If you’re a victim of the current economy and a homeowner, it’s likely that you’re feeling quite a crunch right now. In fact, more and more homeowners are precariously walking the thin line between foreclosure and solvency. The economy, while showing some signs of a minor rally, is not sufficient for many businesses and, thus, hours and jobs have been slashed mercilessly. This leaves quite a few homeowners wondering how they’ll protect their credit rating if they are forced into foreclosure. What options do you have? Actually, cash for home sales might hold the answer to your needs.Find expert advice about 123closedhouse.com.
What are cash for home sales? How do they work? First, you’ll need to understand the difference between these types of sales and standard home sales. While the difference is not tremendous, it is present. You will find several different types of sales in this area. One of the most common types of sales is the short sale. This can be an incredible boon for homeowners facing a financial crunch.
What will happen with a short sale is that a real estate investor will agree to purchase your home for a specific amount of money above the remaining balance of your mortgage. While this will not be the full “street” value of your home, it will give you some cash in hand. The purchaser will then require your authorization to speak with the lender (the bank that issued your mortgage). When the buyer speaks with the lender, they will deal with the loss mitigation department and inform them of the need for a short sale.
Basically, what happens with this cash for home sale is that the lender discounts the amount of the loan for the purchaser, who then pays off the mortgage and the home is placed in his or her name, freeing you from your ties to the property. While this might leave you without all the equity you’ve built up within your home, desperate times call for desperate measures. Obviously, this can be of incredible benefit to homeowners struggling to make their payments and faced with foreclosure.
Another type of home sale is called Subject To; in this type of investing, your name will remain on the loan, but the home will actually be owned by an investor. The investor will be the one paying the mortgage payments and eventually your name will come off the loan (usually only a few months) when the investor sells the property or decides to keep it as a long-term investment option.