Dealing with Distressed Property
If you need to sell your home to avoid foreclosure, you owe outstanding taxes you cannot pay, or your financial situation makes paying your mortgage near impossible, you’ll want to know more about Distressed Properties, what they are and what to do if you have one.
What is Distressed Property?
When you cannot pay your mortgage, your home is foreclosed upon. This means that the bank takes the house and sells it. You lose all the equity you’ve built up over years of house payments, and they get the value of your home sale and have a foreclosure on your credit
Your property also becomes distressed if you owe taxes that you cannot pay. This is why most lenders keep taxes in escrow for you – it’s to protect you from a giant year-end bill.
What Can You Do If You Can’t Make Your House Payment?
Negotiate with Your Lender
Many lenders have offered some type of adjusted schedule for house payments in 2020 because of the pandemic. Some will allow a deferment of payments or other arrangements so you can stay in your home. There is not yet an extension on foreclosure protections from Congress, but it is worth your time to call your lender and discuss options.
Short Sale
Homeowners facing foreclosure may be willing to do something called a short sale, according to Rocket Mortgage. In a short sale, the mortgage is more than the home is currently worth so the owner may accept an offer from a buyer to keep themselves out of foreclosure. ZVestors offer short sales in certain circumstances.
Foreclosure
Foreclosure is the last resort for any homeowner. This is only undertaken if there is no way to make payments due to job loss or other catastrophic situation. If you stop making payments on your house and walk away, the bank will foreclose. This basically means they will take the property back. They then sell the property for cash, often at a big discount. Banks don’t want home inventory; they want cash value. And your credit history will suffer seriously from this substantial default.
Call ZVestors
ZVestors specializes in Distressed Properties. Often before a home is foreclosed upon, ZVestors can make a cash offer and purchase your home, even if it is an underwater property. Closing takes place in just a couple of weeks and there are no fees. ZVestors can even pay for your move, taking all the stress out of the transaction. We buy distressed homes in Washington DC, Maryland and Virginia.
Looking for Distressed Properties to Purchase?
First, you should know that homes at auction sell for cash, so you can’t take out a loan to cover the cost. Often, it is best to contact a real estate agent about foreclosed properties in your area, but there are tools available for you to do research on your own and avoid realtor fees. Check out Foreclosure.com
You can also investigate REO properties. According to HSH, “A real estate owned (REO) property is one that has reverted to the mortgage lender after the home fails to sell in a foreclosure auction. Once the bank owns the property, it typically handles any necessary eviction, pays off tax liens and possibly even does some repairs.”
ZVestors often has inventory of distressed property. Call (703 259 0570) or email (info@ZVestors.net) to learn more.
About ZVestors
ZVestors is a real estate investment company that buy houses for cash, as-is. ZVestors will make an offer to buy your house for cash if your property is in the DC metro area, Maryland or Virginia. We are committed to making the process of selling your home simple and straightforward, and our buying agents take building relationships with clients seriously.
The buying agents at ZVestors can give you honest, reliable feedback on your home’s value. Call (703 259 0570) or email (info@ZVestors.net) us today. There is no pressure, no listing fee, and our team is happy to build your offer right away.