Every financially struggling homeowner is aware of the advertisements that boldly says: “We Buy Houses for Cash”. And every single one of those owner’s have wondered if it is too good to be true. The advertisements can be seen everywhere these days, from lamppost boards to mailbox flyers. In today’s struggling economic times, those advertisements might be the answer to all their prayers.
To deal with companies that buy houses for cash, will only be beneficial to certain homeowners looking to sell. Typically, these are homeowners who are in financial distress or who need to sell quickly.
People who find themselves in the following situations would benefit a great deal from companies that pay cash for homes. These situations are:
- People who find themselves in bankruptcy.
- When a home is in foreclosure. A home goes into foreclosure when the owner stops paying his mortgage loan payments.
- Homeowners who are trying to evict tenants.
- Sellers who cannot sell or whose listing have expired.
- Houses that are damaged or trashed that will be too costly for the homeowners to repair or restore.
- Sellers who are divorcing
- Homes in probate. A home is in probate when someone dies intestate or without bequeathing their property.
- Homeowners whose employers are transferring them to a different state or country.
No fees and all cash
The companies that buy houses for cash do not take any real estate commissions. So you do not have to pay any real estate agent fees.
The company does not charge any fees as they process the sale in-house, meaning no outside service needed. The title policies and title insurance are all done in-house. The process eliminates all third party fees.
How do they pay
When these companies first came on the market, they were known as EP’s, which stands for Equity Purchase companies. These companies buy exclusively based on your equity position.
They will negotiate a price for your home based on your homes market value. They will take existing mortgage loans into consideration. The payment you receive is after all of that equity is taken into consideration.
You will receive your cash almost immediately after the sale of your house. Remember, you are still liable for any mortgage on the property. The company that buys your house for cash does not acquire the debt attached to the property.
However, should you not be in a desperate situation and do not need cash at hand immediately, you can consider listing your house in the hopes of making a bigger profit. There are other methods available for you to sell your home and still preserve your equity.