In October 2018, there were 552,908 U.S. properties in some stage of foreclosure. Granted, that represents the lowest foreclosure rate in a decade. But that still means many homeowners are behind on their payments and at risk of losing their homes.
In Florida alone, homes in foreclosure make up 2.5% of the above-cited figure. That’s almost 14,000 homes in danger of being “repossessed”!
If you’re one of the homeowners facing this situation, this doesn’t mean you no longer have any options. One way to get out of this pinch is to work with a company offering cash for houses.
You read that right. You can sell your house for cash to avoid the more disastrous effects of a foreclosure.
But what exactly are these companies and do they really pay cash for homes?
That’s exactly what we’ll cover in this post, so be sure to keep reading!
The Lowdown on Cash For Houses
You’ve likely seen those “We buy houses for cash” ads along Florida streets and highways. Many of these advertisers are professional real estate investors. That means they buy properties, improve them, and put them on the market again for profit.
Because their goal is to make a profit, they can afford to pay cash for an “as-is” home. As-is, meaning you don’t have to make expensive repairs or pay for pricey home staging services. You can even quickly sell your old house without having to renovate it first.
“But will they still buy my house even if it’s rundown?” This question likely popped into your mind, and the simple answer is yes. Whatever the condition of your home, reliable cash house buyers are still likely to make you an offer.
Short-Selling Your Home to Avoid Foreclosure
Professional real estate investors can help you avoid foreclosure through a short-sale process. They’ll negotiate with your mortgage lender to accept a price that’s lower than what you still owe. If the lender agrees, they’ll “forgive” your remaining balance.
Meaning, you get to avoid foreclosure, and it won’t appear on your credit report. Remember, foreclosure can remain on credit reports for up to seven years. So long as you have that on your credit report, it’s highly unlikely for you to qualify for another mortgage.
In fact, foreclosure can affect your general eligibility for other loans. You’ll see a significant drop in your credit score. And a poor credit score is the reason that up to 76% of personal loan borrowers get rejected.
That’s why you want to keep that from appearing on your credit report. Selling your home to real estate investors is one way to keep that off your record.
Sell to a House Buying Company Now
If you’re facing foreclosure, consider working with a real estate investor. This way, you can sell your house and pay off your mortgage in as little time as possible. In fact, cash for houses businesses can get a damaged home off of your hands ASAP, without the need for repairs.
Ready to sell your home now for cash? If so, then make sure you know how to pick your cash buyer! Here are the tips you need to ensure you’re selling to a legit cash for home buyer.