Another way out of foreclosure is to sell your home to a real estate investor. If you can do this before the foreclosure process is complete, you’ll be able to pay back your lender and ultimately save your credit report. However, do not expect to make as much money by selling to a real estate investor because they typically only offer a discounted price. But if you see no other way out of your situation, then you’ll gladly accept some money for your home versus no money at all.
Real estate investors are in the business of purchasing homes for low prices and then flipping them for a profit. In many cases, they are purchasing homes which need repairs or renovations done to them. The investors will make the necessary repairs or renovations after purchasing the home so that they can make it marketable at a higher value.
Now, why do homeowners sell to investors for less money? Well, there are a couple of reasons for this. First, it is much quicker to sell your home to a real estate investor because there is no marketing or waiting period. You don’t need to contact a realtor and list your property for 12 months before you find a buyer. There is no showing property or answering questions of several different potential buyers. Instead, you can sell to an investor who’ll pay cash for your home within a week.
Closings happen much faster when selling to an investor. They don’t need to wait for months to do lengthy inspections and repair work. Although an investor does one inspection before they purchase a house, all the repair work is done after they purchase it for a lower price. Homeowners are not expected to make any repairs for the investor. Therefore, you won’t be required to spend money on repairs before you sell your home. The real estate investor is happy to purchase your home in as-is condition.
The kind of homeowners who turn to real estate investors is those who must get away quickly. You could be in such a tough financial situation where waiting months to sell your home is no longer an option. After all, the longer you retain ownership of your property, the longer you’ll be responsible for the taxes, HOA, utilities, and other related expenses of it. Even if you lose money on the value of your home by selling to an investor, it could still be better than having to pay all these expenses each month.
You really need to weigh the pros and cons of selling to an investor versus keeping the house and selling the traditional way with a realtor. If you’re facing foreclosure and the bank is just about ready to take over ownership of your property, then you better sell to a real estate investor soon or else you’ll have no home left to sell. Then all the money of your initial investment into the home will be lost forever. Isn’t it better to at least get some money back for your home rather than none?
For this reason, selling to a real estate investor is the only logical decision for any homeowner facing foreclosure without any other way out of it.