Month: July 2021

For your ease, we have provided a transcript of the Distressed Home Q&A Recording.

Hey, this is Evan with Simple Sale Central Florida back again for our monthly Q&A for the month of July. I just wanted to take a second to introduce the company. We buy distressed residential properties throughout Central Florida, including Tampa Bay to Orlando and the Space Coast, anywhere as far north as Ocala, even up to Gainesville and south, as far south as Poinciana or even further south.

We focus on distressed properties that have some form of issue, typically a title issue, a probate, liens, judgments, code violations, and things of that nature. And we work to bring transparency and accountability to distressed home sales. We take a difficult situation and really work hard to try to make it a stress-free situation for the client. Let’s go ahead and get started.

1. I just found out my home needs to go through probate. When can I sell it?

In the probate process, there’s various steps that you have to go through. Ultimately, when the judge tells you you can sell the property, you can, but you have to file for probate and go through those steps. This can take anywhere from 30-90 days, depending. When the judge says “Okay, everything’s clear. You can sell this property,” it will essentially be a paper that says that the heirs are the owners of this property, and they have the right to sell it.

You should have an attorney guiding you through the process. Don’t try to do it on your own. I guess it’s possible, but it’s extremely difficult for someone that’s not in that business.

Read More: What to Expect When Selling a House in Probate

2. Can I sell a house if it’s not up to code?

You’d typically only be able to sell a property that isn’t up to code to a cash buyer. That’s someone that’s going to come in and pay in full, typically an investor. If the property isn’t up to code, you’re not going to be able to get a mortgage through a bank. Your standard retail-type homebuyer wouldn’t be a buyer in that situation until it was brought up to code. You could also try to bring it up to code yourself. That’s always an option; you just have to get a contractor to figure out what the issues are and bring it up to code. If you don’t want to do that, then you’d ultimately sell it to an investor that will buy it without a mortgage.

You can absolutely sell a house that’s not up to code. We buy properties all the time that have various types of code issues: bad electrical, roof, plumbing. Anything like that we’ve bought, and other investors will buy as well.

Read More: Can You Sell a House with Code Violations?

3. What are distressed homes?

We define distressed homes as a property that has some form of an issue. It can be a title issue: probate, code violation, liens, judgments. It can be a foreclosure. That’s commonly how people describe distressed, is that it’s in foreclosure. We don’t necessarily handle a ton of foreclosures, but that’s commonly a way to describe a foreclosure property. A distressed property can also be a property that needs excessive repairs.

A distressed property doesn’t have to always appear distressed. It could be a property that has a bunch of liens on it. Maybe it’s a beautiful house, but it has tons of liens on it. In that scenario, we would define that as a distressed property.

Read More: What is a Distressed Property?

4. What kinds of companies buy distressed properties?

There are a lot of companies out there that will buy a distressed property if it needs excessive repairs. If the property just needs a full rehab, then there’s a lot of companies that will buy it. There’s a very big market out there. If it’s distressed because there’s some tough liens or judgments, or things like that, then there aren’t that many. It depends on what type of lien there is, but there aren’t nearly as many buyers.

Liens can present a lot of risk for the buyer. For example, you have $100,000 in liens on a property worth $100,000, let’s say you buy it for $50,000. You’re already under water on the property if you can’t negotiate those liens down. That’s the risk buyers end up taking. We commonly take that type of risk if we think it’s something we can pull off over time. We’ll do it, and a lot of other companies won’t.

Read More: 5 Things to Know About Companies That Buy Distressed Properties

5. Is it possible to sell a home with a lien on it?

It is possible to sell a house with a lien. It really just depends. If the lien is small and not complicated, it would probably be solved or paid off at closing. For things that are complicated and expensive, it’s going to be hard to sell the house. Simple Sale Central Florida will buy it, but a lot of companies won’t. You’re very limited on buyers because of risks that can come with buying these properties, but it is possible.

If it’s a simple lien then it probably shouldn’t be a big deal for most buyers. What you can find is that they may not actually understand how to solve some of the issues. This can make it complicated to close because the buyer doesn’t know that their title company doesn’t understand liens very well. And so you can get strung along for a long period of time while you’re waiting for the buyer and the title company to try to figure out the lien situation.

I would say you’d want to work with someone that’s experienced, focused, and really specializes in these things.

Read More: Can You Sell a House With a Lien on it?

6. Can I sell my house before it’s foreclosed?

Yes, of course. You can really sell it up to the day before closing actually. I don’t think we’ve ever bought one just before closing, but it is possible. In those scenarios, though, you have to sell it for cash to someone that knows what they’re doing and understands the timelines associated. Someone that’s organized and knows the foreclosure date, and stays focused on getting it done before that day or, yeah, you’re going to end up getting foreclosed on.

You can definitely do it, just make sure that you’re working with someone that’s credible and able to get it done. If you work with someone that’s unfocused and doesn’t understand the situation, you could get into trouble.

Read More: Can You Sell Your Home Before Foreclosure?

7. Is it possible to sell my home in probate in Florida?

Yes, it is. What people sometimes don’t understand is you can go on a contract to sell the property before the probate is over.

We’ve had properties under contract months before the probate was finished. As soon as the judge gave the new heirs permission to own and sell the property, we’d close on it. You don’t have to wait until the judge says that you own the property. You can actually sell it before then in the sense that you can have a buyer waiting and as soon as you get the probate approved, then you can sell and move on.

8. I have an IRS tax lien on my home. Can you help me?

Yes, of course. We actually just finished helping out a couple with their IRS tax lien situation. I think everyone was reasonably happy with the results, as much as you can be in that situation. They were able to walk away and were forgiven some of their tax liens and they were able to move on. They were in a situation where they were hindered by it, and through some hard work by a trusted attorney and the sellers, we were able to get through it, have a successful closing, and allow them to move on unburdened by those tax liens.

We definitely can help you do that. We are experienced in handling homes with all kinds of liens and shouldn’t have any issues helping you. I would love to hear about what’s going on.

9. What are the benefits of working with a cash home buyer?

Cash home buyers can buy properties that have code issues, title issues, or any property quickly. A cash buyer isn’t going to be able to pay as much as a retail buyer because retail buyers are mortgaging property, but the cash buyer is going to be able to provide you with the ability to sell property that wouldn’t be able to be sold to a retail buyer. They’re also more convenient and fast. They’ll be able to purchase it quickly.

Read More: Why Work With a Cash Home Buyer?

10. I have a home in Winter Park that I need to sell fast. Can you help?

Yes, of course, we buy properties in Winter Park, Orlando, Maitland, Altamonte Springs, anywhere around that area. We’re very interested in purchasing properties, and we can do it very quickly, within a week or two, if needed. Whatever your situation may be, we can try to expedite any process, any lien, probate, whatever.

We can handle legal issues, probates, code violations, liens, title issues, and things of that nature. We’re as experienced and specialized as anyone else in the space, and we’re very confident that we can handle your situation as well.

Wrapping Up

Okay, so any other questions? I don’t see anything in the comments, so I’m going to go ahead and close this out. As always, I really appreciate it. I really appreciate people that watch this and hopefully some of these questions help you get answers to your situation.

We buy distressed properties from Tampa Bay and Bradenton, to Orlando to the Space Coast, Brevard County. We buy distressed properties in all those locations. We’re very experienced in buying them in those locations and we can definitely help you out with your situation. Just give us a call at (407) 338-4183 or you can go through our website, SimpleSaleCentralFlorida.com and fill out your information and we will be able to assist you. So, feel free to reach out any time. All right guys. Thank you.

Homes are a major investment for families, but they can also be a source of financial stress. The costs associated with owning the home can balloon well beyond what you originally budgeted. This is especially true once repairs or homeowner’s association (HOA) fees become a factor.

If your financial situation changes for the worse due to various reasons, it’s easy to fall behind on payments. This is the point your creditor may place a lien on your home.

Can you sell a house with a lien on it? In many cases, you can. However, you will need to find a buyer who is willing to take on dealing with the lien.

Lien Basics

A lien occurs when a creditor or institution you owe money to decides to establish a partial claim to something you own. This can occur with your car, home, or other large property. In cases with large debts, you may be subjected to a general lien that covers all your assets and income.

A lien strictly limits what you can do with the property, and the debts associated with it may also severely affect your credit score. In other words, you may be stuck with little ability to sell the property until existing debts are paid.

Foreclosure is a separate issue from a lien since a lien cannot technically force you out of your home. However, debts that pile up and begin to affect your ability to make mortgage payments could lead to eventual foreclosure.

Keep in mind that a lien comes with legal documentation that must be filed with the appropriate county or local authorities. It usually occurs after other attempts to collect the debt have been exhausted. Both establishing a lien and clearing it takes some time in the courts. 

Although most creditors who place liens are traditional lenders, municipal governments, and HOAs, anyone you legally owe money to can place a lien on your home as well. Failure to pay property taxes, federal income taxes, or HOA fees are a common source of liens since foreclosure is not an option in these cases.

Can You Sell a House With a Lien on it?

If you’re asking, “can I sell my house with a tax lien?” the good news is that you can, but it complicates the sales process. The primary purpose of a lien is to prevent a sale so that the seller can’t take the profit and disappear, leaving their debts unpaid. The creditor who has the lien will lay claim to at least a portion of the home’s sale price.

You also have the option to pay off the debt associated with the lien using a bond or other loan. However, securing this can be difficult if your credit score has already suffered due to the existing debt. Plus, taking out another bond or loan perpetuates the cycle of debt you’re in.

To make matters worse, sorting out the legalities of who is owed can take time if there are multiple creditors. If you believe the lien is legally invalid, challenging it in court may take months or even years. Since liens don’t usually expire for ten years, most homeowners can’t afford to wait for a lien to disappear.

Who Should You Sell To?

Traditional buyers are unlikely to want a home with a lien. If they are first-time homebuyers, their realtor will likely inform them of the time and hassle associated with clearing liens from a property.

Even if a buyer really wants your home, they may not have the luxury of time to wait around. Clearing a lien for a traditional sale may take months, and if the buyer needs to move in sooner than that, the home might not be an option for them.

A company specializing in buying distressed homes for cash is often your best option when selling a home with a lien. Distressed home buyers can cut through the red tape fast and have the financial assets to pay off the lien. In many cases, they will often negotiate with the creditor to lessen the amount of the lien and make it less risky.

A cash home buyer like Meli can close on your home quickly, even if there is a lien. We are used to buying homes as-is and can make you an offer after just a walkthrough. You can avoid the hassle of waiting for mortgage approvals from a lender and maximize your profit from the sale since you won’t need to pay commission to a real estate agent. This makes cash buyers the best option for homeowners who need to get paid and unload the home quickly. 

Partnering With Meli

You need to partner with a reputable home buyer with the knowledge necessary to take your home off your hands, even if it has liens on it. Not all homebuyers can handle these situations with the sensitivity they deserve. 

Meli knows that every home situation is different, and we put the time and energy into giving you the best deal on a tight turnaround. We have a streamlined process that cuts out middlemen and takes care of the difficult behind-the-scenes work for you. Our process usually starts with a no-obligation phone consultation and schedule a walkthrough to get the information we need to make you an offer, usually on the same day.

We typically close sales within 30 days, and in many cases, can even close in 1-2 weeks. We know that the finances of moving can be messy, so we work hard to provide a seamless experience.

We’re happy to chat and see if your home is a good fit for us. Call us today at (407) 305-5008 to give us some basic information and schedule a walkthrough.

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Sometimes circumstances require a homeowner to sell their house as quickly as possible without investing in repairs or upgrades. Whether you’re dealing with a divorce, facing foreclosure, or if you’re looking to pay back creditors by selling a home in probate, it’s often more practical to sell the house in its current condition as a distressed property.

What is a Distressed Property?

A distressed property is a property that is at risk of foreclosure or already is. Most of the time, a property becomes distressed when the owner cannot continue to make payments on the mortgage. This could be due to financial issues or unforeseeable life circumstances.

Property is also considered distressed when a buyer owes more on their mortgage than the home is worth. This is known as an underwater mortgage. That puts the homeowner in the undesirable position of paying down a home that has little to no equity.

If you find yourself in foreclosure or struggling with an underwater mortgage, consider selling your home as-is to a cash home buyer. Selling helps to relieve your financial stress and take the pressure off your situation.

How to Sell a House As-Is

If you are wondering how to sell a house in as-is condition, there are a few things to consider. One option is to list the property yourself. Selling the property independently requires time, research, and further interactions with inspectors and banks. It may also mean you pay for minor repairs or accept a low offer. Another option is to work with a cash home buyer specializing in buying homes in as-is conditions. 

Listing the Property Yourself

If you list the property yourself, there are several details to consider during the process. These include: 

• Listing the home in “as-is” condition and preparing yourself to receive low offers
• Performing a pre-inspection and disclosing everything found during the inspection
• Spending money on high-priority issues like repairing a furnace, addressing mold or water damage, or replacing the roof
• Spending money on cosmetic fixes like paint, carpet, caulking, light or sink fixtures, or replacing burnt-out bulbs

In addition to spending the extra money to repair elements that may cause a safety concern for potential buyers, if you list the property yourself, you need to think about how to attract buyers with your listing in order to sell your home. This is tricky as you want to highlight the positive aspects of the property without misleading buyers. 

To create a marketable listing, bring attention to the best features of your property, such as its location, floor plan, and lot size. Make sure to price your home appropriately by researching the recent selling price of similar homes in the area. Finally, use exciting, relevant keywords in your listing that represent your home accurately and attract buyers. 

Using a Real Estate Agent

Another option when selling a distressed home is to work with a real estate agent. Real estate agents are experts in preparing a home for buyers and can offer you helpful advice on how to get the highest offer, which can be challenging for a home that is visibly in need of repairs or an update. They’ll be able to help you stage the home to maximize its appeal and highlight the best features the property has to offer. However, real estate agents charge a commission for their services, which cuts into your profit on the sale of your distressed home. 

Working With a Cash Home Buyer

If you choose to work with a cash home buyer, the process of selling your distressed home is much more straightforward. In a few easy steps, you can sell your home quickly with minimal effort on your part. 

First, reach out to a reputable cash buyer. They will speak to you about how the process works and ask you about your property. If you decide to move forward, the cash buyer will give you an estimate and schedule a walkthrough of your home. During the walkthrough, the buyer assesses the home’s value and makes you a fair offer within a few hours of the visit. 

You get to review the offer under no obligation, and if you decide to move forward with the sale, the cash home buyer takes care of all the closing paperwork for you. The cash buyer works on their end to ensure that the sale goes smoothly and at a pace that you are happy with.

Why Consider a Cash Home Buyer?

If you’re selling a house in poor condition, it’s worth considering a cash home buyer like Meli Homes. While there are several scenarios where it might be possible to sell your home on the open market without carrying out repairs, like a hot real estate market, most of the time, a traditional buyer or their lender will require a professional home inspection as a condition of sale. Any non-visible issues that these inspections turn up will likely need fixing at your expense before the closing date. 

When your home is distressed and is visibly in need of repairs or an update, it can be challenging to find a regular buyer who’s willing to pay your asking price without any of these renovations. However, a cash home buyer can take an unwanted property off your hands quickly without you investing thousands of dollars in inspections or repairs. 

By selling to a company like Meli that purchases homes in “as-is” condition in Lakeland, Daytona, Cocoa Beach, and other central Florida cities, you alleviate the stress and hassle of showing your home and negotiating with buyers.

At Meli Homes, 85% of our deals close within 30 days from the time you receive our quote. If you’re looking to unload a property quickly without putting any money into it first, a cash home buyer company may be a great option for your circumstances. Meli even works with you to resolve tax liens, and you don’t need to worry about real estate commission or other hidden fees. 

Work With Meli Homes

If you’re a Florida homeowner looking to sell your home in as-is condition, Meli is the solution. To learn more about the process, or to get started, give us a call at (407) 338-4183 or fill out our online form. You can expect to hear back from a representative within 24 hours. 

This article is meant for informational purposes only. This 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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On the day they buy their home, no homeowner envisions themselves in a position where they’re facing foreclosure. But, an unexpected job loss or economic downturn can result in this unfortunate scenario. A home may undergo foreclosure if the mortgage lender exercises their right to sell a property that the buyer has neglected their payments on.

If you’re dealing with the process of foreclosure on your home, there’s still a chance to sell it. You have up until the lender makes a sale at auction or the bank takes possession of the house.

Foreclosure can be devastating for homeowners who have fallen behind on their mortgage payments due to financial troubles. However, there is a way to turn things around despite this seemingly stressful situation. The entire foreclosure process may take six months to a year to complete after you receive your default notice. So if you’re wondering, “can I sell my home if it is in foreclosure,” the answer is a resounding yes. 

What is a Short Sale?

If your Florida home is in foreclosure or pre-foreclosure, you still have a shot at a short sale up to the point that your lender sells the house at auction. When your home is in this position, it becomes a distressed property, so you must sell quickly. A short sale is a quick process in which a homeowner sells the property for less than the mortgage amount, effectively avoiding foreclosure. 

The Benefits of Selling During Foreclosure

The answer to “can I sell my home if it is in foreclosure” is yes, if you use a short sale. While this isn’t the ideal scenario, it’s a better outcome for a homeowner than foreclosure. A short sale is still likely to damage your credit score, but not as severely as a foreclosure will. It allows the lender to recover part of the mortgage loan rather than completely absorbing the cost making it beneficial to them as well. 

The most significant benefit of a short sale is that it prevents foreclosure. While this is good for both the lender and the homeowner, it also benefits the housing market. Foreclosure negatively impacts the market by decreasing the value of homes. 

This legal process affects not only the value of the property in foreclosure but also those close to that property. In part, this is due to a lack of maintenance on homes that foreclose, which can affect the aesthetic of a neighborhood. Short sale further benefits the housing market by making it easier for first-time homebuyers to break into the market with reduced housing prices. 

A big part of a short sale’s appeal is that it helps the homeowner take back control. While the rapid pace of the process can still be stressful and unconventional, a short sale more closely resembles the traditional home sale process than a foreclosure, which involves legal action. The homeowner has an active role in the sale process, managing negotiations with the buyer, the real estate agent, and the bank. In contrast, the homeowner must deal with the bank’s attorneys on their terms during a foreclosure. 

Opting for a short sale rather than riding out your foreclosure leaves you in a much better position. You can avoid legal proceedings and reduce your debt, making it easier to repair your credit score down the line. Short sale offers homeowners in a tough spot a chance at rebuilding. 

How to Sell Your House Before Foreclosure

After you determine the appropriate value of your home, it’s time to list it. You have three options for selling your house before foreclosure: 

• List it Yourself

If the housing market in your area is hot and your home is in excellent condition, you can consider listing the property yourself. However, this requires a lot of effort on your part to organize open houses on short notice and advertise the listing. It also means handling legal paperwork yourself. 

• Use a real estate agent

For homes that are not open house ready, or if you’re feeling overwhelmed by your situation, it’s worth getting a real estate agent on board to help you list and sell the property. The downside to this option is that real estate agents work on commission, so once you sell, they’ll take a cut of the sale price. Since you’re already taking a financial hit with a short sale, this can be less than ideal. 

• Use a cash buyer

When you’re trying to sell a home quickly before foreclosure, a cash buyer is a great option. Like Meli Homes, cash home buyers are prepared to pay cash for your home upfront without taking any commission. This is a quick and easy process that can help maximize the return on your financial investment. 

A Cash Home Buyer is the Quickest Way to Sell

When you’re trying to sell your home before foreclosure, speed is a critical factor; it’s a race to sell. Opting for a cash home buyer can help ensure you sell quickly and with no hassle. The process of using a cash buyer can take 30 days or less, which is ideal for this tight timeline. 

As with any viewing for a potential buyer, you should prepare your home for a cash buyer walkthrough in advance. Where possible, stage the rooms to maximize their appeal and remove personal clutter around the house. Presenting a tidy, move-in-ready property is a great way to get top dollar. 

When you’re ready to show the house in St Cloud, Winter Park, or Tampa and the surrounding areas, contact Meli Homes to set up a walkthrough. 

Following a walkthrough of your home, Meli sends you an offer to review. If you decide to accept, Meli handles all the closing and legal fees and provides your payment in cash. You can then pay your lender and move on to the next chapter of your life. 

Sell Today With Meli Homes

Meli is a cash home buyer that offers a stress-free solution to homeowners who need to sell a distressed property before foreclosure. If you’re dealing with a foreclosure, consider contacting Meli Homes to buy your home quickly for cash.

Call us today at (407) 338-4183 or fill out our online form to request a callback. We will get back to you within 24 hours to schedule a walkthrough of your property, make a cash offer and help you get your life back on track.  

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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