Selling your home “as-is” may be the quickest way to avoid foreclosure, but it requires accepting the reality that you will lose your house. However, selling as-is can help mitigate the financial and personal consequences of foreclosure, even if you’re underwater on your mortgage.
Although short sales may leave you with a deficiency balance, you can work out a way to pay it down over time, and it won’t be attached to your new residence. If you have a lot of equity, selling as-is may pay off your loan and leave you with a nice chunk of cash to start anew.
The only issue is that few potential homeowners are willing to buy a home as-is, as they want to move into their dream home right away without any new problems. This is where home investors come in. Reputable investors buy as-is houses all the time and can negotiate with banks to see the short sale through. Additionally, they typically offer cash for the sale, which is more attractive to banks than relying on another buyer who will need a loan.
However, it’s important to set realistic expectations about home investors. They will absorb the costs of fixing up your home, but they still need to make a profit to stay in business. Before accepting an offer from a home investor, research their reputation and ask them every question on your mind. Good home investors will happily answer.
