If your home is facing foreclosure, you’re not alone. Nor should you feel ashamed. In 2018, it was estimated that 10% of all mortgage holders in the United States believed that they would likely face foreclosure. It can be difficult to stay up to date on your mortgage payments, especially when you’re dealing with economic uncertainty. This is a reality facing countless Americans in today’s world, especially in the midst of a pandemic.
But rather than letting your home fall under foreclosure, which would have long term effects on your credit, you may want to consider selling it. Selling your home before it is auctioned off by your lender would potentially allow you to clear your debts. If you’re going to lose your home anyway, why not do what you can to avoid the impact on your credit? This means that you would need to sell your house fast. However, if you sell to cash buyers in North Carolina, this could actually be more feasible than you think. With that in mind, let’s explore what you should and shouldn’t do if you’re considering selling to investors that offer cash for homes.
Do: Research The Buyers First
There are multiple cash buyers in North Carolina, which means that you’ll need to do some research before settling on the one that is right for you. Don’t immediately assume that the buyer offering the most money is the one that you should go with. If their offer is significantly more than what other investors are offering, it could very well fall through down the road. Read reviews online to get a sense of who is trustworthy and who isn’t. You may also want to consider asking around to see if you can get a community recommendation.
Don’t: Make Any Repairs To Your Home
Normally, the home selling process would involve making repairs to your house before it hits the market. This is generally a part of getting the most money for your home possible. But if you’re already facing foreclosure, this would be yet another drain on your finances, and not worth the cost. Cash buyers in North Carolina usually buy homes as-is. This means that they don’t want any renovations to be done, and they won’t expect you to pay for any repairs that they conduct. Any repairs you make would therefore be a waste of money.
Do: Take Your Home Off The Traditional Market
Once you’ve decided to sell your house directly to cash buyers, there is no point in advertising it on traditional platforms, like real estate websites. Again, this could actually be a drain on your finances, and most investors that offer cash for homes do not simply stumble upon those homes. Rather, you would be getting in touch with them directly. Now is the time to be proactive.
Don’t: Work With A Real Estate Agent
Most sellers that sell their homes to cash buyers in North Carolina do so through the for sale by owner process, otherwise known as FSBO. This means that they are not represented by real estate agents. And why would they be? As you would be approaching buyers directly, you do not need to work with a realtor. A real estate agent would actually take away from your profit margin, as they take commission from the sale of the home. While you may be familiar with the idea of working with a real estate agent, their services are not necessary for the sale of a home to an investor.
Do: Contact Your Lender
Once you have found a potential buyer for your home, you need to contact your lender and let them know about every step of the process. This way, you can hopefully delay your home hitting a foreclosure auction. The great thing about a cash sale is that it’s usually fairly quick. However, you should be open with the buyer about any potential time limitations.
Selling a home to avoid a foreclosure can be stressful, but it’s far from impossible. Be aggressive and work fast to sell your home to a cash buyer, and you may be able to avoid the consequences of foreclosure.