SELLING YOUR HOME TO AN INVESTOR Courtesy of LIVEforeclosureFREE.com
If you're considering selling your home to an investor you might want to understand the advantages and disadvantages of doing so. This is not legal advice in any way so check with your attorney if you question any of the following information regarding your situation. First and foremost, make sure you have done your due diligence (homework) about their company. Sign up for our free resources to receive interviewing questions you may ask the company. If it’s an individual, ask around town to those who might know him/her. Often when selling you are given a date to move out. Investors are able to negotiate when you will need to relocate and sometimes, (this is rare but it does happen) the investor might have a list of rental places in case you need some referrals of places to live. Some investor’s have been known to actually help you move in! Investors are not usually working in the capacity of a Realtor. There are no brokerage fees because investors, typically, are not realtors working for a firm. This is a very good advantage for you as a seller. Often, if the investor feels your home needs updates, or repairs, for either the interior or exterior, they will not require you to fix it. They will defer the maintenance and negotiate that in to the price of property. You will want to have an idea of how much your updates would cost if a contractor did them. If you can find someone who knows about rehabbing a property and ask them to come and look around to give you a “ball-park figure”, you will be ahead of the game in your negotiations. There would be no mortgage contingencies on your property. The investor would complete any and all contingencies on the property for you, often that would include back taxes, any liens, 1st and 2nd mortgages, sometimes utilities and they would deal with those companies for you. Again, this is if you find an experienced investing company to work with. They would not typically require home inspection contingencies. The standard is to do their own home inspections since they are experienced in that task and they know what to look for. They will typically take plenty of pictures to confirm the updates or repairs needed. A good advantage if you sell to an investor is that you will not have a foreclosure on record, unless you wait until its too late. This is probably the number one reason why people want to work with investors.
Numerous people have benefited greatly by selling their property to an investor. If you can prevent a foreclosure by working with an investor then do it. Have confidence in your ability to ask questions and get answers. Being emotionally attached to your home is tough, and investors who are sensitive to that might help you out as much as possible, but they cannot allow you to live in the home. That choice would become suspect to mortgage fraud. If you are offered that by any company check with your attorney before signing any type of agreement. Unless you have been given a loan to reinstate your mortgage, with agreed upon terms of the loan in writing, you would stand to lose more in the end. Some ways that are suspect: Homeowner must pay a monthly profit to the investor Homeowner gets half of the profits when the house sells (partnering) Homeowner signs a land contract and no deed is filed in the registry. There are people who will do anything to stay in their homes, but mortgage fraud is not a good option and I would caution anyone who is told they can remain in the home to communicate with an attorney to be certain you have fully understood your legal rights and limitations. The investor might want to have the ability to work on the property and will either ask for permission, or state they need to begin the work while you are still occupying the home. If you choose to allow it, get a copy of the investor’s liability insurance to be sure the investor has proper insurance to cover his workers in case someone gets hurt on your property. You do not want to be liable if an injury occurs while you are still in possession of the property. You might also want to check with your own attorney or insurance company for more information. To work with an investor who knows what they’re doing would be hassle free. This happens numerous times in today’s society, as does the opposite, so again, do your due diligence (research) on the company and be confident you are making the right choice. Knowledge is power as the saying goes. The more you know about your situation, the more powerful your confidence and decision-making power will be. Stay focused, stay determined to make the highest and best choices for your future and you will come out a winner!
Kellie
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