It is important for struggling homeowners behind on mortgage payments to consider selling their homes to a home investor to avoid foreclosure. Foreclosure not only results in losing one’s home but also has tax and credit consequences. The IRS considers foreclosure as debt forgiveness, which means the homeowner may be taxed for the amount owed on the house. Foreclosure also remains on the credit report for more than seven years and can lower the credit score by as many as 150 points, making it difficult to secure housing in the future.
To avoid these consequences, homeowners can choose to sell their homes fast before foreclosure. Selling the home for cash to a reputable home buyer is a good option to consider. A short sale is another option where the homeowner sells the home for less than the amount owed on the mortgage, but this option requires approval from the lender and can take up to 120 days.
Selling to a home investor can help homeowners avoid the lengthy approval process as banks tend to move faster for cash sales. TWGUSA offers homeowners enough on an as-is cash sale to cover the remaining amount owed on the mortgage and more, giving homeowners some money for starting over.
Selling to investors can be done quickly, with a cash offer made within 24 hours and closing completed in as little as three days. It is important to note that attempting to remain in the home after a short sale is a form of mortgage fraud, and homeowners may be asked to sign an Arm’s Length Affidavit at closing.
Selling to a home investor can be a chance to downsize and realign one’s finances, paving the way for a better, brighter financial future.
