Are you on the brink of foreclosure, and trying to decide what to do? You can stop foreclosure by selling your home. Here are a few reasons why a cash sale is a good decision.
It protects your credit
This is the most important reason to avoid foreclosure. Going into foreclosure puts a black mark on your credit, and it will stay there for seven years. This will severely impact your ability to get a loan, or even rent an apartment. And, when you are finally eligible to qualify for a loan again, you will find that you’ll be put under much stricter requirements.
As long as you don’t have late mortgage payments (60 days or longer) on your credit report, if you sell your home, according to Fannie Mae guidelines, you should be eligible secure a loan to buy another home immediately.
You’ll save money
The average legal cost to go through a foreclosure is around $7,500, according to the U.S. Congress Joint Economic Committee.
If you go into foreclosure and the bank sells your home, it might not be enough to cover the balance you owe. The bank could come back to you with a deficiency judgment, which means you are still responsible for the remaining balance on your mortgage, even though you no longer own the house.
Let’s not forget taxes. After foreclosure, you’ll still owe income taxes on any forgiven mortgage loan balance.
Ideally, when you sell your home for cash, you’ll be able to cover the full balance of what you owe on your mortgage and move on without fear of any further legal backlash.
At Keller Home Solutions, we buy homes “as is”. This means you won’t have to worry about spending any funds on repairs or upgrades for your home, as you might have to do with a traditional listed sale.
Foreclosure proceedings can be stressful. The worries about the serious hit to your credit, the demand letters piling up in your mailbox and the confusing legal process, as well as the negative stain of foreclosure can be a lot to endure. Sadly, you might also become a target of scams from opportunists trying to take advantage of your situation.
When you sell your home with Keller Home Solutions, we’ll buy your home for cash. This means that there will be no need to secure financing with banks, which involves lots of time and uncertainty. When a buyer applies for a loan, they are on the bank’s timeline, not yours. It can take weeks to close, rather than just days with a cash sale.
There is also more potential for road blocks with a sale involving financing. You might receive a low appraisal, or the sale could fall through if the buyer is not approved for a loan.
When you do a cash sale, you also avoid contingencies. These clauses allow the buyer back out of the sale if the contingencies are not met.
Opting for a cash sale with Keller Home Solutions is the swift, hassle-free way to sell your home and avoid foreclosure.
Control your own destiny
Selling your home on your own terms versus being at the mercy of the bank is empowering. The feelings of shame and failure during a foreclosure can be demoralizing to you and your family. When you decide to sell your home yourself, you are taking control of your situation and moving on with your life — this is no small thing.
Take the opportunity to get closure and move on from this chapter and make a fresh, positive change in your life.
Benefits for your neighbors
When neighborhoods are full of vacant, foreclosed homes, the property values drop. Selling your home can help to preserve the property values of your neighborhood, to keep the area desirable for prospective buyers.
Ready to move forward with selling your home? Contact us at Keller Home Solutions. We’re an Austin-based investor with local experience. We can offer you a fair market price on your home, all in cash and with a quick turnaround time.Tags: credit, foreclosure, neighborhood, taxes