In this difficult economy, home owners are finding it challenging to sell their homes due to the drop in housing values since 2007. Add to that, the many home owners who's mortgages are underwater - they owe more than their home will sell for in this market.
But don't despair. Real estate investors like myself are always in search of properties to buy - both to keep as rental properties, or to renovated and resell. So how do you find investors, and how do you work with them? How do you know if they are trust worthy and not misleading you, or trying to scam you?
How do you find them? Well, if you found this web page - then you successfully found me! But I will tell you some important questions to ask an investor that you are thinking of selling your home to that will help you determine their honesty and professionalism.
But first, I will tell you some ways that investors buy houses in this market. Perhaps some of these situations apply to you.
1 - SHORT SALES; If you owe more than your home is worth in this market, then perhaps a short sale might be a solution for you. Here is how a short sale will proceed. I will put an offer in on your property for less than the mortgage amount. My realtor will list the property for sale as a short sale, and will then submit my offer to the your lender. We will also have a short sale negotiator who will be the main liason person who will communicate and negotiate with the lender. The lender reviews the offer, sends a representative to assess the value of the house, and either negotiates a new price, or accepts the offer. At the same time, we also negotiate with the lender to "forgive" the balance of the loan so that you are not responsible for the deficiency. We then go to settlement and the sale is concluded. Many lenders are currently overwhelmed with a large volume of short sales - so this entire process usually takes from 60 to 120 days.
2 - PRE-FORECLOSURE: If you are behind on your mortgage payments, we can discuss purchasing your home for an amount that covers all that is owed, including late fees or attorney fees - and depending on the situation, the condition of your home, etc. we may be able to pay over the amount owed, plus closing costs.
3. - MORTGAGE BALANCE WITH EQUITY: If you owe a mortgage balance, but still have equity in your home, we can purchase your home at a price that we negotiate with you. We typically pay cash and can close whenever it is convenient for you. No repairs or clean outs are needed since we buy "as is."
4 - NO MORTGAGE BALANCE. If your home is free and clear of all mortgages or liens, we can discuss a variety of options for buying your home. We can pay cash at a discounted rate - or if you are willing to do "owner financing" and hold the mortgage note for a short term loan (typically 5 to 7 years) - this is the best scenario since we can offer your full asking price!
Questions to Ask an Investor Who Wants to Buy Your Home
As in any business, there are honest, friendly, courteous and professional people - and then there are the few who don't do things right and ruin it for the rest of us. Here are some questions to ask any investor who is interested in buying your home.
1 - How long have you been buying properties? How many have you bought in the last 3 years?
My Answer: I have been buying and selling properties since 2002. In the last 3 years, I have done approx. 25 real estate transactions. I have also been a realtor since 2003 and make a point to disclose as much information as possible to a home owner so that they understand the process from beginning to end.
2 - Can you provide the names and contact info of home owners who you have purchased from?
My Answer: Absolutely. I would be happy to provide you with references from home owners I have purchased properties from.
3 - Can I have my attorney look over the documents?
My Answer: Yes, I encourage you to have an attorney review any documents you are signing.
4 - Can I change my mind after signing an Agreement with you to sell my house?
My Answer: I want you to take your time, review all the documents with your attorney, get all your questions answered, and then sign the agreement to sell - ONLY when you are sure you want to go forward.
So, if you really do need to sell your home fast, we are happy to discuss your situation with you and see what options would be helpful to help you accomplish your goal.
Please feel free to contact me anytime to talk on the phone or by email and get your questions answered.
Kathy Gilmore
Kreative Home Buyers, Inc.
610-212-4330
kgrei03@yahoo.com
