Ways to Sell Your House When in Financial Distress

Bonnie Van Gorder of Bonnie Buys Houses Fast!

People decide to sell their house for many reasons. If they’re doing well financially, it can be to upsize or right size to get the layout, design, location, or amenities they’ve always wanted. However, there are times when we need to sell due to financial hardship.

The Covid-19 pandemic has caused financial distress for many. Job losses, the loss of a loved one, illness due to the virus, or residual effects from the virus post-recovery, have created growing financial debt for many. Mortgages and bills remain unpaid, putting people into debt that is hard to dig out of.

Many mortgage companies will allow you to negotiate a forbearance -however, this is only a temporary solution. You will eventually have to pay back the payments you missed over a period of time or as a lump sum by a specific date.

Though vaccines for Covid 19 are being distributed, and a glimmer of hope can be seen, it may be several months to a year or two until jobs reach pre-pandemic levels and we return to a new normal.

Many businesses have been impacted forever and are closing their doors. Restaurants that could not pivot and serve curbside or delivery may never open again, meaning those jobs are gone for good. There are some new job opportunities, however, many tend to be in the healthcare industry, technology, or manufacturing of healthcare items. If you don’t have a background in those areas, finding a job can be a challenge.

If you decide to sell your house due to financial distress, here are four options you have to sell your home, get the most money for it, and help you get out of debt as soon as possible.

Option 1: List Your House With A Realtor in Colorado Springs

If you have equity in your house and the house is in good to excellent condition, you may want to list your house with a realtor. Selling for a profit is always preferred, and during this market, move-in-ready homes are in high demand.

If you do not have enough equity in the house to offset closing costs associated with selling a home or the house is in disrepair, your best option is most likely to sell the house as-is and hope to get enough money to pay off your mortgage and escape the financial hardship you’re in.

Option 2: For Sale By Owner

Another option is to sell the house yourself and avoid paying realtors’ real estate commission for their assistance. If your home is in disrepair and not move-in ready, this can help you break even on the sale instead of losing money.

However, managing a for-sale-by-owner without having real estate experience can be daunting. People may try to lowball you if the house needs updating or repairs. The paperwork and legal documentation that goes with selling a house can be complicated. You will have to be always available to show your house, and there’s the barrage of phone calls that you get when your house, townhouse, or condo goes on the market.

Option 3: Do Nothing & Go Into Foreclosure and Financial Ruin

The worst option is to stick your head in the sand and have your house foreclosed on. This will ruin your credit and will blacklist you so that you cannot buy a home for five to seven years or longer.

Option 4: Find a Reputable Real Estate Investor For Your House and Get Out of Debt

When you sell your house to a real estate investor, there are several advantages. The first advantage is that it’s quick. There’s no long-drawn-out negotiation process with inspections and objections to the condition of your home. Most real estate investors buy a property as-is.

Investors also buy with cash, so there’s no long-drawn-out bank approval, and it won’t take 30 to 45 days to close like a traditional real estate transaction. When an investor pays you cash, you can sell your house in as few as 10 to 15 days. Whether or not you have equity, the investor can usually pay the mortgage off and relieve you of your mortgage’s financial burden quickly. It allows you to move on with your life, rightsize, and reestablish your credit if it’s been damaged.

5 Tips to Find a Reputable Real Estate Investor for Your House

If you decide that dealing with a real estate investor is a good option, here are five tips to help you find an investor who will best serve your interests.

Research: do your due diligence and online research. Research many investors and choose an investor who has many good client testimonials and reviews. You want to work with an investor who has done enough business and has a good reputation with past clients.

When talking or negotiating with an investor, be sure you are talking to the decision-maker. This means you want to speak with the person working with you on the amount you’ll be paid for the house, the terms, and the paperwork.

It’s OK to ask for better terms or a higher price when negotiating. It’s part of the process. Would an investor like you to take the first offer they present? Of course! But your arrangement should be a win-win situation. The investor needs to make money, and the seller needs to get a fair offer.

Beware of investors who tell you their offer is only good for a short time and put undue pressure on you to sign an agreement.

Deal with someone you feel comfortable with and can trust. Integrity and trustworthiness is essential. Ask a lot of questions and do your homework. Online searching can reveal a lot about investors who lack experience or expertise.

As real estate investors in Colorado Springs, we at Bonnie Buys Houses Fast always strive to meet the criteria of a trusted investor. We have earned an extensive positive review record and have many great testimonials from clients. Our 17 years of buying and selling several hundred homes is a testament to our commitment to doing an excellent job for our clients. If you’re considering selling your house in Colorado Springs to a real estate investor, please consider our services.