An associate called the other day and said, “Can you We buy houses for cash fast? I’m in big trouble and need to sell by the end of the month or lose my home to foreclosure.” I hadn’t talked to Don in nearly a year and was shocked to discover he had lost his life savings to a bad investment scheme. To make matters worse, his wife had been stricken with a life threatening illness. Between the loss of her income and staggering medical bills, they had become four months delinquent on their mortgage loan.
Unfortunately, “sell my house fast” is quickly becoming America’s motto. As a real estate investor I receive at least a dozen calls a day from desperate homeowners needing to sell their home quickly. The problem is too many borrowers wait until the last minute before taking action. By the time they call me they are so far behind there is little hope of saving their home.
While there are many reasons a homeowner needs to sell their house fast, the most common reason is to avoid foreclosure. Although President Obama is taking steps to help distressed homeowners save their homes, mortgage lenders are swamped with loan modification requests.
With the current economic recession, ‘sell my house fast’ sounds like oxymoron. However, there are various techniques which can help homeowners become unchained from their mortgage note. Some techniques are difficult and time-consuming while others are easy and relatively pain-free. Much depends on the amount owed on the property and what lengths the homeowner is willing to go in order to sell their home.
Homeowners who are delinquent on their home loan and experiencing temporary financial setbacks might qualify for a loan modification. In this situation, mortgage lenders can reduce the monthly payment amount or rollover two or more payments to the end of the note.
When borrowers have fallen behind by several months, some lenders will allow the homeowner to enter into a short sale agreement. With a short sale, lenders agree to accept less than is owed on the mortgage loan as long as the borrower can sell their home within a specified period of time.
Not all lenders offer short sales and homeowners cannot sell their home for less than they owe without obtaining bank approval. If you are in the pre-foreclosure stage, now is the time to contact your lender and request a short sale.
The short sale process typically takes four to six months to complete. Some lenders accept the purchase price as payment in full toward the mortgage note. Others require borrowers to pay the difference between the sale price and loan balance. Before entering into a short sale agreement it is important to determine your lender’s short sale policies.
One lesser known source for selling a house fast is private real estate investors. Although the housing market is in a slump, investors are purchasing distressed properties at record speed. History has proven real estate is a smart investment and financial experts predict the market will eventually rebound. By investing in low-priced real estate now, they can potentially amass a fortune in the future.
If your daily chant has become, “I need to sell my house fast”, consider selling your property to a real estate investor. Many investors buy houses with cash which can accelerate closing and save thousands in closing costs and realtor commissions.
