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Avoid foreclosure with property equity saley

For Homeowners who own Properties WITH Equity

Homeowners with equity can, without too much strife, refinance their current loan to satisfy the foreclosing lender. If you have enough equity (30-40%), you’ll be able to not only payoff the foreclosing lender but also all the back payments and arrearages. Get a quote from a Mortgage Broker.

This is a wise and, for the most part, an unobtrusive choice if you have sufficient equity.

Selling Your Property for a Retail Price

A homeowner may decide, for any reason and at any time, that selling the property is their best alternative. However, the proposed sale of a property currently in foreclosure is not without its share of risk. If a homeowner decides that they would like to sell their house for the highest possible price, they must market to an “end user” or a “retail buyer”. An end user is someone who most likely visits your home with a real estate agent.
An end user would be most likely interested in occupying the property as their home and not as an investment property.

End users would normally have to qualify for a mortgage, have appraisals and inspections completed and, hopefully, close. In order to sell their home to an end user, the borrower must first get their property looking its finest. This usually costs not only money, but time as well. If this is attempted during a pending foreclosure action, time is of the essence. The foreclosure action continues to march forward without delay, and can sometimes come between a selling homeowner and their closing.

Find out how to stop your foreclosure sale.

Selling your property to an end user has its benefits. You can generally keep the equity you worked so hard to preserve for your own personal use. It is this equity that you will rely upon to make your fresh start and help put your financial distress behind you. It is, however, this same equity that you must give away in order to sell your property to an investor.

Selling Your Property to an Investor

Should a homeowner, turned foreclosure defendant, see that they are running out of time, selling to an investor has its advantages.

Investors can generally close quickly by paying cash. This helps by eliminating the necessity of an appraisal and the loan application and approval process that would be necessary if an end user and conventional financing were involved. Investors will also generally buy property in it’s as-is condition, which serves to eliminate property inspections and lender-required repairs. Selling to an investor versus an end user can be compared to Federal Express versus the US Postal Service. Like FedEx, it will be more costly to send something FedEx, but it will be done faster. The US Postal Service will be more cost effective, but it generally take longer to deliver. An investor is looking at your home as an investment, and intends to either rent it out or sell it again quickly for a profit.

An investor will be looking at your situation to help him determine how desperate you are and how much of your equity they can turn their way. I’ve known investors who have bragged about getting as much as 90% of a homeowner’s equity because the foreclosure sale was the next day. Hopefully, you've considered your options well in advance and you have plenty of time to decide which path is better for your situation.

Find out how to stop your foreclosure sale.

If you feel like you must sell your property to an investor, get multiple offers. There are hundreds of investors that would jump at the opportunity to buy your home. Get them bidding against each other for the right to purchase your home and you might just do okay.

Also, there are other investor programs available to further help to cushion the blow of having to sell to an investor. Ask if they have any type of equity sharing program available.

Find out more information about equity sharing.
Find out more information about selling your house to an investor.