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Avoid foreclosure with property sale to 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.

To receive an offer from an investor for a short sale, complete our Investor Offer Form