Foreclosure is a very unfortunate situation in a homeowner’s life. As stated in foreclosure statistics, 1 out of 200 homes faces foreclosure every year. The reason for foreclosures is the financial edge that most homeowners undergo.
What is foreclosure?
In simple terms; Foreclosure is an act of taking ownership of a mortgaged property. The lender or the bank has the right to sell the property for recouping the money and interest respectively.
How does it work?
The Foreclosure process consists of a legal course. The lender takes control of the property by evicting the homeowner, further selling or auctioning the property. Foreclosures generally occur when the borrower (homeowner) fails or stops paying the mortgage payments.
If you are one of them who are seeking help then read the options to consider when facing foreclosure below –
Defend Yourself in Court
Although homeowners are in a melancholy while facing foreclosure, they still have some options accessible to stop foreclosure. The first option is to fight back to the bank. If you think the bank has made an error like sending untimely notices, improper service of notice and loan closing breach of contract, etc. You can defend yourself in the court and countersue the bank for unethically handling the case.
Rent Out the Property
One of the best possible option to stop foreclosure is to rent your property. By renting you are generating a passive income which will possibly cover your monthly mortgage payments. Talk with your lender clearly before moving out. They might charge you with higher interests as you won’t reside there anymore. Also, make sure you offer a mutually feasible rent that would satiate the mortgage payments as well as your personal needs inclusively. Employ your asset and lodge a part of it, it will surely help you in making faster repayments.
Consider Refinancing and Loan Modification
Opting for refinancing will lower your burden of paying heavy installments. If you have ample amount of equity and you’re not much behind the payments then refinancing is the best option. By refinancing you are requesting for a brand new loan with lesser interest rates that help in faster payments.
You can also choose loan modification as per your preference to stop home foreclosure. As similar as it sounds, refinancing it is completely different from it. In loan modification, the lender modifies the prevailing mortgage so that the payments become more affordable. In most cases, the time span is also altered and made feasible.
Consider a Short Sale
Another option to avoid foreclosure is opting for a short sale. What is short sale? A short sale is when a homeowner sells its property for a lesser amount when he or she is on the verge of being financially distressed.
Here, the buyer is a third party; all the profits from the sale go to the bank (lender). If there is still some outstanding debt on the homeowner, the lender will forgive the difference or will file for a deficiency judgment against the homeowner. If the lender files the deficiency judgment then the homeowner is liable to pay the remaining amount within the given time span. Although, your credit score is affected for some years during a short sale, it is better than ending up with a foreclosed property.
If you are considering a short sale then you have nothing to worry. You can contact us here at Elite Properties NY and we will take care of the rest of the proceedings.
Selling a Foreclosed Property
There are multiple ways to stop foreclosure some are effective some are not, it relies on the situation you are in. If you sight foreclosure nearing, you should act fast and sell your home to cash buying companies. Companies like ‘Elite Properties’ buy houses within 3 days in all cash-offer. Once you sell the house to us you receive hard cash, which is always a great deal. Selling home to cash buying companies crafts the deal on the current value of the property. They provide you with certainty concerning the costs and timescale. Furthermore, you can pay your outstanding debt with the help of that money and start afresh.
If you are suffering from any other real estate crisis and need assistance we will be happy to help you in your tough times. Get in touch with us, rest assured we’ll provide you with the best possible solutions.
There are several key advantages of buying a foreclosed home it could be tremendously rewarding as far as investment is concerned. It is crucial to ask questions before purchasing a foreclosed property like – for how long has the property been on the market? You’ll be paying cash or mortgaging? How much money will you have after the purchase? So on so forth, if you have answers for such questions then you are rolling in the right direction where it clearly gives a heads up for purchasing it.
We would also like to enlighten you further on the ways to buy a foreclosed property as it comes in multiple forms like short sales or pre-foreclosures, we hope it helps you get the right property.
Buying Foreclosed Property Through Auctions
It is essential for you to understand that foreclosed properties are sold as-is. If the house has shabby exteriors of worn-out floors, the property will be auctioned anyway with prevailing faults.
The home buying process is much simpler in auctions where the highest bidder wins even if it is for a small amount this particular type of bidding is known as an absolute bid. There is another way of bidding also called as the reserve bid in which the property has to be auctioned for the given price or else the lender gets the title. The purpose of selling foreclosed properties is to achieve the highest price on them.
If you have made up your mind to buy a foreclosed home through an auction then for obvious reasons, you won’t be able to get your hands on a walkthrough. Paying for an unevaluated property could be a bane for your pocket as there are clear chances you’ll end up paying a lot more than anticipated due to additional repairs that come later in the play. As soon as you buy the house, you are designated as the rightful homeowner of the property where eventually you stand liable for all the necessary home improvements that occur post purchasing.
Hence, even if you have bought the property for a cheaper cost through traditional way, repairs can make your pockets bleed money. Do your thorough research and talk with brokers who are willing to work with you and try not to go into the process blindly.
Buying Foreclosed Property Through Banks
There are mainly two types of foreclosed homes which are –
- REO(Real Estate Owned) Properties
- Bank Owned Properties
Both of the above foreclosed properties are under the ownership of the lender which is mostly the bank, the only way of differentiation is the stage of the foreclosure process. Before you proceed with the buying of the property at auctions or through banks make sure you get a mortgage.
Whereas buying a foreclosed property through cash could be the soundest option it may be not so feasible for many homebuyers. If you have thoughts on buying a foreclosed property with the help of a loan then it is advisable to prequalify and get a preapproval letter before you start with the research and proceed with the home buying process. The latest preapproval letter from the lender or bank will aid in providing detail of how much money you can have in the form of a loan, based on the lender’s evaluation of your credit score or income.
Buying Foreclosed Property Through Brokers
The professionals know the best, real estate agents are highly experienced in their stream they will assess your property inclusive of factors like the current condition of the house, locality, and neighborhood. If you are a first-time foreclosure buyer we advise you to get in touch with a broker who knows the tricks of the trade as far as REOs come into play. Hiring a real estate agent would surprisingly cut down your legwork and time and steer to your desired property.
Although it is the most advised suggestion for new home buyers, we would also like to inform that buying a distressed property through agents could be rash on the budget as you will have to pay the commission costs to him or her which makes it less fair deal.
Make Cash Offer On House In Foreclosure
There are companies that buy houses for cash in New York and sell it to you post flipping. ‘Elite Properties’ is one such company that help buyers and provide necessary services to those who are facing foreclosure, they will also help you in stopping foreclosure. These companies buy the foreclosed properties and renovate it by providing necessary amenities to the future consumer. They do the primary improvements like sewage repairs and HVAC repairs including some renovation of tiles or ceilings. Furthermore, these remodeled properties are listed out in the market for sale at modest prices for homebuyers that wish to buy foreclosed properties at reasonable prices.
Companies that buy house for cash are saviors if you are running out of time, but have your eyes on the dream property. By paying cash for foreclosure properties, you can buy your dream house without worrying about the renovation, as all you get is brand new properties with no flaws. They will propose the final deal and give you a moving date according to your specifications. All you have to do is finalize the cash offer and get things done. You require no paperwork or any kind of legalizations at all.
Last Words Before Purchasing A Foreclosed Property
Given above were the four ways of buying foreclosed properties. After reading the blog above, you will be able to make better decisions for yourself that will take you closer to buying your dream home even if it is a distressed property. If you are residing in New York City and wish to buy and sell properties then get in touch with ‘Elite Properties’ they will provide you with the exact solutions for all your real estate crisis and guide you through the right path.
Buying your house might have probably been one of the most significant investments you’ve ever made as a homeowner. But as time passes you might feel like your “All American Dream” fell a bit short.
Spending every lunch break and recess time surfing through the local real estate listings might help you in knowing the current market value of your property, but it’ll never tell you the right time to sell it. Trusting your basic instincts and moving forward with selling your house might lead you to a large pit rather than filling your bank with dollar bills. Well, if you are confounded with the jejune offers you got for your property, step-down from selling your house. Our life can take unrealistic and unpredictable turns here and there. This might leave us in a financial crisis or even a mental crisis. Maybe it might also force you to sell your hard earned house to meet the immediate money needs. But, you must make sure that selling your home should be your last resort before jumping to conclusions.
Knowing the right time to sell your house has always been challenging and a daunting task. One must be aware of all the market trends and anti-swindler strategies before ripping off the Band-Aid and selling his/her house. Here are some signs which can help you to understand that it is officially the time to part ways with your house…
1. Your Family Grew and Doesn’t Fit In Anymore
Your current house must have felt perfectly comfortable when you were newlyweds. Well, a 2bhk apartment or a condo must have been sufficient for both of you. But as time passed by, you began thinking of adding a new member to your family. Times were joyous and momentous with the new baby’s arrival, and you were living the dream. Fast forwarding a few more years, now you have a dog, toddler, and a new baby on the way which makes your house ill-fitting for accommodating all. This is the moment you must decide you need a bigger home to provide the needs of everyone.
While searching for the optimal house, make sure your kids get independent rooms to sleep in and have ample space for storing all toys and amenities (especially for babies). Getting a house within a limited period might be challenging, so it would be a wise decision if you start looking for remodeled homes or hire an experienced real-estate agent.
2. You Know The Market is Active and Strong
Living in a potential property market can be intriguing and at the same time exciting. The constant proposals from real-estate agents and brokers making your mornings miserable and the periodic ‘sold-out’ boards that pop up in your neighborhood might urge you in selling the house. And don’t forget how your neighbor managed to gain a fortune just by selling his/her house.
The key to finding whether it’s the right time to sell your home depends on the market. If the market is hot, you must go for it without any second thoughts. For example, consider you bought your house in late 2008s for a whopping $870,000. Within a decade your locality has flourished, and the property market has shot up with the arrival of a new highway or a metro station. Now, you might have offers for your house starting from a minimum $1,050,000. You got two options, either wait for the price to upsurge more or sell it now and start fresh somewhere else with a hefty profit.
3. You Are in Need Of Some Immediate Money
We’ve mentioned how life can take unexpected turns. If selling your house is your only way out from a gruesome incident, then you must go for it. But, make sure selling your home is your last resort and not your first option. The money you get from selling your house can indeed help you out from this temporary financial situation, but it will leave open the gates for a homeless life if you don’t plan the whole situation with negligence.
Selling your house to “we buy houses for cash” companies might be the best alternative if you need some immediate money.
4. Your House No Longer Fits Your Lifestyle
If your lifestyle has changed drastically in these past years and your house isn’t providing you with all your needs, then you must consider selling your home. Well, what would you do with a mansion, when all your kids have moved out and you barely use the rooms apart from the living room and bedroom you sleep in?
Another scenario can be jobs. Your company might assign you to a different place for job purposes which in turn extends your commute. What if your new office is on the other side of the state? Selling your house and looking for a new one in the locality of your new office might be the best possible solution you have. Finding a new home immediately might be difficult. Hiring a professional property agent and signing for a remodeled house can meet your immediate house needs.
5. You Need To Save Yourself From Foreclosure
Facing foreclosure? Selling your home to save yourself from foreclosure is a pretty good idea if you have no other way to pay your defaulted mortgage. Inform your mortgage provider and agree with listing your house under short sales. Short sales will grab the attention of many property dealers, property agents, and potential property buyers. If you are lucky enough you can land a great deal which can save you both from foreclosure and bankruptcy. Well, all you need is a short sales expert by your side.
6. You Have a Distressed Property
Keeping a distressed property or being an owner of a distressed property is a headache. The trouble of finding a buyer or any interested agents might be challenging. Since these properties aren’t in good shape with almost nil repairs and refurbishments, assigning a proper price tag for these houses can get real tricky. Most of the owners might nod unwillingly for a price tag which is far too less than the market value.
Keeping hold of a distressed property is a hectic situation where the owner might even be willing to sell the property at half the price. Well, it all depends on buyer’s ability to negotiate. So, selling your distressed property won’t help you much financially, but it can eliminate any future complications. Selling your house to companies that buy houses in any condition can be a great opportunity to start your career in real-estate.
There are many “we buy houses for cash” companies in the market. Selling your house to companies that buy houses for cash can help you land a great deal without any hassle. Hiring a real-estate agent might be the best possible decision you can take in selling your house immediately.
Are you in need of some urgent cash and have to sell your house fast to meet the ends? Then, sell your house fast for cash to a real estate company that buys houses for all cash…
Most of you might have come across “we buy houses for all cash” ads in your day-to-day life. It could be in a flyer, or in a banner across the road or might even be in your inbox as well. Usually, we ignore these ads thinking these are scams and approaching them might be dangerous. But, what if unexpected financial troubles have caught up and now you are forced to sell your house or property? In these situations, you might be looking for a way to get fast cash, which in turn lead you to the doorstep of most of the “we buy houses for cash” companies. Well, the real question is “How much can you trust these companies and ads”?
Seeing flyers on electricity and telephone poles that read in all bold, “we buy houses for cash” won’t do much of a convincing but, believe-it-or-not these companies are legit and has a prominent role in real-estate business. These companies will buy houses slightly under market value, make the needed repairs and sell the property at a much higher price to get profit.
How To Find Out the Company You Chose is Legitimate
It isn’t necessary that every detail on the “we buy houses for cash” flyer is accurate. Before approaching the company to sell your house make sure you aren’t being framed. Here’s how you can find out whether the company you chose is legitimate or not:
A Company with Website: The first step you must take before ringing the company’s phone number is to surf their website. If the Company’s name and logo are displayed on the website, the firm might be legal and is working under the California online privacy protection act. This will ensure all the details you enter on the website at the time of the query isn’t leaked to the public or can be accessed by any third-party company. Make sure to omit the companies that hide their names from the website as it would be difficult to trace them at the time of an issue or conflict.
A Company Which Displays Contact Information:Contact information is pretty essential and only choose the company who aren’t ashamed to display their contact information. It would be great if you work along with a company which has a dedicated customer service sector. This will make sure you are well informed about the status of the services availed.
A company with listing on Multiple Business Listing Sites: Google the company up and check whether they are listed on Business listing sites like Yelp, LinkedIn, Hot Frog, Yellow Pages, and others. A company with listing on multiple platforms can be trusted to an extent.
Check For Positive Reviews: Checking for customer reviews regardless of it being positive or negative can tell you a lot about the company and its function. This will also let you know whether the company has any previous recorded issues or conflicts with customers and the market.
Checking all these before trusting or proceeding the company will ensure that you have a reliable buyer and hassle-free services. A trustworthy real-estate company can be the best solution for your fast cash needs if you have a house to sell.
Why You Should Sell Your Home to a “We Buy Houses for All Cash” Company
1. An Immediate Relief
If you are stuck up in some financial situation and need some urgent money and the only thing you can sell is a house, then these companies can be your immediate relief. Their professionals will be evaluating your house or property and will provide you with a no-obligation cash offer. Most of the times the amount they offer will be less than that of the current market value of the property but, they’ll make sure the offer is reasonable and digestible for you.
2. Sell Your Distressed Property
If you have a distressed property, then selling it can be one of the hectic and challenging scenarios you have to go through. Finding a proper buyer is easily said than implemented. This is where “we buy houses for cash” companies come in. You can sell your property to these companies, and since it is a distressed property, any offer they put forward can be approachable. But, this doesn’t mean you have no option to negotiate.
3. Save Yourself From a Foreclosure and Short Sales
If you are facing foreclosure, a real estate company that buys houses for cash can aid you. With proper consent from your mortgage dealer, you can sell your house on short sales to the companies mentioned above and save your some money for a temporary apartment.
4. Fast Closings
These companies can close a business deal in a span of time as less than seven days. Since, there are no approved financing, appraised values, inspections and other things that pop up at the time of selling a house, bypassing all these steps will help in closing a deal faster.
What would you choose, a “We Buy Houses” company or rather wait for a buyer? We buy houses companies are legitimate, and you could easily fill your pockets just in days. Since you have proper tools and resources now after reading this article, finding a professional company wouldn’t be that hard. But, always know that “We Buy Houses” companies aren’t for every seller.
Have you recently received a foreclosure notice on your home? Well, panicking will never save your home from being in foreclosure. So, take a deep breath and cool off yourself, as many things have to be done before you quit yourself…
Owning and living in the same home is one among the American dreams. But, the recent studies have shown that it has created a sense of fear and frustration as they keep on trying to meet the ends and avoiding the foreclosure nightmare. If you think you are the only one who is in this situation, then you are wrong. People from all income levels are suffering from the clutches of homes in foreclosure even as we speak. And people feel more helpless when they try to get the help of internet to understand the foreclosure process. Since many real estate terms and jargons are involved, it is indeed difficult for an ordinary man to grasp and understand every crisp detail.
Well, numerous non-profit based firms provide foreclosure assistance for all. Through this article, we’ll try to lend you a few helpful tips to make you understand foreclosure isn’t the ‘end of times.’
Here’s what you need to follow when facing foreclosure…
1. Go Through the State Laws
You must know that every state has its own foreclosure laws. So, before jumping to conclusions, it would be wise to go through the State’s Laws on foreclosure. Depending upon the State, the home foreclosure can be either judicial or non-judicial.
As for a non-judicial foreclosure, there are no courts involved. The lender doesn’t have to go through the courts to file the foreclosure. He can send you a ‘notice of default’ (which is a notice mentioning the failure of payments) along with a ‘notice of sale.’
When it’s judicial foreclosure things get more complicated. You’ll be sent a complaint along with a summons to the court. It means that the lender has already filed a lawsuit against you. You shouldn’t miss the deadline for the response at any cost as the court will pass the law in favor of your lender and allow the foreclosure to proceed.
2. Foreclosure Doesn’t Happen Overnight
Foreclosure doesn’t happen overnight. And this is a fact. Foreclosure only begins when you miss a couple of months of payments. Usually, the lender will send you a notice of default when you miss four or five months of payment. They’ll also specify an amount that you need to pay for to cover up for the defaulted loan and a deadline along with it. Once you failed to meet the requirements, you can expect foreclosure process to begin any time.
So, you’ll have a minimum of four to five months (depends on the lender) after the last payment to cover up your default payments
3. Judicial Foreclosure a Boon?
Once you understand you are under either judicial or non-judicial foreclosure, the first thing to do is not to panic. Judicial foreclosure usually comes under foreclosure by bank. But, let us make one thing clear, the latter situation might be less advantageous as these happen way quicker. However, you’ll be the legal owner of the foreclosed property has been terminated by a new sale deal.
In judicial foreclosures, the court proceedings can take as much as a year. It will aid you in finding a new home. But, still, if you fail to find an alternative home within the deadline of foreclosure, you’d be welcomed with an eviction.
4. Call Your Lender
A lot can happen over a call. Don’t back yourself from calling your lender and asking for a relaxation. Explain your situation, try reasoning with him for an extended mortgage pay off time. Hopefully, he/she might agree. This might even help to delay foreclosure. Well, it’s worth a shot right!
5. Chapter 13’ Your Last Resort
Chapter 13 can be your last resort. A lawyer can help you file a Chapter 13 bankruptcy, which will in turn force the lender to negotiate a payment plan. But, use this as a last resort only. Being stated as bankrupt can hurt your credit score and filed suit against a lender can drag you into much more deeper troubles. You’ll also have an option to put your home on short sales.
With a little bit of preparation, you can survive the whole foreclosure process. You’ll have enough time to prepare for it, and you only need to vacate the property till there’s a new buyer. So, save up some money and look for a better and affordable rental. As for lenders, to find a buyer for a property under foreclosure is pretty tricky. There are many agencies and skilled real estate agents to ease up the pressure and help you get a new buyer. You can contact real estate professionals like ‘Elite Properties’ for more experienced advice and foreclosure help.