A distressed house is a property that is in need of significant repairs or is facing financial difficulties. Distressed houses can include foreclosures, short sales, and houses that are in poor condition due to neglect or damage. In most cases, the buyer is looking to sell the house to get out of a bad situation such as a bankruptcy, foreclosure, probate, divorce, or damaged house.
Distressed houses are difficult to sell due to multiple issues that make the house a poor investment. If you need to sell your distressed house in Louisville, Kentucky, but can’t find a buyer or don’t have the money for repairs, your best option is a cash home sale. You can sell your house as-is to a company that buys houses in Kentucky.
4 Types of Distressed Houses in Kentucky
There are four main types of distressed houses in Kentucky.
A foreclosure is a house that has been repossessed by the lender after the homeowner has defaulted on their mortgage payments. Foreclosures are typically sold at a discounted price, as the lender is looking to recoup their losses.
2. Short Sales
A short sale is a sale of a property where the proceeds from the sale are less than the balance of the mortgage and the lender agrees to accept a loss. This type of sale is typically used as an alternative to foreclosure, and like foreclosures, short sales are often sold at a discounted price.
3. Neglected or Abandoned Properties
Distressed houses can also be properties that have been neglected or abandoned by their owners and are in poor condition. These properties may have damage from neglect, such as peeling paint, broken windows, or overgrown lawns.
4. Damaged Houses
Distressed houses can be properties that have been damaged by natural disasters, fire, or other types of damage, and are in need of significant repairs. The damage may be so severe that the insurance company rejects an insurance claim or only pays for partial repairs.
Why Are Distressed Houses Hard to Sell?
Distressed houses can be difficult to sell for several reasons. Buyers have difficulty obtaining financing for a distressed house, as traditional lenders may be hesitant to approve loans for properties that are in poor condition or have a history of financial difficulties.
Distressed houses typically sell at a discounted price, which can make it difficult to recoup the cost of repairs and still make a profit. The pool of potential buyers for a distressed house is often limited, as many buyers may not be interested in taking on a property that requires significant repairs or has a history of financial difficulties.
If the repairs are extensive, it can be costly to fix the damage and bring the house up to livable conditions, which can deter potential buyers. If the property has safety concerns, it can be difficult to attract buyers, as the property may not be deemed livable until the repairs are made.
Distressed houses can have legal issues such as liens, back taxes, or title problems that need to be resolved before the sale, which can make the process more complex and time-consuming.
What is the Best Way to Sell a Cash Home Sale?
The best way to sell your distressed house is a cash home sale. A cash sale is a private transaction between you and the buyer. There are several benefits of a cash home sale.
- Sell your house as-is and make no repairs.
- Close the sale in as little as one to three weeks.
- Work with a single pre-qualified local home buyer.
- Sell your house for any reason.
- You don’t have to hire a real estate agent.
- A cash home sale can overcome any legal issues.
Get Cash for Your Distressed House in Louisville, Kentucky
You don’t have to hold on to your distressed house. You can sell it as-is for cash to We Buy Real Estate. Our local home buyers can buy your house as-is and pay cash. Call 502-458-2722 to get a fast cash offer on your distressed house