Selling Distressed Homes - Part 1
Updated: Jan 20, 2020
Selling a distressed home can be a little different than your everyday home transaction.
When you have a home in good condition, no legal or financial problems, it can be beneficial if you have the time and patience to list on the MLS and Maximise your profit. When selling a distressed home this can make things a little more difficult.
When listing your home on the open market you could be waiting months if not years depending on many different circumstances including, market, location, homes shape… If you have a home in good condition that isn’t facing foreclosure, or have a re -possession pending, this is most likely your best option. Most Distressed Homeowners don’t have this kind of time. Once a mortgage payment is missed your on the clock before the foreclosure process begins. Homeowners wait too long to find alternative routes to foreclosure and tend to lose their homes to the bank.
If this sounds like a situation you have found yourself to be in and you don’t have the funds to fix up your property, it would be advisable to look into one of the following options:
- A Fast Cash sale
- Payment negotiation
- Loan modification
These are all ways to avoid the hurtful penalty of foreclosure.
If your Distressed home is sitting empty you face even more issues as you still must pay property taxes and in most cases your mortgage, which means you're essentially losing money. Delay in selling your vacant distressed home also poses the threat of having Problem tenants or as some may call “Squatters”. These Problem tenants worsens the value of your home even more and can be difficult to remove them from your property as they have rights as well. Homeowners can also put them selves at risk by not maintaining their property which can result in city fines for safety hazards that violate local codes.
At the end of the day it is better to take action as soon as you realise you have a distressed home and it is costing you, before it costs a whole lot more!
Depending on your situation one of the best options as mentioned if you don’t have the funds to restore your homes condition is to look for a cash buyer, they can close fast and take all your headaches away.
Contact us anytime if you would like to hear how we can help you get out of your tough situation.