What is a Distressed Property?
A distressed property is a house or piece of land that is going through a foreclosure or is being sold by the lending institution. When a homeowner is no longer able to make mortgage payments or pay the taxes on the property, the house becomes distressed
. As a result, the bank or mortgage company may take over the property, attempt to sell it, and try to recover as much of the loan as possible. Not every piece of distressed property in the DMV area is taken over by the bank due to non-payment. In some cases, the homeowner may abuse or neglect the house, allowing it to get in poor condition. As a result, the mortgage company may reclaim the house to protect their investment. Let's take a closer look at what distressed property is and how you can sell your distressed property fast
in the DMV area.
Three Types of Distressed Properties
1. Short Sale
A short sale occurs when the bank attempts to sell your house fast at a reduced price below the balance of the loan. The buyer may be a third-party. All proceeds from the short sale go to pay off part or all of the mortgage. As a homeowner, you may believe that you can walk away from a short sale without incurring any penalties. However, it is not as simple as you think. First, a short sale can reduce your credit score by up to 150 points. A drop that steep can make it difficult for you to get a mortgage on another home any time soon. In addition, you may still owe the bank if the selling price of the house is below the loan balance.
2. Real Estate Owned (REO)
REO stands for Real Estate Owned
property. If you stop making payments on the mortgage, the bank may foreclose on the house and sell it at auction or as a short sale. If the bank is unable to sell the house, it may assume ownership of the property. However, ownership is only temporary, as the bank will continue to try to sell the house. For instance, the lender may list the house online and attempt to sell it without going through a real estate agent. A loan officer or REO specialist may widely publicize the listing and notify any potential buyers that the house is on the market. Depending on whether you are living in Washington, D.C., Virginia, or Delaware, you may be able to buy back the house during the foreclosure period.
3. Trustee Sale or Foreclosure
If you fail to make your mortgage payments, your house will eventually go into foreclosure
. As the owner, you forfeit any ownership rights to the property. You essentially walk away from the property. The bank then repossesses the house and attempts to sell it. Delaware, Washington D.C., and Virginia all have strict laws regarding foreclosure. Lenders are required to provide ongoing communication with homeowners, options for how to avoid foreclosure, and a redemption period that can range from three to six months. During the redemption period, you may be able to reclaim your house or try to sell your house fast to a local house buyer in the DMV area.
How to Avoid Foreclosure in DMV
The fastest way to avoid foreclosure in DMV is to sell your house fast for cash
to a local house buyer in the area. The process is simple:
Step 1: Schedule a Visit with a Local House Buyer
The first step is to pick up the phone and call one of our local house investors in the Alexandria, Virginia area. Simply schedule a quick walk-through of the property. There is no need to make any renovations, prepare the house to show, or even clean up. We are happy to view the property as-is.
Step 2: Let Us Make a Fast Cash Offer
If we decide we want to move forward with buying the property, we'll make a competitive cash offer based on a percentage of the house's value. We can negotiate a fair cash offer that puts money in your pocket and allows us to make a good investment.
Step 3: We Pay You Cash
Do you like the offer? Then schedule a closing date that works for you. We show up, sign the papers, and pay all closing costs and fees. You pay nothing. We can pay cash in as little as seven days after closing.
The Benefits of Selling Your House for Cash
Today, the real estate market is unreliable at best. There are no guarantees that you will sell your house, get the asking price you want, or make a profit after you pay closing costs, realtor commissions, and repair costs. There are several reasons why selling your house for cash is a better option:
- You pay no closing costs, realtor commissions, or other fees.
- There is no reason to renovate, repair, or prepare your house.
- You can avoid listing or showing your house to potential buyers.
- Choose your closing date without waiting.
- We buy your house as-is ? don't bother cleaning it.
- You work with a local house buyer in the DMV area.
- We make a fair, competitive offer just under your house's market value.
With all the benefits of selling your house for cash, you owe it to yourself to explore it as an option. Let us take your property off your hands. You walk away free and clear with no strings attached.
Let a Local House Buyer Help You Avoid Foreclosure
Do you live in Washington, D.C., Maryland, or Virginia? If so, contact Fortune Houses today. Sell your house fast for cash in DMV and the surrounding area. We buy houses as-is in any condition. Call 202-918-9600 to schedule a quick, no-obligation visit with one of our local cash house buyers. Our company purchases property as-is in the following areas: