my friend is in financial trouble and wants to sell her house before it gets foreclosed on....we see ads for these places everywhere and I wanted to know if they are legit..I'm sure she doesn't want her credit messed up more
2007-05-04 09:44:35 · 5 answers · asked by sprkl12000 2 in Business & Finance ➔ Renting & Real Estate
It really depends on what they do to bail her out. Most of those companies offer to buy the home well below market value and ask the bank to accept a short sale. A short sale could have an adverse affect on her credit.
Make sure she tries to sell it via normal routes before going down the “we buy houses" road.
2007-05-04 10:07:40 · answer #1 · answered by jimmy dean 3 · 0⤊ 0⤋
Selling a property does not affect credit. If your friend is currently behind in their mortgage payment that will remain on their credit report.
What they might try and do is keep the property from going into foreclosure and sell it to this company.
As long as they go through the proper escrows, title and other companies that assist in the closing of the property, this company should be good.
You have to remember this company is in business to make money and will try and get this property for the least amount of money they can. So make sure that the offer will pay the mortgage, closing cost and if they can get money in their hand at the closing.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-05-04 10:08:51 · answer #2 · answered by loanmasterone 7 · 1⤊ 0⤋
These services refer you to an investor or investment company which will purchase your home at a relatively low price, which is usually based on a percentage of the estimated market price after any repairs (ARV). The investor hopes to renovate or sell your home for a premium, and will sometimes offer to allow you to continue living in your home as a renter.
The benefit of this is that the investor will purchase your home in cash, allowing the sale to close quickly after which the proceeds can be used to pay off your mortgage before forclosure. In turn, you would avoid foreclosure which is very damaging to your credit rating.
The drawback is that the offer will usually be relatively low, in order for the investor to limit his/her risk in case the property does not sell immediately after the renovation. Usually, around 60% of the after repair value depending on the condition of your home and the amount of your mortgage equity. The investor will usually ask you up front, what is the minimum price you will accept for your home? If they can't do the deal, you'll know at the beginning.
So the costs are relatively high, but it helps you avoid foreclosure.
2007-05-04 15:59:34 · answer #3 · answered by neosoulbrotha2002 1 · 0⤊ 0⤋
Those "We Buy Houses" deals are usually people that buy homes that are pre-foreclosure... it will not affect your creidt for selling your home, but it will affect your credit if she continues to let the loan remain in default. The earlier she sells the better she will be.
2007-05-04 16:12:01 · answer #4 · answered by lindsaytejeda 2 · 0⤊ 0⤋
selling your home won't change your credit rating in any way.
2007-05-04 09:49:45 · answer #5 · answered by dk 3 · 0⤊ 0⤋