If you need to sell your home fast, but don’t have the time or resources to complete all the required repairs, don’t lose hope yet. Depending on your current situation, there are a couple options to consider. The first and quickest option is to sell your home to an investor. Most investment transactions can take place with little to work on your part. Your second option is to request a short sale from your lender, but conditions do apply.
When to Sell Your Home “As Is”
Due to limitations on most conventional mortgage loans, the majority of home buyers can’t purchase a home as-is when significant repairs are needed. Loans issued by the VA and FHA, for example, require the home to meet certain standards prior to the purchase. And, lender requirements aside, the typical home buyer does not want to purchase a home that requires major repairs.
If you want to sale a home that needs significant repairs, the best solution is to find a cash buyer to purchase the home as-is. Depending on the extent of the repairs that are needed, many cash offers will provide a fair market value based on the condition of the property.
The easiest way to locate an investor to purchase your home is to use an investment firm like 800-BUY-KWIK or contact a local real estate agent. Most real estate agents know investors who are looking for these types of investment deals.
When to Consider a Short Sale
If you currently owe more than your home is worth, a short sale might be a good option for you. A short sale occurs when the property is sold for less than the amount owed to the lender. Some mortgage lenders will accept short sales in lieu of foreclosure to mitigate the cost of a full foreclosure.
When Short Sale Isn’t an Option
There are several reasons why you may not qualify to ‘short sale’ your property. The major reasons include:
You Can’t Prove Financial Hardship
First and foremost, to qualify for a short sale, you have to be able to prove that you can no longer afford the mortgage. Your lender won’t agree to take less than you owe if he/she believes that you are capable of making the payments. In this case, you’re better off finding an investor to purchase the home as-is.
You Filed for Bankruptcy
If you filed bankruptcy, you will not qualify for a short sale. A short sale is considered a collection activity, which is prohibited when filing a bankruptcy.
You Have Property Liens
Most banks won’t allow a short sale when a property has a lien, such as a subordinate lien for a secondary lender.
Selling your home “Subject to”
In some cases it may be possible to sell your home “Subject to” the existing financing.
In this case the buyer, who is typically an investor, can take over the financial responsibility for making your monthly payments. This solution doesn’t provide any profit or proceeds to the homeowner from the sale of the property, but it does remove the burden of the financial responsibility, and allows the investor the time needed to renovate and resell the property.
This is more common than you think and can often be the only way to free yourself from a difficult situation.
There are no hard and fast rules when it comes to selling your home “Subject Too” but our 800-Buy-Kwik representatives can help you navigate this option to see if it’s right for you.
What to do next…
Be realistic in your expectations and be honest with yourself about what you are trying to accomplish. Chances are there is a solution available, it’s just a matter of what your goals are.