Tips To Buy Houses for Cash
Buy house for cash programs offer benefits to both buyers and sellers. This type of real estate transaction provides an opportunity for homeowners facing foreclosure to get out from under their mortgage note, while allowing buyers to obtain a great real estate deal. Homeowners who seek out buy house for cash programs generally need to sell their home within a short period of time. In most cases, they are facing foreclosure or need to sell their property in order to satisfy a short sale agreement.
Short sales are a type of real estate transaction which must be authorized by the lender. The bank agrees to accept less than is owed on the mortgage note as long as the homeowner can locate a qualified buyer within a specific timeframe. The primary reason homeowners engage in buy houses for cash programs is because they are unable to locate a qualified buyer. With today’s credit crisis, banks simply aren’t lending money. Add in skyrocketing unemployment and economic recession and it is easy to see why few people are able or willing to buy houses. Currently, supply significantly outweighs demand.
For many, selling their home for cash is the only option left. As long as the lender approves the short sale and agrees to Payment in Full without Pursuit of Deficiency Judgment, homeowners can walk away from their property without owing any money. Some banks issue Deficiency Judgments to satisfy short sales. When this occurs, homeowners are responsible for paying the difference between the purchase price and loan balance. Therefore, it is important to understand which type of short sale agreement your lender is offering.
Foreclosures and short sales aren’t the only reasons a homeowner might need to sell their house for cash. Oftentimes, when real estate is inherited it must be held in probate. Probate is the process used to validate the decedent’s Will and distribute assets accordingly. Probate can take several months, or even years, to settle. The decedent’s estate is responsible for maintaining the property while it is held in probate.
When the estate does not have the financial resources to pay mortgage payments, insurance, taxes, maintenance, etc., heirs can elect to sell the probate real estate in order to reduce the financial burden. When engaging in buy house for cash programs, it is imperative to do your homework. Unfortunately, there are unscrupulous people out there who earn a living by preying on desperate people. There are many ways to determine if a company or real estate professional is operating a legitimate business.
Further verification of buy house for cash programs can be obtained through each state’s Attorney General’s office. In addition to providing licensing information, the Attorney General’s office also attends to consumer complaints.
Selling your home for cash can be the answer to your prayers as long as you engage in due diligence. If you are facing foreclosure and in panic-mode, do not allow yourself to make rash decisions because you’re in a bad situation. Take time to do your homework to ensure you are working with a reputable company. Obtain legal advice prior to signing any legal documents and be certain to thoroughly understand what you are signing.