One of the most misunderstood real estate terms is distressed house. Although many believe that it is a damaged or unlivable house, a distressed house has little to do with the condition of the property. Instead, a distressed house is a term that indicates that your property is in the late stages of foreclosure and is getting ready to go to auction.
When you stop making payments to your mortgage and the loan becomes delinquent, the bank may attempt to foreclose the house. If the lender takes control of the property, they may try to sell it at auction to recover some or all the remaining loan balance. If the house does not sell at auction, the bank may list it on their website or through an MLS site to sell the house.
Do You Have a Distressed House?
Whether your house is stressed depends on how many payments you are behind on the mortgage and how far along the house is in the foreclosure process. For instance, if you are only a couple of payments behind on your mortgage, the bank is not in a position to move forward with foreclosure. However, if you are 90 to 120 days past due on the bill, the lender may begin the foreclosure process.
You do not have a distressed house during the earliest stages of foreclosure. Instead, the lender may continue to try to work out a payment plan or offer to restructure the terms of your mortgage. However, after exhausting all other possibilities, the lender will repossess the house and evict you and your family. At this point, the house is going to auction and will officially be distressed.
3 Types of Distressed Houses
There are three primary reasons for a distressed sale. Let’s look at each scenario in more detail.
Many distressed houses are the result of foreclosures. This happens when a home buyer stops being able to make their monthly mortgage payments. The bank forecloses on the home and repossesses the property. Occasionally, the lender may accept a deed instead of foreclosure to assume ownership.
Properties that don’t sell at foreclosure auctions are known as real estate-owned property or REO properties. These homes are considered distressed property. Lenders don’t typically want to maintain or repair these properties and may be willing to sell them at a discount.
And finally, homeowners facing foreclosure may be willing to do something called a short sale. This typically happens when a mortgage is upside down. This means they owe more on the mortgage than the home is currently worth. In this situation, short sales are a more attractive option for the owner.
Why Sell Your House As-Is for Cash?
Today, the real estate market is unreliable at best. There are no guarantees that you will sell your house, get the asking price you want, or make a profit after paying closing costs, realtor commissions, and repair costs. There are several reasons why selling your house for cash is a better option:
- You pay no closing costs, realtor commissions, or other fees.
- There is no reason to renovate, repair, or prepare your house.
- You can avoid listing or showing your house to potential buyers.
- Choose your closing date without waiting.
- We buy your house as-is – don’t bother cleaning it.
- You work with a local house buyer in Louisville, Kentucky.
- We make a fair, competitive offer just under your house’s market value.
With all the benefits of selling your house for cash, you owe it to yourself to explore it as an option. Let us take your property off your hands. You walk away free and clear with no strings attached.
Sell Your Distressed House for Cash in Louisville, Kentucky
Do you live in Louisville, Kentucky? If so, contact We Buy Real Estate today. Sell your house fast for cash in Louisville, Kentucky and the surrounding area. We buy houses as-is in any condition. Call 502-458-2722 to schedule a quick, no-obligation visit with one of our local cash home buyers.