SELL with Realtor
You can list you house with a Realtor and might get close to full retail market value. But, if you owe more than you can sell it for retail, you may have to do a Short Sale (see below) and get no equity back. This just saves your credit, but a Short Sale will remain on your credit report for 2 - 4 years.
The problem is that the housing market is flooded with other foreclosures, and many houses have sat on the retail market for over 180 days with no sale. You don't have this kind of time with a foreclosure. You may have less than a month to sale. (less than 21 days depending on pre-foreclosure)
Also, you have these issues:
- Get the house ready to show.
- People will be coming and going now and then.
- Buyer may demand some repairs at your expense.
- You pray that the buyers funding goes through.
- You have to pay the Realtors 6% commissions.
You will be under a lot of stress! If the Realtor can't sell your house in time, you will loose it and any equity you have built-up. The Realtor looses nothing but their time. Call and Investor QUICK!.
SELL to Investor
An Investor will make you a cash offer to purchase your house quickly. But, if you owe more than you can sell it for retail, you may have to do a Short Sale (see below)
and get no equity back. This just saves your credit, but a Short Sale will remain on your credit report for 2 - 4 years. The bank/mortgage company does not want you to receive any funds from a Short Sale and the process may take up to 9 months for approval.
With an Investor, you will get:
- Fast closing. (loan is out of your name)
- Stops foreclosure quickly and easily.
- Sell in "as-is" condition.
- Paid all cash or certified funds.
- Moving assistance.
In order for the Investor to purchase your house "as-is", he may require an inspection, title search, contractor quotes for repairs, deal with the "Loss Mitigation" department, and at the same time possibly find a future buyer for the house after repairs. These factors take additional time, but Investors move quick and normally can close within 2- 5 days depending on your agreement and situation. This does not apply to Short Sales.
Of course, the Investor's cash offer is going to be way below market value. He has assumed many issues with the house, has to finance repairs, cover utility costs, pay interest on any loans, pay for marketing, and pay monthly notes until the house is resold or rented.
The Investor may have a house that you can rent. There are usury laws that prevent you from renting your original house. Also, you might ask about a Lease Option (see below)
, which can help you build back your credit and buy the rent house over time.
To sell to an investor now, click: I Want to Sell My House Fast
You might want to consider leasing (renting) your house out, and letting the renter payments cover your mortgage payments. You should only consider this, if you could live with another family member or find a less expensive room, apartment or house. Being a landlord is not an easy task. You will have to make repairs as needed, renters do damage to a house, you need to keep insurance, and renters don't pay on time.
You might want to offer a Lease Option (see below) to a renter. This offers the renter first option to buy the house at a later date, on an agreed amount, if their credit allows. You should get a large non-refundable option fee upfront, that goes toward the cost of the house at sale, if they choose to buy. If the renter chooses not to buy at a later date and moves out, the option fee is waive and is yours to keep.
You could rent a room in your house to a boarder, which will increase your income (check Deed Restrictions).
Be careful and screen your applicants.
The Lease Option fee or Boarder solution can help with your immediate financing problem. Make sure you have cleared up the foreclosure issue by some means.