Many homeowners in pre-foreclosure have no idea their properties still legally belong to them. They believe the house already belongs to their lender and start making plans to move out. So, it is usually surprising to them when we tell them that they still own their house and can sell it before foreclosure.
Selling a pre-foreclosed home is more complicated than a typical house sale. Homeowners in this situation have to gauge their options carefully. Their chosen option should be based on their state’s pre-foreclosure duration.
One of the most practical solutions for most homeowners facing foreclosure is selling to an investor. This option offers a wide range of benefits to them. But before we dive further, let’s touch on the steps to take when selling to an investor.
How to sell your pre-foreclosed home to an investor
1. Consult your lender
As we have stated, different states have different pre-foreclosure duration laws. Therefore, before selling the house, consult your lender about the timeline available to sell your home. This first step will let you know how much time you have to find an investor.
Provided that the sale of your home can cover your debt, most lenders will agree to your offer. It will save them the time and expenses of evicting you and marketing the foreclosed home.
2. Contact a reliable investor
Take it from us – not all investors want the best for you. After seeing your situation, many investors may offer you less than a fair price for your home. Therefore, make sure you avoid falling into the hands of an unprofessional investor.
Our company, Bost Redevelopment, will be open and transparent with you throughout the process. We know you may be going through a lot already and therefore will provide you with a stress-free experience.
3. Sell to an investor
After checking your home, reliable investors like Bost Redevelopment only take days to close the deal. A dedicated investor would get an After-Repair Value (ARV) estimate and offer you a fair price based on that.
Once you agree to the offer, the investor will ensure you are paid within 7-10 days, unless a different time frame is agreed to. Some investors might even help pay for your packing and moving to simplify the process for you.
Benefits of selling your pre-foreclosure home to an investor
1. Zero repairs needed
A homeowner in pre-foreclosure will most likely not have enough cash to spare for repairs on the property. That means they will find it challenging to make the necessary repairs before listing their home for sale. As a result, your buyer’s bank/lender may refuse to give them the loan.
With an investor, repairs are non-issues. An investor will buy your house as-is. The holes in the walls, the leaky faucet, and even the damaged roof are no longer your problem. The investor will handle all that for you. It doesn’t even matter how dull your curb appeal or your wallpaper is – the investor will not mind.
The investor will simply check your home (with an inspector or contractor), get the ARV estimate, and offer you a fair price.
2. Investors act fast
The primary reason why a homeowner will want to sell their home in pre-foreclosure is to avoid repossession. Listing your house for sale at this point may seem like a great idea at first – you get to sell your home for a reasonable price, pay off your lender, and move on with your life. But how long will this take?
First, your house may need repairs. Next, you still have to market your home. Then, you have to vet through a large pool of buyers trying to take advantage of your situation for a suitable offer. Finally, after choosing a buyer, they will also need time to get a loan from their lender. Overall, a traditional sale process may take months to complete. Hence, selling to an investor is a better option.
An investor agreement does not require a lengthy process. A reliable investor will put your time constraint into consideration and act fast. The average time to close a home sale deal with an investor like Bost Redevelopment is two weeks. On the other hand, the traditional selling method takes 60 to 93 days.
3. Outright sales payment
Aside from avoiding foreclosure, another priority of yours at this point is getting the money to pay your debt. A traditional home buyer might depend on a mortgage loan to buy your home. However, what happens if their lender disappoints as your deadline closes in? More anxiety and a shorter timeframe to find an alternative buyer.
On the other hand, investors have many ways to secure the money to pay you. That is, they don’t need to rely on mortgage loans alone. They can even buy the property in cash. They can also choose to pay via wire transfer or check, usually through a title company to ensure that everything is done right. This instant method of payment available will make it even easier for you to settle all existing debts.
4. Flexible purchase and after-sale arrangement
Homeowners facing foreclosure don’t want to sell their homes, but they have to pay off their mortgage debt. Similarly, investors don’t buy a pre-foreclosure property just for the price. They buy houses for business – to resell or rent out. Hence, an investor can accommodate the needs of the seller by renting it back to them. Unlike when done in a short sale deal, this step is not illegal.
All that is required is a written agreement with the investor to lay out the rent payment plan. Once this agreement is in place, the ex-homeowner can continue living in the home until a solution comes up.
5. No commission & closing cost
Perhaps, this needs stating – selling your home comes at zero closing and commission cost. Investors prefer to negotiate with you in person instead of a third party. That means you get to avoid paying commissions and closing costs. As you need all the money you can get, taking this option will guarantee your full payment.
Do you need to talk to an agent or an investor about your options?
Are you in pre-foreclosure? Do you need to talk to a real estate agent about the best options for you?
Then, contact Bost Redevelopment today!
We can buy your pre-foreclosed home as an investor. We will assess your home within the shortest time frame (usually in 3 business days) and offer you a fair price.
OFFER! You get a 5-day cruise vacation for 2 if we successfully buy your house. So, click on the form below to send us a message now.