We Buy Ugly Houses: Tips For Selling Distressed Property To Avoid Foreclosure

By Simon Volkov

“We Buy Ugly Houses” is a registered trademark of HomeVestors of America; a home buying franchise based in Dallas. HomeVestors has become one of the most recognized house buyers in the nation through their brightly colored billboards that dot highways and byways across the nation.

HomeVestors, “We Buy Ugly Houses” program focuses on buying properties in need of extensive renovation or repair work. Properties are purchased for around 60-percent of appraised value, less repair costs. HomeVestors invests in required repairs and sells the property for profit. The program has helped alleviate financial burdens for borrowers facing foreclosure while stabilizing housing prices within the neighborhood.

While HomeVestors offers relief to borrowers who own ugly, rundown properties which require substantial repair there are few resources for borrowers who need to sell homes that are in good condition.

The current real estate market has left many borrowers owing more than their home is worth. These property owners need help selling their house fast, but are unable to reduce their asking price.

Many reasons exist for needing to quickly sell houses that are in great condition. The most common include foreclosure and personal bankruptcy. Some sellers need to sell second homes or vacation properties to reduce financial obligations. Others need to sell due to job relocation, death of a spouse, divorce, or military deployment.

When mortgagors obtain short sale approval they must locate a qualified buyer quickly. When mortgage providers enter into short sale agreements they accept less than is owed on the home loan in exchange for a quick sale.

Not all banks participate in real estate short sales. Those that do require borrowers to provide financial records to prove they are financially insolvent and unable to pay their mortgage loan balance in full. Once approval is obtained, the short sale process takes three or more months to complete.

Estate administrators in charge of managing probate estates often need to sell real estate to settle the estate. Probate is the process used to validate decedents last wills, pay outstanding debts, and transfer inheritance property to rightful heirs.

Decedent estates are responsible for paying real estate related expenses. If decedents have a mortgage, the estate must make loan installments along with property taxes, mortgage insurance, homeowner’s association dues, and property maintenance.

If the estate is financially incapable of paying real estate expenses a probate judge can order the property sold. Each state has different probate laws. Some require court authorization before real estate can be sold. Others allow estate executors to act as fiduciary and make decisions without court interference. If multiple heirs are entitled to the property they must all agree to the sale unless ordered to liquidate the property through the court.

A lesser known way to sell homes quickly is through real estate investors and investment groups. Private investors often purchase homes with cash in order to expedite the deal. Mortgagors who have obtained short sale approval should consider seeking out real estate investors with experience in short selling.

Private investors can be located by conducting online research, via newspaper Classifieds, or by attending real estate club meetings. Mortgage brokers and realtors can often recommend local investors or investment groups.

It is crucial to conduct due diligence in any real estate transaction. Ask investors for a list of referrals and recent real estate transactions they have made. Contact each referral to discuss their experience with the investor. For most people, real estate is their most valuable asset. Make certain it is protected by taking time to conduct research to ensure you are working with a reputable investor.

About the Author: At Simon Volkov, we buy ugly houses, pretty homes, commercial real estate, and probate property. Release the financial burden from your back by submitting property info via the ‘We Buy Houses’ form at SimonVolkov.com.

Source: isnare.com

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