Has anyone had any experiences with legit honest companies who want to pay you a fair price for your house in foreclosure? Are there any? Just wondering if the offer I have is worth looking into!
Thank you!
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8 Comments
There are NO Legit Companies Who Offer To Buy Your house Out of Foreclosure?
They will give you at most 50 percent of your equity.
That depends upon what you mean by a “fair price”. If you overpaid for your house, and you took out a 100% financing loan, and now the loan balance is worth more than the house, you will not find a buyer who will pay more than what the market will bear. If you owe a bunch more that what the house is worth, and you can’t make the payments, just mail the keys to the bank.
Look at the comps in your area. A good resource is Craigslist or Realtor.com. That should give you an idea of what it’s worth. Then confirm w/ your lender the loan balance. If you are way upside down (meaning you owe way more that the house is worth), and you hare having a hard time making the payments, it’s probably over. However, if you can sell it for more than the loan value, do so, payoff the loan, and salvage your credit.
You need to find a real company that has real investors. The problem today is everyone thinks they know what they are doing and start a company right up without thinking about the consequences. If you have at 30% equity in your home you will have honest investors seriously looking into buying your home. Otherwise, you have all the rest of the people who just try to make a quick buck off someone who doesn’t understand the process and unfortunately you are not the only person.
Most private investors will offer up to 65-70% of your home value. Those guys are pretty straight forward. If you owe less than 65% of the value on your home a deal is workable.
If you don’t have that much equity in your home the only other alternative is a “short sell”. You negotiate with the bank to accept less than what is owed on the loan. The bank would rather lose a few grand this way than foreclose on the property and incur costs selling it themselves. The amount of discount varies (it’s not 50% off or anything). If you have 10% equity in your home maybe you can negotiate another 10% off from the bank. 20% below value should attract some buyers.
The “foreclosure bailout” guys you should run from are the guys who offer to “get you current” with your mortgage and “lease it back” to you for a year. A lot of people with equity fall for this one… they charge you huge fees and slap that onto the balance of your loan. You sign the deed over to the “investor” who is now your landlord. After a year you’re supposed to repurchase the home back from them at a set price. Problem is that foreclosure is still on your credit and if you don’t qualify for a new loan (which you probably won’t given the state of the loan market right now) they get your house.
If the house is in foreclosure, they can’t buy it from the homeowner. They have to deal with the lender.
There are legit people who will buy, but at a fair price, well that’s not going to happen. Investors make money off of peoples misfortunes.
No. Investors are looking for bargains or sellers highly motivated to sell at well below market value.
Here is the skinny on your question:
You are in foreclosure so the “bail out person” is hoping for a wholesale price on your home which would be a few thousand over what you owe. They intend on fixing/updating the residence and selling for slightly less than or at current market price. (have you seen the flip this house shows…same idea)
If you are nearing foreclosure, it is important to cut your losses and sell the house as fast as possible. You are not going to get market value, but somewhere around 50-85% of the market value depending on what needs to be done.
My advice here is from experience……Take what ever the offer is and run……..a foreclosure will haunt you for 10 years….trust me!