Category: Uncategorized

If you’ve ever passed by signs placed at intersections or on busy roadways in your city claiming to buy houses, even those less than perfect, for cash, you may be wondering what they’re all about. Are these legitimate companies that buy distressed properties, or is it a scam? Should you even consider them when selling your house?

These advertisers, often referred to as investors or cash buyers are usually companies willing to purchase distressed properties.

The term distressed property can include houses in disrepair, in foreclosure, or caught up in legal processes such as divorce, bankruptcy, and probate. Owners are often looking for a quick sale, and that’s where these companies can be most beneficial.

Before selling your house to a cash buyer, here are five things you should know about companies that buy distressed properties.

1. Companies Seek Out Certain Types of Sellers

Cash for homes companies focuses on buying from homeowners who want to sell their homes fast and as-is for various reasons. While they may come across a few of these distressed properties on their own, they usually rely on the owner to recognize that their home falls into this category and seek out these companies for a quick selling opportunity.

In particular, these companies look for homeowners in the following situations:

• The home is in disrepair due to maintenance neglect.
• Damages to the home, including those caused by extreme weather, are too costly to repair.
• Safety code violations or tax liens are attached to the property.
• Impending foreclosure on the property.
• Seller is going through a divorce, bankruptcy, or other legal issue causing financial hardship.
• The property is in probate and must be sold.
• The seller inherits the property with no desire to keep it.
• The seller needs to relocate quickly due to job transfers or other needs.

If you fall within one of these categories and want to get rid of distressed property easily and quickly, selling to one of these companies maybe your best option.

2. Initial Discussions and Estimates

If you want to sell your distressed home as-is or need to move suddenly and want to sell as quickly as possible, you should call a distressed property buyer company like Meli. Our team asks you questions to get a clearer picture of what is going on with the property and why you are interested in selling in your initial phone call. These questions often include the amount still owed on your mortgage, a precursor to any offer, so when you call, try to have that information on hand.

At Meli, we buy a variety of homes, including single-family, multi-family, condominiums, mobile homes, and manufactured houses. When you speak with our team members, clarify what type of property you own, and confirm that we are open to purchasing it.

By asking these specific questions, we can determine if your property is a good fit for us. Sometimes, we can present you with an approximate estimate at the end of the initial conversation, even before seeing the property itself. This will come at no cost to you and give you an idea of the sale price.

3. Scheduled Walk-Through and Official Offer

Within a few days of your initial conservation, our team members will reach out to schedule a walk-through of the property with you at your convenience. This is an excellent time to point out any repairs or issues that may not be visible right away. You won’t need to make these repairs in order to sell, but it’s essential that you are upfront about any damage.

At Meli, we are decisive and won’t hesitate or drag you through unnecessary follow-up meetings before making an official offer. We often present an offer the same day as the walk-through. While this offer may not be as much as you might be able to earn through a traditional sale, you will benefit from the time saved. You also won’t have to make extensive repairs to complete the sale, pay closing fees, or host an open house.

4. Assistance in the Sales Process

Understanding that the home is distressed can address issues such as tax liens, title issues, and even court judgments. Our team provides guidance and can help you clear anything blocking a home’s sale to move forward. The sales process is handled in-house, saving you both time and money as well.

5. Quick Payment

Sellers often find that the best part of working with companies that buy distressed properties is the quick payment. They usually make this payment in full within 30 days from your first contact with us. It also includes any related fees, so you won’t be left holding the bag for those as well. All this provides immense relief to many sellers and why this is often a preferred choice.

It’s essential that you do research beforehand and make sure the company is legitimate. Check to see if they have an official website and read all the information provided. A great way to learn more about a company is through their online reviews. Read through the Meli client reviews to see how we’ve helped others, often through trying times. You can also request information on our financial records to ensure that we have the cash to pay for your house.

Contact Meli Homes

If you live in Tampa, Orlando, Winter Park, or any of the surrounding neighborhoods, you can count on Meli Homes to provide an honest assessment of your distressed home. We won’t waste your time but instead provide full payment within 30 days, cover associated fees, and help with any property issues.

Call us at (407)338-4183 with any questions you may have, and be sure to check out our official company website for more information. Contact Meli today to find out how we can work together.

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.

Image Credits

https://nationalmortgageprofessional.com/sites/default/files/foreclosure_0.jpg

https://mk0updaterd8frgp6aq6.kinstacdn.com/wp-content/uploads/2020/11/img_5fbe9cf30a746-800×534.jpg

https://www.istockphoto.com/photo/abandoned-home-gm483990909-25340451

Selling your house is a big decision, and if it needs repairs, you must decide whether to make those fixes or sell your home as-is. It can be a dilemma for homeowners and is not a decision to take lightly.

Home repairs can be costly and take time to complete, extending your timeline for selling and cutting into your profit from the sale. If you’re not in a hurry, this may be fine. However, if you need to sell your current property to afford your new home quickly, you should determine how long you can spend making repairs.

A house that needs repairs, either major or minor, can be classified as a distressed property. The distressed property includes those houses with damage, such as from extreme weather events, and those needing repairs such as a leaky roof, plumbing issues, foundation problems, and even cracked countertops. If you’re selling a house that needs repairs, here’s what you need to know.

Confirm What Repairs or Disclosures Are Required

Before placing your as-is home on the market, you first need to get an overall assessment of its condition. A home inspection will identify what issues your house currently has and whether these are safety risks. This is important because when selling your home through traditional channels, you may need to make certain repairs to bring the house up to code.

A home inspection is crucial because it can identify any problems you must disclose to potential buyers, like a cracked foundation, faulty wiring, or termite damage.

Be sure to comply with any disclosure requirements regarding defects in the home. The potential buyer will also do their own home inspection, so it’s better to be upfront with them from the beginning.

Choose What Repairs To Make to Attract Buyers

Once you determine certain repairs are out of your budget or time range, you can help the sale by making some cosmetic changes to up your home’s curb appeal. This way, you can attract more buyers by showing them a little of the potential of what the home can be for them.

A few suggestions for projects you can take on include:

• Front and side yard landscaping
• Painting the front door and sprucing up the front entrance
• Modernizing light fixtures either indoors or outdoors, or both
• Removing old carpets and cleaning the floors beneath
• Patching holes in the walls

The landscaping alone can bring a higher return on investment, so consider putting in the work here to improve your curb appeal. Landscaping can also highlight the best features your home has already.

Negative Impacts of Selling a Home That Needs Repairs

There are negative impacts to selling a house that needs repairs. Being aware of them can help you avoid surprises and set your expectations more realistically.

A house needing repairs will be less competitive on the real estate market, especially for those looking to buy a turnkey home.

If other houses in your neighborhood go up for sale with no major defects, that can also affect the number of buyers that look your way. If quickly selling your home is a priority, traditional buyers may be harder to come by within a quick timeframe.

Perhaps most important is that a house that needs repairs will bring in a lower dollar amount when sold. Therefore, you need to price your as-is home realistically.

To help you price your as-is home accordingly, first research the market. Is it a buyer’s or seller’s market? Do you live in a highly desired neighborhood or location, possibly near good schools? Weigh all the factors in when deciding on the ideal price for your as-is home.

Keep in mind that potential buyers will also use the knowledge of needed repairs to lower the sale price. You must determine your low price threshold and if lowering it to sell quickly is a good option for you. Overall, the key is to understand and know how to sell a house that needs repairs.

Potential Buyers for a Distressed Property

As you make your decision to sell your home with its needed repairs, consider who your potential buyers are to make the process of selling distressed property easier and faster. There are two main categories of potential buyers for your as-is home, fixer-uppers and distressed home buyers.

• Fixer-Uppers

Fixer-uppers are buyers who can see the potential of a home and want to make the necessary repairs to design the home of their dreams. They often have the skills needed to make the repairs themselves and get the house in good shape. Otherwise, there are renovation loans available for situations such as this.

Some like the challenge of a new project, while other such buyers desire to live in your neighborhood, and the number of houses available is limited. Another variety of this type of buyer is the flipper. Flippers buy houses in need of repair, remodel them, repair major flaws, then turn around and sell the home for a higher price.

• Distressed Home Buyers

Similar to the flipper, distressed home buyers like Meli look for properties in disrepair or locked up in some type of financial hardship such as foreclosure, divorce, or bankruptcy. However, unlike flippers, distressed homebuyers can quickly complete the sale and pay you the total amount for your home upfront.

The process of working with distressed home buyers like Meli Homes is straightforward. You contact the buyer and explain your situation and disclose the shape of your house. The buyer then schedules a walk-through of the property with you and, if interested, usually makes an offer that day or soon after.

Working with Meli, you can expect full payment within 30 days. You won’t have to stress over numerous showings and negotiations with potential buyers. The company can also help with any issues surrounding the property, such as navigating the probate process, clearing up any tax liens, and dealing with titles.

Contact Meli Homes

If you’re ready to sell a house that needs repairs in Orlando, Tampa, Kissimmee, or areas nearby, give our office a call today at (407)338-4183, and let’s see if we can work together. Avoid all the hassles of selling to traditional buyers and speed up the process. We provide full payment within 30 days and help you get out from under your as-is house quickly.

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.

Image Credits

https://prosourcehomebuyers.com/wp-content/uploads/2019/03/iStock-171572856.jpg

https://own-content.ownerly.com/fit-in/750×0/filters:format(jpeg)/filters:quality(60)/2020-07-15-How-to-Sell-a-House-That-Needs-Repairs-CDN.png

https://socalhomebuyers.com/wp-content/uploads/2019/10/selling-a-house-that-needs-repairs.jpg

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

Hey, this is Evan with Simple Sale Central Florida. We’re back again this month for our April Q&A. Just to briefly introduce Simple Sale; Simple Sale buys and sells and brokers distressed residential real estate throughout Central Florida. That’s Tampa Bay, the Orlando area up to Ocala, down to Kissimmee or Haines City, and the Space Coast.

Our mission is to bring transparency and accountability to distressed home sales, and we strive toward doing that on every transaction and every property that we buy or help broker with our clients. We really strive to bring transparency and accountability to an industry that can be very predatory. For the people that are trying to sell their distressed property, we try to bring a customer-centric, client-centric attitude to every transaction. 

So, we will go ahead and get into the questions: 

1. Are there any home-buying scams that I should be aware of?

There may be some kind of scam where they don’t actually buy your house. But the biggest scams are really the lack of care that a buyer or supposed buyer puts into the transaction where you may think that they’re going to buy the property, when in fact they actually may not. You may be 30-45 days into a transaction and then the buyer drops out because maybe they were trying to sell the property to someone else, or for whatever reason they are trying to lower the price on you at the last minute. And then if you won’t lower the price they’re going to leave you hanging. That’s really common. So, it’s really one of those things of working with a company that really cares about the end result with you, the seller.

If you’re working with a company that just cares about getting the property flipped as quickly as possible and whatever has to happen for them to get paid is really most important, then that’s probably not the company that you want to work with. So, that’s really the main thing is just companies that aren’t very client-centric that may leave you hanging after weeks of being under a contract and may try to lower their offer price on you at the last minute. That’s a really, really common tactic. 

Read More: Is Selling your House for Cash a Scam?

2. Is it possible to sell a distressed home without dealing with all the problems it has first?

It definitely is, yes, we buy properties all the time where there are tons of problems. Just say that they need repairs. We buy houses that need tons of repairs. Could be a complete rehab. Could be leaks in the roof, leaks coming in through the walls, things of that nature. We’ll buy properties with all those issues. Distressed in the sense of financial or liens, we’ll buy properties like that.

Code violations. We’ll buy properties like that as well. You really don’t have to deal with those situations. For you to sell the property to us, I know some other home buyers may buy like that as well. We’re pretty unique in the fact that we’ll buy when a lot of other people won’t.

Read More: How to Sell a House that Needs Repairs

3. How can I sell a house that needs work?

Your best option, depending on the amount of work, if it’s not that much work it’s possible you can still list it. We work with clients where the property may need work or a small amount, but they’re still going to have a better outcome if they just sell the property on the market. And we’ll help them list that property and try to mitigate those issues as much as possible for as cheaply as possible. So, you can do that, then you can sell to a distressed home buyer like us. There are other people that will buy properties that just need work.

So, you need to understand that if you sell to a distressed home buyer, typically you are going to be selling it for much less than what you’d be able to get if the property was fixed up and if you listed it on the market. When we buy properties, we typically buy them with the intent of reselling them, so we have to make money to continue operating. Yes, you can definitely sell a property that needs work to answer that question. 

4. Are there any cons to selling a house as-is?

There are. I mean the biggest con would be that you haven’t taken the time and money to fix it up on your own before you try to sell it, and so, you’re going to be selling it for less than that market price. That’s just a reality of the situation that if you’re going to sell it and it needs a new kitchen, new baths, new floors, whatever, all that’s going to add up, those costs are going to add up when selling your property. 

 So, those are really the only cons, but for the average person going and taking the time to do that work typically isn’t worth it. If you have a lot of other things going on just selling the property as-is in the long run if you try and do the work yourself you may realize that it wasn’t really worth it, especially if you deal with a few bad contractors. But you can consider that a con that you’re not getting that full market retail amount unless you fix it up, so yes, that’s really the biggest thing.  

Read More: Pros and Cons of Selling Your Distressed House As-Is 

5. We have a code violation on our home but need to sell. What can we do?

So, some companies like us will buy that property with a code violation and we’ll either close on it before we settle the code violation, or we’ll settle it after you get paid. It just depends on the severity of the code violation to know if we’d be able to close or not, but we’ve closed on properties with hundreds of thousands of dollars in code violation liens in the past. So, we’ve closed on properties with demolition liens, so we definitely have considered a lot of difficult situations that we’ve figured out and paid the seller, even before those situations were fixed.

6. I don’t have a lot of time before my home is foreclosed. Can you help?

Yes, absolutely. So, we are used to buying properties before they go to foreclosure. I would say a small percentage of properties that we buy are like that. Typically, people don’t wait until the last minute, but if you are in that situation, we will definitely buy properties that are going to foreclosure within the next couple of weeks. But, we don’t see it that often, but we can definitely help you for sure.  

7. Is it possible to sell a house with a lien on it?

Yes, it’s definitely possible. I would say 95 percent of homebuyers will not buy it. We will. We have in fact bought properties with hundreds of thousands of dollars of liens on them and closed on the property before removing the liens, so the seller gets paid for the property and then we go and negotiate the liens that can take months, not years, to negotiate those liens. So, it’s definitely possible. You just have to find the right buyer. We can definitely help you. I know we are one company that will. There may be some other ones out there that would help you, but it is definitely possible.

What happens a lot of times is someone will buy a house and not know it has a lien on it and then close, and then realize that it does have a lien. That’s typically the only way that a house will sell with a lien. But we will buy them knowing that they do have liens, and just taking that risk.

8. I inherited my parent’s home but I don’t really don’t have the time or energy to deal with it. What should I do?

So, in those situations, let’s assume you haven’t gone through probate, but you know you’re going to get the property. We dealt with this a lot, so we would help you go through the probate process with our attorney and handle that entire process for you. And then once you get through that depending on the condition of the property, we’d analyze it and say, “It’s probably in your best interest”, maybe if it has a ton of work we would say, “It’s in your best interest to just sell the property as-is for cash just because it needs so much work.” And we will make you an offer on it, but if it’s not in half-bad shape, which is what we see a lot, just decent, the house maybe needs updates, but not a big deal. We’ll typically just help you list it because you’re going to get the best and highest buyers that way. It’s not going to add much stress. Really, there’s probably going to be very few repairs. 

I know we have a deal going right now that’s pending a sale that is in that situation and it needs a few thousand dollars in work. The company, Simple Sale, put up the money for that little amount of work. We listed the property, sold it, and then got reimbursed for the sale of the property. So, it really just depends on the condition. So, if it needs a lot of repairs, typically it’s easier just for a cash offer, but if it doesn’t then your best route is definitely to list the property. 

9. I bought an investment property but don’t wish to work on it anymore. Can you buy something like that?

Yes, we can definitely buy any investment property that may be halfway through rehab. We’ll buy that property as-is; not an issue, and finish out the rehab. You can send it over to us at SimpleSaleCentralFlorida.com. We’ll take a look at it and then give you our thoughts, and we can typically give you an estimated offer in a couple of hours. Definitely, the same day and let you know what our thoughts are based on what you’ve told us. And if you could send us photos and then we can go from there.  

10. Can you buy my rental property if I still have tenants?

Yes, we definitely can buy properties with tenants or squatters or whatever the case might be. That’s not an issue for us. We’ll rarely buy properties with the tenants. Typically, if someone is wanting to sell property with tenants, it’s probably because there’s an issue with the tenants. A lot of times sellers can kind of gloss over the fact that maybe the tenants haven’t paid in a few months or whatever the case may be. We’d definitely want to be aware of what the situation is. 

But typically, we figure out what’s going on, but we would definitely buy properties with tenants, bad tenants, squatters, it doesn’t matter, we’ve done it. You could just send it by us and see if it’s something that we can work together on.

Wrapping Up

Okay, so that was it for the questions. Are there any other questions? I’m checking the comments. I don’t see anything.

So, I appreciate whoever is viewing, and hope this may have answered some of your questions. And if you do have any questions, you can reach out to us. You can call (407)338-4183, or go to our website: SimpleSaleCentralFlorida.com. Put in your address, request an offer, and then we will reach out and discuss your property with you to see what your options are. It’s not always the best option for clients to just sell the property for cash. Sometimes it’s to list the property. A decent amount of time it’s to list the property and get the best and the highest for it if there aren’t too many situations going on.

But as always, feel free to reach out and discuss your situation. We’ve really handled a lot of different situations at this point, so anything you have don’t be afraid to reach out and we’ll let you know if we can’t do it, but most of the time we can.

So, thank you all very much, and reach out with any questions. Thank you.

If your home is distressed or severely in need of renovations, you may struggle to find a buyer. Even an experienced real estate agent can’t sell a home that traditional buyers can’t see themselves living in.

Selling your house for cash to a reliable and reputable distressed home buyer is a fantastic option for most sellers. You can get a sizable amount of cash to use for your next home while avoiding the hassles and delays associated with a traditional sale.

It’s important to understand the pros and cons inherent to the cash buying market. Here are the basics you need to understand to make an informed decision on whether to sell a house for cash.

Pro #1: Money Fast

Not having enough money for a down payment or monthly mortgage bills on your new home can quickly derail your plans to move. For most homeowners, the equity tied up in their old home is their only significant source of wealth. If that house doesn’t sell, they can’t afford to move on.

Selling your house for cash makes the process much faster, which is one of the biggest benefits of cash home buyers. Instead of waiting months for an interested buyer, you can reduce the process to 30 days or less.

Part of the reason the process moves so fast is that there are no lenders involved. A distressed home buying business like Meli has the cash on hand to buy the house from you in as little as seven days. Traditional sales involve mortgage lenders who need weeks to process the buyer’s application and deal with any questions or problems that arise.

Pro #2: Deal with Liens and HOA Fees

Depending on the exact specifics of your situation, you may be able to quickly sell your home for cash, even if there is a lien or overdue HOA fees. Although you need to resolve these issues before a sale can occur, an experienced and knowledgeable distressed home buyer knows how to cut through the red tape quickly and sometimes help pay for fees.

In many cases, you need to deduct at least some of the debt from the proceeds of the sale. A reputable and experienced home buyer who specializes in these situations will be able to give you a summary of options available to you.

Pro #3: Avoid Contingency Clauses

Traditional home sales have contingency clauses that allow a buyer to back out of the deal without penalty under certain conditions. Common contingency clauses include the discovery of a cracked foundation or other significant issues. Many contingency clauses also have a time limit, typically around three months, that allows the buyer to cancel their purchase if the sale is taking too long.

Cash buyers will do a brief inspection of the home, but they are usually buying on an as-is basis with the understanding that they will be on the hook for future expenses. Like you, they want to close the sale as quickly as possible so they can begin essential repairs and start looking for a buyer.

Pro #4: Escape Unfavorable Market Conditions

Buyers are usually looking for good schools, safe neighborhoods, and homes with modern floor plans. If your home is lacking in one or more of these areas, you might struggle to find a buyer for reasons completely outside of your control.

There may also be more sellers than buyers right now, creating a surplus of housing stock that’s difficult to stand out in. Selling a distressed home is difficult enough when market conditions are in the seller’s favor, but when demand is too low, or supply is too high, it becomes nearly impossible.

Selling to a cash buyer allows you to avoid dealing with these conditions and move on with your life. Florida cash home buyers can take your property no matter where it is, even if the local market in your city is weak.

Pro #5: No Rental Headaches

Some families try to get out of dealing with the sale of their distressed home by renting it out. However, this invites a huge range of potential issues. Distressed homeowners typically can’t charge as much in rent as more up-to-date properties, so you might not even make enough to cover your mortgage.

Plus, being a landlord requires you to either make ongoing repairs yourself or contract with a property management company, which often charges high fees. If one-time repairs are necessary to bring your property in line with local housing codes, you could end up with a bill of $10,000 or more before you can start to make any money renting.

It’s better to leave the house in the capable hands of a professional home buyer who can make the property live up to its potential and eventually sell it to the right buyer. You won’t even have to worry about the hassle of open houses.

The Downside: Less Money Overall

When evaluating the pros and cons of selling for cash, the only consistent downside is that you will receive less cash than you would on the traditional market. Although you’re dodging realtor fees and certain other closing costs, you’re also not receiving the full potential market value of the home.

However, not worrying about the headaches and hidden costs of a traditional sale makes this discounted price well worth it for many sellers. You can take the cash and immediately invest it in your new home instead of wasting time, energy, and possibly money dealing with your old house.

Your Local Distressed Home Buyer

Whether you’re holding on to a distressed home or trying to sell it on the open market, both options will eventually bring more trouble than they’re worth. Full-time professionals and parents don’t have the time to deal with all the possible problems that arise.

If you’re ready to sell a house for cash, call Meli Homes at (407) 338-4183. We have a knowledgeable and experienced team ready to serve you and answer all your questions even if you’ve never sold a home before.

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.

Image Credits

https://unsplash.com/photos/tbUmoLalVpo

https://unsplash.com/photos/n95VMLxqM2I

https://www.pexels.com/photo/person-holding-pencil-1388944/

Owners of older houses may find that their home is more than good enough for everyday living but isn’t up to the real estate market’s demanding standards. This is especially true for people who inherit older homes or end up over their heads with a property that needs a lot of repairs.

The home buying market standard is for the seller to make repairs as requested by the buyer before the sale is finalized. However, this can be an expensive and time-consuming process that some sellers don’t have the budget or the time for.

Sellers can bypass this expectation by listing their property for sale “as-is” with no requests for major repairs from the buyer. Although there are potential downsides to this practice, it works well for some sellers, especially if you’re open to the idea of selling the home for cash.

Lower Asking Price

If you want to sell your home as-is, the biggest thing to understand is that it is almost guaranteed to fetch lower offers on the traditional real estate market. Savvy buyers know repairs can add up fast and knowing that they’ll be on the hook for repairs themselves incentivizes them to look for the best deal possible. They may drive a hard bargain, especially if they know that market conditions are in their favor.

If the repairs are going to be costly and time-consuming, the lower price may be worth it. However, you must consider the amount of remaining mortgage on the property before accepting a low offer. If you purchased the home recently and are looking at major repairs, an as-is offer from a buyer may net you little to no cash.

You will need to be very particular about which offers you consider, especially if you need the money from the sale to fund your new home’s purchase. Sometimes, however, this may mean waiting months for an acceptable offer.

A professional cash home buyer can see the potential in your home and give you as much money as possible for it, even if it’s distressed and needs significant repairs. You can even have the home buyer help you sort out and pay off liens and overdue homeowners’ association fees.

Potential Loss of Interest

Selling your house as-is may make it more attractive to buyers on a tight budget. They may have the time and energy to put into repairs but don’t have a large budget to spend on a larger down payment or monthly mortgage.

However, some buyers might not see the potential in your house or just prefer to buy a turnkey property. You will almost certainly lose out on some of these would-be buyers by offering your home as-is. If your home is in a neighborhood that mostly attracts wealthy buyers, your home may end up overlooked by the vast majority of home seekers.

You may also struggle to attract buyers if the market is already flooded with homes for sale. Even if the homes on the market are radically different from yours, having that excess stock available may cause your house to go unnoticed. A similar dynamic can occur if there are fewer interested buyers in your area but an average number of homes available.

You can mitigate this loss in interest by talking to a cash home buyer who specializes in buying houses as-is. Cash buyers usually specialize in buying as-is properties to fix up and invest in. Instead of being scared off by the need for repairs, they see a property they return to its full potential with some expert help.

Close the Sale Faster

One of the single greatest benefits to selling as-is is the general increase in speed. Significant repairs can take weeks or even months if weather conditions get in the way of completing the work.

Even if your home looks fine on the surface, issues uncovered during inspections can cause your sale contract to unravel. Many traditional home purchase contracts contain contingency clauses designed to protect the buyer from hidden damage to the home. By selling the home on an as-is basis and avoiding these clauses, you can avoid demands for repairs from the buyer and close the sale faster.

Selling as-is also includes the possibility of selling to a professional home buyer who has the technical knowledge and time required to close the sale quickly. A home buyer with lots of experience can close a sale in as little as a week if all the paperwork is in order. Even if a sale requires troubleshooting titles and liens, a professional who specializes in distressed homes will be able to navigate those systems quickly, often closing within 30 days.

Leave the Repairs to the Experts

Although a traditional real estate agent can help set you up with contractors for repairs, finding a team that’s available to do the job quickly can be difficult. You may end up juggling multiple contractors’ schedules while also dealing with your full-time job and trying to move into your new home.

If you’re selling a home in need of repair, you’ll attract both savvy DIY enthusiasts and investors with experience dealing with distressed homes. Cash buyers can take the stress off your hands by either doing the repairs themselves or partnering with their team of contractors.

Most DIY enthusiasts still need a bank mortgage, which can slow down the sale process. Working with a dedicated full-time cash home buying business can make the sale go much faster.

Central Florida Home Buyers

Selling your house as-is can work significantly in your favor if you find the right buyer. Instead of waiting around for months for a buyer to show up, reach out to distressed home buying specialists Meli Homes who know the market and your property’s full potential.

Whether you’re moving in a hurry or are struggling to sell an older property, Meli Homes has a reliable and professional team ready to assess your home and give you an offer within 24 hours. We work on your schedule and can complete a sale in as little as seven days if all of your paperwork is in order. Contact us today at (407) 338-4183, so we can get started.

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.

Image Credits

https://unsplash.com/photos/9LRhHdprvbw

https://www.pexels.com/photo/crop-woman-taking-notes-in-calendar-5239917/

https://www.pexels.com/photo/person-writing-on-paper-on-top-of-table-544965/

If you’re in the middle of a fast move or have a home that needs substantial repair, you might not have the time or money necessary to bring it up to peak condition. Little problems like stained paint and carpet, damaged tiles, and drafty windows are easy to repair, but larger problems like a weak foundation or leaky roof can become a huge drain on your time and energy.

Selling your home as-is allows you to put your house on the market with the understanding that a buyer cannot demand repairs or alterations. Although the buyer still has certain rights, an as-is sale gives you an easier way to quickly sell a home.

Finding the right buyer for an as-is home can be challenging, even if you slash the asking price. Here are the essential things to keep in mind when selling your home as-is.

1. Market Variables Matter

Even if you aren’t selling your home as-is, it may be difficult for your home to sell in a crowded market. An as-is house gets crowded out by homes in better condition, even when market conditions are normal.

The other complicating factor is the demand. Just because there are few homes for sale in your area still doesn’t mean your as-is home will sell because low interest in your city or neighborhood means that overall housing demand is minimal.

Some cities may have more interest in as-is homes due to a higher number of DIY enthusiasts looking for homes. However, this number varies from region to region and every neighborhood to neighborhood. For most sales, luck and subjective buyer preferences play a large role that can’t be planned or accounted for with other variables.

2. You Will Likely Get Less

Part of the reason repairs add so much to your home’s value is that those repairs cost time, energy, and money. Even a $100 repair can add to the asking price you can get if it’s highly visible to the buyer.

Selling your home as-is can result in a significantly lower price, especially if market variables are currently working against you. Even an experienced real estate agent won’t be able to fully counteract these factors.

The good news is that selling property as-is often results in cash offers, which give you immediate funds to put into a down payment or mortgage on your next home. Some of this cash may need to go toward paying off any of the remaining mortgages on the old home, so it’s essential to do the math and make sure you understand the lowest offer you can afford to accept.

3.You Must Disclose Significant Problems

You must disclose termite damage, foundation damage, mold, and certain other structural problems, as legally required by law. Although it’s still possible to sell an as-is home with these conditions, even DIY-savvy buyers may be reluctant to take on a home with such big challenges.

Most times, a buyer can and will bring their own inspector onto the property to make sure they know exactly what they are getting. However, they cannot demand any additional repairs from the result of this inspection if you are selling as-is.

4. Selling Can Be Slow

Some as-is homes are ideal candidates for DIY enthusiasts due to their solid overall structure and potentially valuable lot. However, even these houses are not guaranteed to sell within a particular timeframe if the neighborhood itself is not in-demand.

Outside variables like issues securing a lender can also impact as-is home sales. Traditional banks usually are wary of financing an as-is home purchase, a fact that buyers may not be fully aware of when they make an initial offer on your home.

If your primary motivation for an as-is sale is to get done and get out as soon as possible, remember that an as-is sale is not necessarily a quick fix for your problems. You may need to do some outreach of your own to find the right buyer who can close the sale fast and hassle-free.

5. Professional Buyers Also Exist

Homeowners looking for a fixer-upper or landlords looking for a potential rental property often seek homes for sale as-is. However, a major segment of the as-is home market goes to professional cash buyers who specialize in a particular region or city.

These professionals buy distressed homes in need of repair and pay you cash so you can get out and move on with your life as soon as possible. They deal with distressed houses regularly, so they know how to handle liens, late HOA fees, title disputes, and other issues that would delay or cancel a traditional sale. In many cases, they can close a sale with cash in 30 days or less.

They are also more willing to deal with termite damage, cracked foundations, and other major issues that will scare off traditional buyers. Distressed home buyers have so much experience dealing with major repairs that they’ll know just the team to call to restore the property. If your home needs substantial work that is not within your budget or is an emotional drain, consider working with a professional who buys as-is homes for cash. Be sure the company is reputable and check their reviews.

Contact Meli to Find Out More

No matter your reason for selling as-is, you deserve the fastest and easiest selling process possible without settling for an unfair price. Partner with Meli Homes professionals for a cash offer that can get you out the door and into your new home without delay.

We buy homes in a vast range of as-is situations, even if you’re dealing with critical structural damage. We know you’re in a hurry to get on with your life and can make you a cash offer within 24 hours of seeing your home. Call us today at (407) 338-4183 to talk to a member of our team about our process and how we can help you off-load your as-is home on your schedule for a fair price.

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.

Image Credits

https://pixabay.com/photos/architecture-building-house-3304941/

https://pixabay.com/photos/abstract-background-bad-damp-70735/

https://pixabay.com/photos/shaking-hands-handshake-hands-3091906/

With homeownership often comes the necessity of estate planning or leaving legal instructions as to what happens to the house upon its owner’s death. The house may automatically pass to others through a living trust, quitclaim deed, or another legal document type. However, when there is no document, the estate, including any properties, enters into the probate process. Selling a house in probate isn’t something a lot of people are familiar with, so it can seem scary.

Probate is a thorough legal process in which the transfer of property from an individual’s estate to designated beneficiaries takes place under the supervision of the courts. This can be a long, drawn-out process, so don’t expect quick solutions or turnarounds. Courts are notoriously busy, and scheduling can be a nightmare, with court dates sometimes pushed back multiple times.

When the homeowner has no will or doesn’t designate a beneficiary for the house, it falls upon the executor or estate administrator to sell off the house. If the will hasn’t designated someone to serve as the decedent’s estate representative, the court appoints an executor or administrator who serves as the decedent’s estate representative. Often the appointee is the next of kin.

Once appointed, this person is responsible for selling the house and property. This is used in order to pay the deceased’s creditors or distribute proceeds to identified family members or other beneficiaries.

Selling a house in probate brings with it unique challenges that a traditional home sale doesn’t. Knowing what to expect when selling a house in probate can help the process move along more smoothly. Plus, it can help you keep your wits about you over the long run.

Your Role as Executor or Estate Administrator

Once assigned the role of executor or estate administrator, you become responsible for the home’s sale. You may want to consult an attorney specializing in estate law to ensure that you strictly follow all legal requirements. Because you don’t personally own the property, you also need to have court approval before a sale. It’s best to make sure you’ve received permission before signing over the deed.

Before you can sell the home, you need to schedule a home inspection and appraisal. This gives you an overview of what shape the house is in and what it’s worth in the market. Use this information to set your asking price and determine your next steps.

What If the House Needs Repairs?

Many homes that fall under the probate process need minor or sometimes major repairs. Funds for these repairs may not be available or may be tied up in the estate and not accessible by the executor or estate administrator.

If you need to repair the home before selling, you can hire a real estate agent experienced in selling houses under probate. These agents probably have connections with contractors willing to do repairs with the knowledge that all payments will be made upon the sale of the house.

Another option is to put the house on the market as a distressed property. Distressed property, meaning houses in some level of disrepair or damage, either physically or financially, is sometimes hard to sell. Many prospective buyers prefer to purchase a home in move-in condition or don’t want to wait until the owner’s legal issues, including tax liens or probate, have been resolved.

However, there are some companies like Meli Homes that specialize in purchasing a distressed property, as-is. Working with a company like this could save you time and money repairing the property.

Steps to Selling the House in Probate in Florida

However you choose to sell the house, you need to follow these steps to abide by Florida probate law: 

• File your intentions for selling the house with the court. Include the appraisal and the sales method chosen, such as open market sale or auction. You must wait for the court’s approval.
• List the house for sale, either independently or hire a real estate agent specialized in probate sales, or contact a distressed property buyer.
• Once a buyer comes forward, inform them that court confirmation is required before the sale can be completed.
• Petition the designated probate court for an Order Authorizing the Sale of Real Property, including your signature along with sale and property descriptions. Also, include a copy of the Sales Contract with the buyer.
• Obtain consent from all beneficiaries of the estate or proof that notice has been provided to all beneficiaries with no objections. A hearing can also be set.
• Court will review all documentation, and if sufficient, will issue an order approving the sale of the property to the buyer.

Types of Buyers

Potential buyers may not be willing to wait and jump through hoops necessary to purchase a house in probate. It’s often a long process, and many private buyers might worry about going through it only to not receive approval.

Instead of chasing private buyers, you can also consider selling the property to an investor, or cash home buyer, experienced in purchasing distressed properties. Even if the home is in fantastic shape, its probate status means most investors will consider it a distressed house.

By working with a cash home buyer like Meli Homes, you can close the sale quickly, usually within 30 days. You also receive full payment upfront with Meli and won’t need to cover closing fees. Knowledgeable in the probate process, you can trust Meli to follow all the legal requirements involved. We provide you with the peace of mind that you have fulfilled your role fully.

Contact Meli to Find Out More

If you’ve been appointed the executor or administrator of an estate in Central Florida, and need to sell under probate, reach out to Meli! After a few quick questions, you could receive an offer and be on your way to a quick sale.

Call us at (407) 338-4183 to start the process today. Until you sign the contract, you have no obligation to continue the sale and can back out at any point, making your call to us entirely risk-free.

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.

Image Credits

https://na.rdcpix.com/604010129/8ecb8b5c10a19ccbe1daba7bc38ec77cw-c296536xd-w685_h860_q80.jpg

https://commons.wikimedia.org/wiki/File:Fixer-Upper_(8676229431).jpg

https://cdn.carrot.com/uploads/sites/482/2020/02/A-House-For-Sale-In-Probate.jpg

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

Hey, it’s Evan with Simple Sale Central Florida; we are back for our March Distressed Home Q&A. We come on once a month to answer any questions that come up throughout the month that we get from clients.

Simple Sale buys, sells, and lists distressed properties throughout Central Florida from Tampa Bay to Orlando to the Space Coast. We specialize in working with properties that have legal issues, excessive repairs, problems of any sort with a property. If someone needs to sell quickly, that’s what we specialize in.

Let’s go ahead and get right into the questions we have:

1. How can I sell a house that needs repairs?

Typically a property that needs a lot of repairs done will have to be a cash sale. Otherwise, you’ll have to make the necessary repairs. Then you can sell that property on the MLS, on the open market with an agent. If you’re unable to make those repairs, your best bet is to sell the property to a cash buyer who can sell the property as-is.

Read More: How to Sell a House that Needs Repairs

2. Is it possible to sell a house in probate?

It is possible. It’s possible to go under contract on a house that’s in probate, but the probate will have to be resolved before the property is closed on. The personal representative or the executor of the estate can sell property, put it under contract to sell. Once the court gives permission to sell that property, then the buyer can close on it and the seller can sell it.

Typically that will take a document from the courts, the title company will require the document from the courts to be able to sell that property. But it is very possible to sell a house that is in probate, as soon as the court allows you to.

3. Can I sell my house to avoid foreclosure?

Yes, you definitely can sell your property to avoid foreclosure. That’s one of the ways that you can avoid it. Obviously, you can try to renegotiate your mortgage, lower your payments, things of that nature.

You also can sell it in order to avoid the foreclosure and pay off the mortgage that is owed. That will allow you to get out of the foreclosure process which will end up saving your credit. And, more than likely, giving you more financial peace of mind if you’re behind on your mortgage payments.

Read More: Can You Sell Your House Before Foreclosure?

4. Can I sell my house as-is, fast?

You can very much sell your property as-is quickly. Typically if you are selling it as-is, you’re going to be selling it to a cash buyer. That cash buyer, in most situations, will be able to close quickly on your property in the current condition. Once you go under contract on it they should be able to close on it quickly, 30 days or less.

There really shouldn’t be a reason for it to take more than 30 days. I think most of the closings that Simple Sale does is within 3-4 weeks. There’s really no reason for it to take longer than that.

5. Is there anything particularly difficult about selling your house as-is?

I think the only difficulty is really finding someone who will actually buy the property as-is and isn’t just making you an offer and holding you up in a contract. It’s just going to be finding the right home buyer that’s reputable and accountable, and they’re able to close on your property quickly.

Selling it as-is, assuming there is something wrong with it, to someone who is trying to obtain financing from a bank is going to be very difficult. Typically a bank is not going to finance a property if it needs a new roof, new AC. If there’s excessive repairs needed on the inside, a bank isn’t going to approve it. It’s more than likely going to require a cash buyer to be able to buy that property.

The difficulty is it reduces the number of buyers because it’s limited to cash buyers if there’s something wrong with the property.

Read More: Pros and Cons of Selling Your Distressed House As-Is

6. How can I get rid of a distressed property?

The best way to go about it is to find a company that is reputable, has great reviews online and a recognizable brand. They will be able to lead you in the right direction based on what’s going on with your property. Whether it’s something legal or an excessive repair issue, then it’s going to be your best bet to work with a cash buyer.

Someone who’s reputable that has worked with many people in a similar situation and is very experienced. They’ll be able to educate you on what the process is going to look like to give you peace of mind. Really, the best way is to work with a reputable home buyer that will buy your property for cash.

Read More: 8 Tips to Sell Your Distressed Property in Florida

7. Is it safe to work with a cash home buyer?

Yes, it’s definitely safe to work with a cash home buyer! As I already said earlier, the main recommendation is that you work with a company with reviews online. You should be able to find reputable reviews over a period of time that shows that they’ve been in business and they’ve worked with multiple people and they’ve had good interactions with their clients.

That’s going to be the best way for you to protect yourself. There are some cash buyers that will do things to try to get more money. They will try to give you less money for your property for whatever reason. That may be, a day or two before closing, asking for what they call credits, a reduction in the purchase price by a few thousand dollars, or something of that nature.

Typically with these companies, if they have a brand name at all, it will be relatively easy to see online that they don’t have great reviews and they don’t have good experiences with their clients. Typically their reviews will prove that.

Read More: What is a Cash Home Buyer?

8. Is there anything specific to selling a home as-is in Florida compared to other states?

I don’t necessarily think so. I think it’s all pretty similar. Maybe some of the documentation is different, maybe a little bit of the title processing is different, but for the most part everything is going to be very similar. Obviously different areas have different styles of homes, different types of homes built with different materials. For the most part from just a seller’s standpoint, what they’re going to have to deal with will be pretty similar to most anywhere else.

We’ve worked on deals outside the state of Florida that haven’t been particularly different than anywhere else, so I wouldn’t say that there’s anything specific to selling a home as-is compared to anywhere else really.

9. What types of situations do you specialize in?

We specialize in working with properties with legal issues. A lot of times it’s going to be some form of probate or lien issue. Maybe a property that has an heir that has passed away and there’s multiple heirs. Then we work with those heirs, settle out any differences that they may have. We then negotiate with them to make sure everyone’s happy with the situation and ready to move forward.

We are also very experienced working in settling code violation liens. We actually do buy those properties with the liens on them and renegotiate them. If you have code violation liens or things of that nature, that’s not that’s not an issue. Also if someone’s looking to sell property with excessive repairs, that’s definitely something that we are very used to dealing with. Properties that have holes in roofs, things of that nature. It really doesn’t bother us.

Liens, judgments, legal issues, probates, anything out of the ordinary… We’ve worked on it before so we are very used to working with that. It’s really not an issue at all. Also foreclosure, we work with a few foreclosures though it’s not a big part of what we do. On occasion someone is selling in a foreclosure situation and we will work with them as well.

10. I need to sell my house fast in Winter Park, can you help me?

Yes, of course. We buy properties in Winter Park, Orlando, Altamonte Springs, Maitland, anywhere throughout that area, Casselberry, Orange County as a whole we focus on. We can buy properties quickly in any of those locations, and we can definitely help you out.

Wrapping Up

Any other questions? In the comments I don’t see any questions. So we’ll go ahead and close it out.

You can always give us a call, 407-338-4183 or visit our website, simplesalecentralflorida.com. At Simple Sale we specialize in buying distressed properties throughout Central Florida. Tampa Bay, Orlando area to the Space Coast. Our mission is to bring transparency and accountability to distressed home sales and we try to do that through every transaction that we work with. Feel free to give us a call and we would love to try to help you out!

That is it for this month. We will be back next month to answer some more questions. Please feel free to reach out to us, go to the website and fill out the form, or give us a call directly and we can talk with you immediately. Thanks! Bye.

Many of us find ourselves in a situation where we need to sell a distressed property as fast as possible, whether it’s to release some funds or take some unwanted responsibility off our plates. Buying and selling a property can be a stressful experience, which is why there are companies that buy distressed properties. Our guide to things you should consider when you’re selling your distressed property will help you achieve your sale.

What is Considered a Distressed Property?

When you hear the term “distressed property,” you may think it refers to the physical condition of a building. While physically neglected homes are one type of distressed property, the term also refers to properties caught up in legal disputes or whose owners have financial difficulties. Some of the principal reasons a property might become distressed are:

• Properties can be left in disrepair due to natural disasters or neglected because of the owner’s economic problems. If the homeowner cannot pay for repairs, they may need to sell the property quickly.
• The homeowner has died, and the property is stuck in probate.
• Due to financial instability, the homeowner cannot pay their mortgage and may wish to sell quickly to avoid foreclosure.
• If an owner has been fined because the property is not to code, they may need to sell it as a distressed property.
• If a property market is slow and a homeowner needs to move quickly, they may decide to sell their house as a distressed property.

The Benefits of Selling to Companies That Buy Distressed Properties

Buying and selling homes is an emotional experience. It can get even more fraught when people are forced to sell under unexpected circumstances. Some homeowners find the idea of selling their house as a distressed property sad or shameful, but that’s not true. There are considerable benefits to selling a property in this way, for instance:

• Speed and simplicity: Buying and selling property is often one of the most stressful experiences of people’s lives, and sometimes that experience takes months or even years. Selling your distressed property as-is to companies that buy distressed properties is a fast, straightforward alternative.
• No need to renovate: If you are the owner of a property that’s in poor condition, for example, if you’ve inherited a relative’s home, you may not have the resources to renovate. Selling it as a distressed property allows you to avoid this mammoth task. Plus, you may walk away with cash in your pocket.
• Avoid foreclosure: If you find yourself unable to make your mortgage payments, the bank may repossess your home. Selling your distressed property quickly can ensure you avoid this. This may also give you money to pay off some debts and protect your credit rating.

Tips for Getting the Best Sale

Every homeowner that’s selling their property wants to sell for a good price to honest buyers. Depending on the housing market, that can be a challenging task. Following these simple tips can help you get the sale you want.

• Make some improvements: One of the best ways to achieve a higher offer on your home is to do some renovation. Depending on your time and budget, you may fix large structural issues or merely give your house a face-lift with a fresh coat of paint. Balance how much value the work will add to your property with how much money and time it will take.
• Present it well: You’re much more likely to attract distressed property buyers if your home is clean, uncluttered, and inviting. If the outside or inside of your property is messy and unkempt, potential buyers will be left with a poor impression. Staging your home well is vital.
• Set a fair asking price: Do your research and don’t ask for more than the property is worth.
• Honesty is the best policy: Be upfront with your buyers about any issues with the house, whether they are structural, financial, or legal. This prevents buyers from dropping out at the last minute or taking legal action against you in the future.
• Keep thorough written records: Remember verbal agreements aren’t binding and are challenging to prove in court.

For more tips on preparing your home for a sale, read Our top 5 strategies to help you sell your distressed house.

How to Sell a Distressed Property

When it comes to selling a distressed property, you have three choices: sell with a real estate agent, list it yourself, or work with a cash home buyer.

Real estate agents are most people’s first port of call when selling a home, and that’s understandable as it comes with a lot of benefits. Realtors have lots of experience and come with many contacts of potential buyers. They do most of the work for you, from advertising to organizing open houses. However, the housing market is fickle, and it can take months to sell in this way. Additionally, you will have to pay your agent a commission fee.

Selling your property yourself avoids real estate agent fees, and many homeowners like knowing that they are in charge of how, when, and to whom they sell. However, this method involves a tremendous amount of work. To do it successfully, you will need a lot of time and knowledge about your state’s real estate laws.

If you want to avoid the stress of listing your own property, avoid commission fees, and achieve a fast sale, selling to a cash home buyer could be the right choice for you. Companies that buy distressed properties, such as Meli, can often complete the sale, buying in cash, within just 30 days. They will buy your property as-is, so there’s no need to try and convince them with house selling tactics. It’s a simple and effective method.

Companies That Buy Distressed Properties

If you decide that selling your property in Central Florida as-is is the best solution for you, go to Meli. Just as the name suggests, the process is surprisingly simple. You could close on your house within 30 days of initial contact. We offer a fair price, handle all the fees, and can be flexible with your moving-out date.

For more information about selling a distressed property, contact Meli Homes today at (407) 338-4183.

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.

Image Credits

https://p0.pxfuel.com/preview/885/930/516/house-real-estate-agent-sold.jpg

https://www.pikrepo.com/fpfrs/damage-done-to-biloxi-by-hurricane-katrina-in-mississippi

https://c.pxhere.com/photos/fb/ab/paint_brushes_bucket_paint_can_white_interior_decorating_painter_painting-849996.jpg!d

When you hear the term “distressed property”, it might carry a negative connotation. However, there are several types of distressed properties with various factors, some invisible and some visible, that can explain the property’s current state and lack of upkeep. In many cases, the reason for your property’s distressed condition is something others are likely experiencing too.

Distressed property or those at risk of becoming one are common, and owning one doesn’t mean you have to be prepared to lose face. In fact, these are highly sought-after properties that can offer a unique opportunity to interested buyers and can be fixed or flipped to be transformed into desirable homes and real estate.

Here’s why there’s no shame in owning a distressed property and what you can do with yours.

What is a Distressed Property?

It’s can be useful to understand how different types of distressed properties are defined and how. This helps eliminate or lessen any feelings of discomfort or embarrassment around owning such property.

The term distressed property encompasses multiple definitions. The most common use for the term is to describe a property that lacks upkeep or one in which the owners are under financial stress, having missed property tax or mortgage payments. For a bank or lender, a distressed property is generally a home facing foreclosure or one with a tax lien. Health inspectors will identify a house with code issues as distressed.

No matter what, it’s not uncommon in Central Florida and across the country for individuals to possess a distressed property and need to sell their property quickly.

What Causes Distressed Properties?

Several events can cause a property to become distressed. When a property owner falls on hard financial times, it can become increasingly challenging to make mortgage payments, pay for repairs, or afford general upkeep. Losing a job, going through a divorce, and enduring a host of other financial and legal hardships can contribute to a property falling into disrepair or becoming distressed.

After the property becomes distressed, a homeowner may face legal consequences if they cannot pay their lenders quickly, including:

• Facing foreclosure
• Bankruptcy
• Liens and judgements
• Owed property taxes
• Code violations
• Home in probate

Regardless, it’s common for people facing this to keep their money troubles to themselves or to feel humiliated. Some homeowners may try to fight foreclosure or try to put what money they have available into their distressed property. They’re often ashamed to foreclose or fearful about the consequences of foreclosing. 

There is no indignity in cutting your financial losses and walking away from your distressed property. There are options outside of foreclosure available to owners of distressed properties, including modifications, selling as-is, and short sales. 

What are the Types of Distressed Properties and How are They Sold?

If you own a distressed property, several selling options are available to you that will enable you to pay off your debt and escape foreclosure. There are three main types of distressed property sales, each of which requires a unique selling process.

• Short sale: When a homeowner falls behind on their mortgage payments, they may want to consider a short sale. A short sale is when a house sells for less than the amount owed on the mortgage and typically happens during the pre-foreclosure stage. Once the lender approves the short sale, the homeowner will receive a Notice of Default from the lender. If they can’t pay the total owed mortgage within a given timeframe (usually three months), they may be able to make an agreement with the lender. If no funds are available, a short sale may be the best course of action to avoid foreclosure.
• Real estate owned: When a homeowner fails to make mortgage payments, the lender will issue a Notice of Sale, which commences the foreclosure process. Once the foreclosure is final, the lender becomes the owner and the distressed property becomes Real Estate Owned or REO.
• Abandoned or vacant property: If an owner has abandoned or left a property vacant, the property is then considered a distressed property.

What You Can Do With Your Distressed Property

If you are the owner of a distressed property or you’re unable to pay the mortgage, pay for repairs, or facing some other type of legal or financial issues, you may want to sell your property to avoid legal problems.

You can get rid of your distressed property with relative ease in one of three ways.

• Work with a real estate agent: You can hire a real estate agent to help you sell your home. The real estate agent will do all the work necessary to sell your home. This may allow you to sell it for a higher price than you could on your own. However, it could take awhile to find a buyer willing to buy it at the right price, and many real estate agents take a commission.
• Sell on your own: Instead of hiring a realtor, you can go solo and sell the property yourself. If you’re willing to do the work yourself, it might be tempting to avoid paying your real estate agent’s commission. However, “for sale by owner” can be a tedious and taxing process if you don’t know all the selling techniques. 
• Sell to a cash buyer: Selling to a cash buyer is a fantastic option for selling distressed property. At Meli Homes, you’ll close in less than 30 days, and we can purchase your home with cash upfront. We’ll also cover all closing fees, so you get as much from the sale as possible.

No matter which selling route you choose, it’s important to remember that plenty of fellow homeowners are in the same boat as you, with various types of distressed properties. It’s okay to cut ties with your distressed property in the way that works best for you, financially or emotionally.

Learn More Today

If you own a distressed home or property within Central Florida and you’re ready to sell, Meli Homes can help. Send us a message through our contact form today! We’ll get back to you within 24 hours to set up a plan 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.

Image Credits

https://pixabay.com/photos/house-abandoned-vacant-vintage-54570/

https://p1.pxfuel.com/preview/891/97/287/purse-wallet-money-finances-waist-bags-pay.jpg

https://pixabay.com/photos/people-emotion-dramatic-female-1492052/