Month: September 2020

Sometimes, due to unforeseen life events, it can become impossible to pay all your bills. If your house has a tax lien on it, you might want to sell it. However, you may need to use different strategies to sell a house with a tax lien.

If you want to sell distressed property in Florida, consider reaching out to cash home buyers in Tampa, Orlando, Winter Park and Melbourne.

What Is a Tax Lien?

A tax lien is a type of property lien. It means that the filer (in this case, the Florida Revenue Service) gains legal access to your property, and is usually the first step in a foreclosure.

There are several steps before the Florida Revenue Service (FRS) files a lien on your property. If you don’t file a tax return or don’t make a payment, they will send you a Notice of Delinquency.

If you don’t pay on time or don’t pay enough, they will send a bill (a Notice of Amount Due).

And, if you don’t pay your tax bill within 90 days, the FRS will take further actions, including filing a lien. This lien will remain until you either dispute it or pay it off. For many, the only way to come up with enough money is to sell their property.

Types of Property Liens

There are two types of liens in Florida: voluntary and involuntary. Within these categories are several subcategories.

Voluntary liens cover things like mortgages or other agreements that the borrower agreements to voluntarily. These types of liens are common and don’t have much of an effect when selling a house. However, you will probably have to pay off your mortgage before closing.

Involuntary liens are measures taken by the lender when the borrower hasn’t paid their debt. The type of debt determines their category and include:

• Property Tax Liens: Sometimes, your lender will pay your property taxes and add them to your mortgage. If they don’t, the government of Florida can put a lien on your house. Often, this means you will have to sell your home to pay your property taxes.
• IRS Liens: If you owe substantial back taxes, the IRS can place a lien on your property, including your home or car, and force a sale.
• Mechanic’s Liens: If you don’t pay a contractor for work they did on your house, they can file a lien on your home. If their lawsuit is successful, they can force you to sell your house to pay their bill.
• Judgment Liens: If a creditor sues you in court and wins, they can place a lien on your property.
• Child Support Liens: If you don’t pay your child support, your ex-spouse may place a lien on your property. It will remain until you pay or sell your house.

If you are currently facing any of these liens, you might want to consider selling your house or property to avoid foreclosure and a bad credit rating. You can use the profits from the sale to pay off your lien.

Tips For Selling a House With a Lien

Do Your Math

To evaluate offers, you need first to know exactly how much your house is worth. Without an impartial evaluation, you might put your asking price too low or too high, which will affect any offers you get.

Remember that your back taxes should come out of your profit. To complete your sale, you will have to ensure that you pay all your taxes first.

For example, if your mortgage was $120,000, and you have 100,000 left, and $15,000 in back taxes, you’ll have to use the money from the sale to pay the rest of the mortgage and taxes, for a total of $115,000.

Keep Your Own Records

Write down everything. A written record protects you by providing some proof of conversations. After a verbal discussion, send an email confirming any agreements.

Keep a physical file and digital backups of any information regarding your back taxes, mortgage, assessment, or home sale.

Pay Your Tax Lien Before Closing

You can start selling your house with an outstanding tax lien, but you’ll need to pay off the taxes before closing. Use the money from your sale to cover the tax lien.

Research Your Buyers

Make sure your buyers are who they say they are. Confirm their financial records and business information. It’s worth doing this step before getting too far along in the negotiations. You don’t want to waste valuable time with a flaky buyer.

Honesty is the Best Policy

Don’t lie to your buyers about the state of your house. They will eventually learn of any problems, and if that disclosure happens too late, they might back out of the deal. It’s best to lay everything out on the table before the negotiations begin.

Sell To a Cash Home Buyer

Listing with a real estate agent involves a commission fee and could take months. Instead, consider selling your home to an experienced cash home buyer. These companies can offer you money upfront quickly, allowing you to pay off your back taxes sooner.

Why Meli?

If you want to sell a house with a tax lien in central Florida, Meli can walk you through the whole process.

We have worked with many distressed properties and are familiar with the legal requirements and processes that accompany this kind of sale.

Many times, homeowners with tax liens want to sell their property as fast as possible. Meli can help with that.

We offer a quick and straightforward process. Call us at 407-338-4183, or email us at evan@melihomes.com, or reach out using our contact form, and we’ll discuss your home in a free initial consultation. From there, we’ll help you find the best solution for your home. We may make an offer to buy your home with its problems or fix its problems and list it for you. Or, we can simply provide you with additional consultation for a fee.

Call or message Meli today to receive a free initial consultation for your home!

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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More than half a million homes face foreclosure annually in the United States. In 2019 Florida had the third-highest foreclosures in the nation. If your home in Central Florida has become an emotional or financial burden, consider working with companies that buy distressed properties for a hassle-free and quick cash transaction.

Examples of a distressed home include:

• Defaulting on your mortgage payments
• Divorce or other unexpected life events
• Facing bankruptcy
• Financial distress such as medical bills
• Tax liens of judgements on your home
• Inability to afford major repairs
• Damage from natural disasters
• Inherited property in probate
• Relocation or job transfer
• Retirement or downsizing
• Liquidating assets to pay bills

When you sell your distressed property or as-is home to a distressed home buyer, you should expect to sell your home for a discount, but you can avoid costly repairs and other complications. If you need cash quickly or want to start over with a clean slate, there are many great reasons to sell your home to a distressed home buyer besides convenience.  

A Distressed Property Buyer Will Purchase Your Home If You Can’t Get An Appraisal

A home appraisal is integral to the house sale and is an unbiased professional opinion of its value. An appraisal typically appeases the lender – such as a bank – funding a mortgage, but it isn’t required for a cash sale. 

A distressed home price is typically lower than fair market value due to the cost of repairs and no additional seller fees. If your home is in a state of disrepair and can’t be appraised or listed on the open market because it’s structurally unsafe or has been condemned, a distressed property buyer that buys a home in any condition is an excellent alternative to a traditional real estate sale.

You Don’t Need To Make Repairs

Making repairs is always a good idea if you are going to put your house on the open market. It can increase your home’s value, and some repairs can provide a significant return on investment.

However, if you are seeking to shift an unwanted property as quickly as possible, have a limited budget, or lack the emotional energy to tackle extensive repairs like a significant leak, mold, pest infestation, or roof replacement, an as-is cash home buyer can save you the hassle and cost of renovating your home.

You Don’t Have To Put Your Home On The Market

When you are selling a distressed home, your goal is to unload the property as quickly as possible. If you are facing foreclosure, you don’t have the luxury of time to get your property home sale-ready.

Selling to a distressed property buyer enables you to get an offer immediately and guarantees you cash so you can avoid foreclosure and a poor credit rating.

No Staging or Open Houses

When you sell your distressed home for cash, you are bypassing the traditional listing process in exchange for convenience and a quick sale. You can skip the fuss of staging and hosting open houses and the stress of keeping your home in perfect condition until it sells.

No Contingencies

Conventional home sales come with contingencies such as appraisals, inspections, and possibly the home buyer selling their other home before buying yours. Every contingency adds another level of uncertainty to your situation and the possibility of the deal falling through.

Distressed property buyers do their due diligence and make an offer based on their findings, so there is no negotiating or haggling over repairs or the closing date.

Faster Closing and No Closing Costs

Cash deals can be processed in a matter of days instead of weeks. The average home purchase on the open market took 46 days in June 2020. In a typical home sale, you are required to pay around 2% of closing costs. When you sell to a distressed property buyer, there are no closing costs and no realtor fees. 

Why Choose Distressed Property Buyers?

A distressed property buyer will purchase your distressed home outright, without any lender financing so you can close the deal in less than 30 days. If you find yourself in a situation where you can no longer afford your property due to unforeseen circumstances or your home needs some major tender loving care, you do have options. By selling your home to a distressed property buyer, you are alleviating the uncertainty of you and your family’s future.  

Choose Meli Homes in Central Florida

If you are among the growing number of distressed homes in Melbourne, Tampa, Orlando, Daytona, St. Cloud, or Kissimmee, and need to sell your distressed home in Florida, rather than list your home on the open market with a realtor, contact Meli for a fair, no-obligation cash offer. Sell as-is without listing your home on the market or making repairs, removing the hassle, stress, and expense from the selling process. 

Our personalized and transparent approach sets us apart from our competition. When we buy distressed houses, we make selling your property efficient and simple and provide peace of mind while supporting you through the process. And we work on your timeline to complete the closing.   

At Meli, we buy distressed homes of all kinds in Central Florida: single-family homes, mobile homes, multi-family homes, and condominiums.

Contact us at (407) 338-4183, so we can explain how the process works and schedule a walkthrough of your property. Once a representative from our team completes the walkthrough, you can expect a same-day no-obligation offer.

We want to provide you with the best offer available so you can get the most value from your property. When determining the price we look at the existing market conditions, location of the property, its current condition, and the repairs needed. 

If you agree to the offer, we will begin the selling process, clearing up any tax liens, judgments, and title issues. Our team handles all the paperwork, removing the burden from your shoulders. You receive 100% of our contract offer, so you won’t have to worry about any hidden fees.  

If you are looking at alternatives to resolve your distressed home sale problems, contact Meli today.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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You might have heard about companies that purchase distressed properties as-is. But what is a distressed property? The term doesn’t only refer to the state of the house or property. It can also refer to the owners financial obligations.

If you’re considering selling a distressed property in Tampa, Orlando or Melbourne, you need to determine first if your property meets Florida’s guidelines.

Distressed Property Definition

A property becomes distressed when it is foreclosed or put up for sale by the lender, becomes embroiled in complicated legal battles, or falls into disrepair.

A distressed property can refer to a home or land. Often, companies who can afford to pay the homeowner in full purchase these properties.

Reasons Why Properties Become Distressed

There are many reasons why property might become distressed.

• Financial Issues: If a homeowner encounters economic instability or difficulties, they might be unable to continue paying their mortgage payments. When this occurs, the owner may try to sell their distressed property quickly to avoid foreclosure.

• Disrepair: Usually due to financial issues, this can occur when homes or properties are neglected. Another common cause of disrepair is damage caused by natural disasters like hurricanes, flooding, or fires. If the homeowner cannot afford to fix the home, they might want to sell it as a distressed property.
  Additionally, homes can also fall into disrepair due to problems with construction. If a homeowner encounters financial issues during a remodel, they may need to pause the construction mid-project. Sometimes, they cannot recover financially and want to sell their home with a half-finished bathroom or kitchen.

• Legal Issues: If a homeowner is facing legal ramifications, they might want to quickly sell their home. If they have failed to bring the house up to code or violated other regulations, they will receive hefty fines. Often, they are unable to pay these fines and eventually need to sell the house quickly.

• Divorce: Often, divorcing couples wish to sell their jointly owned house to divide their assets. It sometimes becomes too expensive for one person to afford on their own.

• Death of the Owners: If one owner passes away, the other might be unable to afford the mortgage payments on their own. In this case, the remaining owner may try to sell before foreclosure or simply default on the loan.
  If all owners pass away, their heirs may be unable or want to continue paying the mortgage, necessitating a quick sale. The home could also become stuck in probate, making it challenging to sell.

• Moving: When a homeowner needs to move quickly, they often want to sell their home fast. Depending on the real estate market, sometimes it can take months to sell a property.
  If a homeowner wants to buy a new property in their new county or state, they might want to sell their current house quickly.

Classifications of Distressed Property

There are three main types of distressed homes. If you want to sell distressed property in Florida, you’ll need to choose your tactics based on your situation.

• Real Estate Owned (REO)
  A foreclosure occurs when a homeowner defaults on their mortgage. The process begins when the bank issues a Notice of Sale (NOS).
  A distressed property that has already foreclosed and is owned by the lender, usually a bank, is an REO. Often, the bank will sell these properties through auctions.
• Short Sale Properties
  A short sale is an alternative to foreclosure and usually happens in the pre-foreclosure stage. Before issuing a NOS, the bank will send a Notice of Default to the property owner. Typically, they then have three months to pay the mortgage or come to an agreement with the lender.
  If they cannot keep paying the mortgage, the homeowner may propose a short sale to the lender. This process means the homeowner avoids foreclosure and the lender doesn’t have to sell the house themselves.
• Abandoned or Vacant Property
  These properties are usually in disrepair, and sometimes it can be hard to find the owner.

Selling Your Distressed Property

If you have received a NOS or are dealing with a complicated legal situation, you might be wondering how to sell a distressed property. You can do a few things that can help you get the best price for your property.

• Fix Structural Problems
  If you can afford it, fix any structural problems before the appraisal. As a result, you may boost your asking price, meaning you’ll get better offers.
• Confirm Your Buyer’s Information
  Don’t believe everything your buyer tells you. Even if they are a trusted cash-for-home buyer in Florida, you should verify their financial information independently.
• Keep Detailed Written Records
  A verbal agreement can open you up to problems later. Because of this, make sure everything is written down, and keep a copy. Even if you think it’s not essential, it’s better to have it and not need it.
• Full Disclosure
  Be honest with your buyers about any problems with the property. It’s better to lay everything out on the table at the start, rather than have your buyers back out at the last minute due to undisclosed issues.

Work With an Experienced Buyer

An experienced cash home buyer can speed up the process of selling your home significantly. Individual buyers will be more likely to make an offer and be able to pay you in full.

If you’re looking for help with your home in Tampa, Orlando or Melbourne, Meli can help you find the right solution for your home! That may be selling your home to a home buyer like Meli, solving your homes issues and listing it on the market, or something else! Whatever the case, we’ll help find the right solution for you.

Contact Meli Today

Start the process of selling your distressed property today. Call us at 407-338-4183, email us at evan@melihomes.com, or reach out using our contact form with details about your property. Let us help you resolve your distressed home issues.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.

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