If you can no longer make mortgage payments each month on your house, and the bank is threatening to foreclose, you may have what is known as a distressed house. It doesn’t matter why you can’t make your payments – divorce, tax liens, bankruptcy, or even a damaged house. If you default on your loan, the bank will attempt to repossess the house and sell it at auction.
If your house goes into foreclosure or short sale, or you need to file bankruptcy, it can affect your credit and prevent you from buying another home for two to three years. If you are looking for an alternative to foreclosure, you may want to consider selling your house for cash to a local home buyer. You can sell your distressed house fast, pay off the mortgage, and walk away with your credit intact.
What is a Distressed House?
A distressed house occurs due to a homeowner that defaults on their mortgage loan payments. There are several other ways that a homeowner can encounter distressed debt, such as not paying off their loan by the time it reaches maturity, becoming delinquent on property taxes, or getting condemned due to disrepair. There are several reasons why a homeowner may default on a loan.
- Separation or divorce
- Death in the family
- Financial hardship
- Damaged house
Regardless of the reason for the distressed house, the bank will attempt to foreclose on the house to recover part or all the loan balance. Once it reaches this point, most homeowners give up, believing there is nothing they can do to get out of the foreclosure or short sale. However, this is not true. If the house has not been sold to another buyer, the owner can still sell it.
Types of Distressed Houses
There are several ways that a house can become distressed.
Abandoned or Vacant House
A homeowner may decide that the house is not worth living in, so they abandon the property. They may move to another state or ‘disappear’ to avoid liability for the unpaid mortgage. This can cause the house to become distressed, leaving the bank no alternative but to sell the property.
REO houses are bank-owned properties. The bank may have repossessed the house and tried to sell it at the auction but could not find a buyer. As a result, they maintain ownership until a buyer is found. They may hire a realtor to sell the house or list it on their website.
Pre-Foreclosure & Foreclosure Properties
During pre-foreclosure, the bank sends a notice of intent to foreclose on the house. This part of the process is known as pre-foreclosure. The bank continues to send letters and notices of intent. During foreclosure, the bank has repossessed the house and intends to sell it at auction.
HUD homes are properties that are foreclosed upon and sold by the U.S. Department of Housing and Urban Development. When an FHA-backed loan finances a property, and that property goes into default, it can be foreclosed upon by the government agency rather than a private institution.
How to Avoid Foreclosure and Sell Your Distressed House Fast
Step 1: Contact Us
Call us today and tell us about your property. We’ll schedule a quick walkthrough of your house—no need to renovate or prepare your home.
Step 2: Get a Cash Offer
If we are interested in buying your property, we’ll make a fair, no-obligation cash offer. We make most offers within 24 to 48 hours.
Step 3: Get a Cash Payment
If you accept our offer, you can schedule a convenient closing date. We pay all closing costs and put cash in your hands in as little as seven days after closing.
Benefits of Selling Your Distressed House for Cash
Although you could put your house on the market, there are several reasons why selling your house for cash right now is a smarter option:
You Don’t Have Time to Go Through a Realtor
On average, it takes 90 days to sell a house in Louisville, Kentucky. That’s another three months to deal with the mortgage company. Do you have that kind of time to get out from underneath your mortgage? When you work with a local house investor in Louisville, you can close and get cash in your hands in as little as 30 days.
You Can Avoid House Maintenance and Repair Costs
If you can’t keep up with repairs, then there is no point in maintaining your house. A local buyer can make a cash offer and purchase your house as-is with no need for repairs. You can save thousands of dollars on maintenance costs and walk away from the property free and clear. We buy houses as-is.
We Assume Responsibility for the Property
Once a house goes to foreclosure, the lender will try to sell the house to cover the remainder of the loan balance. If there is any balance left over, the lender may require you to pay it. When you sell your house for cash, the investor assumes responsibility for the property.
Sell Your Distressed House Fast in Louisville, Kentucky
When you sell your house to a local investor, you can avoid foreclosure and the hassle of putting your house on the market. Contact We Buy Real Estate today to sell your house quickly. Call us at 502-458-2722 to get a fast cash offer.