HAs anyone heard about the "we buy your house for cash" companies?

Question

I want to get rid of my house fast. I cant afford it and I cant get it refinanced. I have good credit but I dont make enough money for the mortgage companies to want to refinance me. I am relocating in August and the house market it bad here so I dont have time to sell my house. I was gonna rent it out but my mortgage is too high and I am sure no one will want to rent it out.

Answer 1

Before you rush out and have a fire sale at your home there are several things that you can do to save a bad situation from going to a worse situation. There are other options that the others fail to mention.

#1 Lease with an option to buy.

This way you lease your house to someone for a little higher than the regular rent in your neighborhood. The person you are leasing to take all the responsibility of lawn care, minor maintenace on the property. You are able to get earnest money down like between $5000.00 to $10,000.00 for this transaction. You might also credit a small portion of the rent since it will be a little high toward the down payment of the house, once they exercise their option, if they exerecise their option.

#2 Sell with seller carry back of a 2nd mortgage

You have indicated you can not get your property refinance. This way you become the bank. Under this method you sell your house to a buyer that will give you a down payment say 20%. W will discuss figures later. Now lets deal with a sample of what I am talking about here.

Say for the sake of this argument that your house as it stands presently it is valued at $225,000.00. You currently have a mortgage on the property of $120,000.00 and the monthly payments are $1025.00. The prospective buyer is able to give you 20% as a down payment which equals out to $45,000.00.
Now you have to add the existing mortgage mount of $120,000.00 and the down payment together which equals $165,000.00. Now we subtract what is owed on the property and the down payment from the value of the property which equals $65,000 worth of equity that has to be paid. You can take the $45,000 down and carry a 2nd mortgage note of $60,000.00. You will have to determine an interest rate and the number of years you would want to amortize this mortgage. Most of us that carry 2nd mortgage look at the guys credit and determine from that what the rate would be.The amorization would normally be 30/15 that is amortized for 30 years and the buyer would have to pay you the complete loan on or before 15 years. You could put 5 or 10 years also, it is up to you. So let's say you carried the note for 30/5. If you charged an interest rate of 8.5 the monthly payments would be $461.35. Now you owe a mortgage to someone else they must pay that also. So adding the two mortgages together they would have to come up with a montly payment of $1486.35, which they would send to you no matter where you are. You would keep the $461.35 each month and send the $1025.00 to the mortgage company you are presently paying.
(This the best way)

Now you really don't have to do a lot and it is really not that hard. Once you have found a buyer, draw up a contract with the figures and take this contract to an escrow closing agent, they will draw up the note and and the title company will record it.

If your new buyers fail to pay you. You are required to make the $1025 payment to the mortgage company.

Now after this happen you can then foreclose on the people that purchased your house. Again not to worry there are companies that you can hire to do the foreclosure process for you. It will cost you but you can charge any all fees to the people that purchased the house.

If they fail to cure the foreclosure, you will get the house back or the amount left owed to you if the house is sold at auction. If not the house becomes yours again for you to sell again.

Now if you want to contact one of the companies that will purchase your house from you that is your choice, but these are just two options for you to consider.

People do this everyday. Ask for help if you having problems, but don't take the easy way out and throw your hard earned money down the drain. Fight back and fight hard. Nothing comes easy unless you lay down and allow it to happen.

There are even people that will collect your monthly payments for you. They are called loan servicers. You can authorize them to do the foreclosure on your behalf. They will also forward the amount you owe to the other mortgage company and forward the rest to you.

Now find someone in your area to assist you in selling your property.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

"We Buy Houses for Cash" are a market looking for houses they can invest a little time and money in and turn a big profit... The way you describe your home I am guessing it is newer.
You can try these companies but I would try the "For Sale by Owner" companies too and find out about their commission rates...
Honestly, between now and August you could learn to sell your own house on the market and keep the commission...Try libraries, the Internet...
If you are interested in this I would get real estate agents to come look at the house , get honest appraisal estimations, etc.

This way if you take a loss on the house you do not have to pay a real estate agent commission too...

Hope this helps... Good Luck

Answer 3

Slow Down, this is a huge decision! Any house will sell, if the price is right. Please consult a realtor before calling one of those house-flipping places. Also, call you Mortgage company and see what you can do. The places you are talking about just give you a small amount to take it over, let it sit for a while, and sell it again for a profit. The cheaper they can get it from you the better.

Any realty company can help you. Call them and let them help, you'll get a better deal by far.

Good luck!

Answer 4

Yes, there are such companies, and if the housing market goes "down," they'll continue to prosper! Buy low, sell high, is how they operate. There's one in my area; Parco, Inc. -- they trash up the streets in my area with yellow-and-black "bandit" signs with their phone number -- (717) 920-CASH. Here's how they operate profitably: they take a distressed homeowner, one without enough insight into the rental market or the resale market, buy his/her house for a song, do a "cosmetic" rehab (translation: paint and drywall over all the major electrical, fire hazard and plumbing problems), market the structure albeit falsely, as "completely renovated," and get some sucker to buy it. They continue to ply their trade with impunity in cities where there's an overloaded, under-funded bureaucracy which already has too many zoning and code violations to go after. When there's an electrical fire later, due to 110-year-old knob-and-tube wiring finally having had enough, they bank on the ignorance of the people for coming after them for liability, or maybe there's some fine print in the thing they cajole the unwitting buyer to sign.

Answer 5

They tend to be individuals who have invested in real estate enough to have built a small fortune. They will offer you quite a bit less than what it's worth because they're looking to turn around and sell it for a profit. If you bought it a year ago for $100,000 and owe $95,000 this probably won't work for you. But if you only owe $50,000 and are willing to sell it for $75,000 when it's worth $110,000 just to sell it quickly it will be an easy (if not terribly profitable) solution to your problem.

Or you can hire a good Realtor, put it on the market and price it less than all the others in your neighborhood, and hope it will sell in a month or two because it's priced well.

Good luck!

Answer 6

I would really avoid selling your house through one of these companies. They know people are desperate to sell and use this to buy good properties well below the market rate.

I also saw a report once where people were promised good prices for their properties but had to agree to pay for valuations first. After paying these companies to conduct the valuations the companies would turn them down. So, no sale and you've just paid for a really expensive 'dud' valuation.

Answer 7

I advertise in this manner. The bottom line is that we purchase your home at a 20-30% discount so that we can turn around and sell it for a profit.

If you're in Southern California, I can help. There are so many ways to rid yourself of this house and your issues.

Regards

Answer 8

They will offer you pennies on the dollar for it and what they are willing to pay you may not pay off your mortgage. Price it right and put it on the market with a good REALTOR® in your area and it will sell.

Answer 9

Don't do that !!!!!!!! These are all realtors that will buy your house for 500 and sell it at 5000 .Just look upon the refinance options .Write the details at [e-mail] .
regards,
kish
480.751.4125
Loan Officer