We Buy Houses Explained
You see the "We Buy Houses" signs everywhere, but who are these people who "buy houses"? Well, we are! We're not as big as the other guys, but we are still able to help people out of very awkward situations.
Is this you?
Your Option? GET RID OF THE GORILLA! But what's the best way to make a gorilla disappear nicely, quickly and quietly?
1) LET THE GORILLA STARVE:
FORECLOSURE / BANKRUPTCY
Letting your house fall into foreclosure should be the LAST option you ever consider. There are so many ramifications to this procedure not to mention it is just a very stressful thing to go through. The bank takes your house, you get kicked out and any equity you have in the house is gone. Your financial history is now tainted and the foreclosure will be on the books for 7-10 years preventing you from getting another loan for a home, getting a loan for a car, and sometimes even getting some jobs and some rental units.
2) SELL THE GORILLA TO ANOTHER OWNER:
LIST YOUR HOUSE WITH A REALTOR
You're told that it's a "seller's market" and that inventory is low and people will be scrambling to make offers on your house. Even a possible bidding war could happen! But did you know that even in a "hot" market a home can take up to 90 days or more to sell because your potential buyers are having a really hard time trying to get approved for loans. They have to jump through massive hoops to get qualified and a lot of them won't, then that's another 3 months of you trying to make payments and the bank sending nasty letters and you getting closer to the F word and you are no closer to selling. On top of that, did you know that in a traditional "retail" housing market, it will most probably be you that has to pay the realtor commissions on both sides and the closing costs? That can be up to 10% of the sales price! So, if your house is listed for $120,000, you may lose $12,000 right off the top in fees. And what if your buyer's lender appraises the house at less than what you still owe on your loan? Then that is when you could consider a "short sale"....
3) UNDER-SELL THE GORILLA
THE SHORT SALE
A short sale is when you can't sell your house for at least the amount or more that you still owe on your loan. So, you bought the house 3 years ago and your loan was at $114K. You've been making payments and have about $109,000 left to pay. Now, someone comes along and they can only get a loan based on their bank's appraisal for $100K (guess your neighborhood sucks now). Well, that won't pay off your bank loan or put money in your pocket for what you've already spent! So, now your realtor has to "fight" with your lender to get you approved to move forward with a short sale and history tells us that can take 6-18 months, and they only get approved 50% of the time! And all the while your payments aren't being made and you're getting further and further behind.....
4) SELL THE GORILLA QUICKLY:
SELL FOR CASH
A lot of investors out there will offer you cash on your house. That's a fast easy simple transaction and usually the buyer pays for the closing costs! We like these transactions a lot especially if you have a lot of equity in your house. BUT...we usually want a deal and industry standard that most cash buyers abide by is that we want your house for 60-70% of Retail Market Value. Your house is worth $120K, they want it for $84K...that still doesn't pay for what's left on your loan....
5) KEEP THE GORILLA IN ITS CAGE AND LET SOMEONE ELSE FEED IT:
KEEP YOUR BANK LOAN IN PLACE / OWNER FINANCE
So there you are, a house that may be "under-water", little or no equity, behind in payments, and buyers who can't get loans. Well, let us buy your house for full retail market value AND let us take over your loan! That's right, you get a fair market price for your home, you give us the deed, and we start making the payments. You just walk away. No more monthly mortgage payments or monthly property taxes or home repairs to worry about. Oh, and we'll pay the closing costs and commissions. This is what some people call a mortgage assignment or wrap. It's like you are owner financing the home sale. It's totally legal and it's been common practice in commercial realty for years.
Benefits to you?
Call me if you want to discuss these options further - Naomi (512)903-0317
I understand that this can be an embarrassing, difficult time for you and your family so if you would rather reach out via email please feel free.