Wednesday, January 21, 2009

Sell Your Home To An Investor to Avoid Foreclosure

Often times homeowners have reasons to want to get out of their home quickly and avoid  foreclosure with the least amount of work and risk.  For these people selling to an investor may be their best option.

Selling to an investor to avoid foreclosure allows homeowners to:  close quickly; sell their house in  “as-is” condition with no contingencies (retail buyers are going to want things fixed, and will require a home inspection, etc); oftentimes be paid in all cash and immediately halt the foreclosure as soon as the title is transferred.  Sometimes homeowners will find flexibility on their move out dates and may find that an investor will assist him or her in finding a new place to live.

However, the downside to selling to an investor to stop foreclosure is that the homeowner will have to move to a new home and will not receive retail price with all cash offers.  Some investors may be able to provide a full retail value if they can find equity in the house upon rehabbing the property or purchasing the home subject to the homeowner’s existing mortgage.

Selling to an investor is usually the quickest and easiest option to avoid a foreclosure while retaining some equity in the home, if any exists.  If you consider selling to an investor you should work with someone who invests in your community who knows your market and can facilitate a quick and smooth transaction.

There are a lot of great investors out there who can help homeowners by buying their home from them.  Unfortunately there are some investors who may not have the best interest of the homeowner in mind.  If you choose to sell to an investor, it is important to work with a well-respected investor who can provide you with recent homeowner referrals and testimonials.