The short answer is, yes. But it’s generally a more nuanced issue that needs to be thought out fully. Let’s start with the basics. So, what is foreclosure anyway? Foreclosure is when a mortgage, or home loan, isn’t paid and goes into default. When this happens, lenders can demand the repayment of the entire loan. From there, the bank will initiate the legal process to repossess the home and resell it to cover any money owed. It’s an ugly process that can leave families without homes and will negatively impact one’s credit. Do anything and everything in your power to avoid foreclosure. This can – at times – mean selling your home quickly to an investor.
There are a couple of basic ways to avoid foreclosure. The first would be a short sale. You have to work with your lender on this though. It is essentially an agreement between you and the bank to sell your home for at a reduced price. In theory, this will help attract potential buyers, and you can sell your home more quickly. There are certainly advantages to this such as allowing yourself time to relocate your family, and avoiding a foreclosure report on your credit. The negative side is you potentially will lose any equity you have in the house. In short, the bank will get as much as they can to pay offf as much of the mortgage as possible, so there’s a good chance you don’t receive anything from the sale.
Luckily, a short sale isn’t the only option you have. If you need to sell your house quickly, consider Signature Home Buyers – who will pay cash for the house. If you take action quickly enough there are several advantages to working with a cash buyer.
Investors differ from short sales by giving you more flexibility to set your own timeline, and you generally have more control over the price of the home. When selling to a cash buyer, you have the chance to retain some of the equity youve built in the house. If this sounds like an appealing option to you, call us today, or visit our home page to see how we can help!