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Looking to sell your home? Have you heard of Cash Buyers?

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Introduction:

Selling property these days can be a big hassle. As we’ve progressed with time, so have our requirements for quick solutions. Consequently, we’re increasingly seeking alternative methods beyond conventional means in nearly every aspect of life. One such hassle has been to sell your property. To put things into perspective this painstakingly difficult task can be accomplished through “conventional” methods, yet they come with their drawbacks as you will see below.  

The Conventional Models:  

  1. The traditional real estate agent model:   

This remains the dominant method for selling homes in the USA and involves hiring a licensed real estate agent to list, market, and sell your property. 

Agents handle negotiations, paperwork, and guide you through the entire process. And not to forget the commission of 5% to 6% of the home’s sale price or 2.5% to 3% per agent. 

This also involves the customer to whom the property on the show is the ideal “Dream Home”. 

     2. For Sale by Owner (FSBO):  

  • FSBO sales offer an alternative for those seeking to save on commissions, but they require significant effort.  
  • As a Seller one needs to handle the entire process by themselves, without the assistance of a real estate agent. This includes marketing, showings, negotiations, and paperwork.  
  • Similar to the Traditional Real estate agent model this comes with the wait for that ideal customer. 

 The Solution 

“What is the solution to this peril?” People might ask, and this is where Elite Properties comes in. 

At Elite Properties we make the tiresome undertaking of selling a house quick and seamless. No longer do you need to wait for the agents to get back to you, or wait for the right buyer, or those frustrating open house weekends. Moreover, we buy house for cash. 

How Cash buyers at Elite properties Eliminate all the fuss that comes along with the Conventional means of selling houses: 

  1. Speed and Convenience:
  • Fast Closing: Unlike Traditional home sales which can take months as it involves appraisals, inspections, and mortgage approvals. Cash buyers at Elite Properties close the deals in a matter of days or weeks, significantly reducing the time taken to complete the transaction. 
  • Reduced Hassle: Cash sale helps you to bypass the lengthy process of staging, showing, and negotiating with multiple potential buyers. 
  • No Contingencies: Cash buyers typically purchase homes “as-is,” eliminating the risk of deals falling through. Unlike traditional buyers who may have financing or inspection contingencies.

  1. “As-Is” Sales:
  • No Repairs or Renovations: The main issue when selling a house comes down to its condition. If it has a lot of wear and tear and needs fixing, it may have a negative impact on potential buyers. spend a significant amount to fix a place they are eventually going to sell.  But when it comes to Cash Buyers, they are willing to buy houses is “As-Is,” meaning there is no need for the owner to invest time and money for any repairs and renovations before selling, which can cost a lot these days. 
  • Perfect for Distressed Properties: If you’re staring down a mountain of repairs, or the shadow of foreclosure looms, finding a cash buyer is the most viable option.

  1. Certainty and Security:
  • Guaranteed Sale: In a world of uncertainty, a cash offer is one of the, if not the best deal, at least compared to traditional sales. One completely avoids the uncertainty of mortgage approvals or dealing with buyers who back out. 
  • Simplified Process: The benefits of Cash offers are that these are streamlined transactions that do not carry the stress and anxiety that accompany traditional real estate sales.

  1. Financial Benefits:
  • Quick Access to Funds: Selling for cash allows sellers to quickly access their equity, which can be beneficial for various financial needs.
  • Reduced Closing Costs: Having fewer closing costs compared to traditional sales is why Cash Buying is often potentially more cost effective. 

Conclusion: 

For those seeking a quick, convenient and hassle-free transaction, selling your home to a cash buyer is the way to go. With offerings such as fast transactions, assured deals and financial advantages, cash sales prove to be a compelling alternative to the traditional methods of sale. If you are considering selling your property you need to look no further as Elite Properties is your one stop solution for not only selling but buying and renting properties.  

 

Frequently Asked Questions (FAQs)  

  1. Who Exactly is a Cash Buyer?
    A Cash buyer can be an individual or a company that is into the purchase of properties by utilizing their own funds with no dependency on traditional mortgage financing, they will buy homes for cash

  2. Is a cash sale faster compared to a traditional sale? If so, then by how much?
    Unlike Traditional sales which usually take several months due to inspections, approval of mortgages and other contingencies, cash sales get completed within days or weeks. 

  3. Is there a need to do any repair work or renovations before selling to a cash buyer?
    Cash buyers usually purchase homes “as-is,” meaning there you don’t need to invest in repairs or renovations .
     
  4. What is the meaning of “as-is”?
    Out of all the benefits that come with selling a property to a cash buyer the main one is being able to sell it by making repairs or improvements, hence “As-is” means the buyer agrees to purchase the property in its current condition. 

  5. Are cash offers lower than traditional offers?
    While Cash offers sometimes may be slightly lower than what the potential market value might be at the time, it negates the staging, holding and repair costs, balancing out the difference.

  6. Who Should Consider a Cash Buyer? 
  •   Homeowners facing foreclosure or financial hardship.
  •   Individuals looking to relocate quickly. 
  •   Those inheriting properties they don’t want to maintain. 
  •   Sellers with homes requiring extensive repairs. 
  •   People seeking a hassle-free, fast sale and Cash for home 
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Foreclosure vs. Short Sale Which Is the Better Option for Homeowners

Foreclosure vs. Short Sale: Which Is the Better Option for Homeowners?

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Introduction

Homeowners facing financial difficulties often find themselves at a critical crossroads: Foreclosure vs Short Sale, which is the better option? The critical nature of mortgage debt demands homeowners need to grasp the consequences of both foreclosure and short sale before making a final decision.

When homeowners must exit the mortgage market through foreclosure or short sale, they encounter completely different financial as well as credit and emotional outcomes. Further in this blog,  it explains how to compare different choices along with their effects, as well as presents evidence that showing your home to someone who pays cash makes the most financial sense. The blog presents strategic approaches combined with methods to handle these situations while strengthening financial security for the future.

Understanding Foreclosure: How It Works & Its Consequences

A homeowner’s inability to make mortgage payments allows lenders to start legal foreclosure proceedings that end with the sale of the property. The home selling process in foreclosure typically follows these steps:

  1. Missed Payments: Repeated payment default triggers the lender to send out a Notice of Default (NOD).
  2. Pre-Foreclosure Period: Homeowners during the pre-foreclosure period have the potential to pay off their debt while attempting negotiations with lenders to perform short sales.
  3. Auction Sale: Property sale through auction happens when all attempts to find solutions fail and the property is sold at prices lower than market value.
  4. Eviction & Credit Damage: After auction failure, the lender becomes property owner, which results in homeowner eviction while their credit score suffers damage.

Consequences of Foreclosure:

  • Severe credit damage: The process of foreclosure damages credit score severely by 100 to 160 points and stays visible on reporting systems for seven years.
  • Legal implications: The law allows lenders to obtain remaining debt known as deficiency balance after foreclosing on a property.
  • Loss of control: When the homeowner has to go through foreclosure, the lender stands as the leader in all decisions, thus restricting the homeowner from making choices about the property’s end sale.
  • Difficulty in future home purchases: Multiple mortgage providers tend to avoid granting loans to people with recorded foreclosure activities.

The Short Sale Process for Homeowners: A Viable Alternative?

Short sale is where the homeowner sells the property below the outstanding mortgage value, but with the lender’s permission. The Homeowner’s Short Sale Process is the following:

  1. Contacting the Lender: The homeowner must prove financial hardship and request short sale authorization.
  2. Listing the Property: The property is put on sale, typically at market value, with the lender’s consent.
  3. Negotiation & Offer Approval: Upon receiving an offer, the lender must approve the price and terms of sale.
  4. Closing the Deal: If approved, the property is sold, and the lender forgives the balance or negotiates a payment schedule.

Advantages of a Short Sale:

  • Less impact on credit: Credit scores will typically drop by 50-120 points, and the short sale is on the credit report for four years or less.
  • Faster financial recovery: Homeowners can qualify for a new mortgage sooner than they would after a foreclosure.
  • More control over the sale: The homeowner actively finds a buyer and negotiates terms.
  • Potential debt forgiveness: Most lenders forgive the unpaid balance of the mortgage.

Foreclosure vs. Short Sale: Head-to-Head Comparison

Factor Foreclosure Short Sale
Credit Score Impact Severe (100-160 points lost) Less severe (50-120 points lost)
Time on Credit Report 7 years 4 years or less
Ability to Buy Again 5-7 years 2-4 years
Process Complexity Automatic lender repossession Requires lender approval
Financial Relief No negotiation, full debt may still be owed Possible debt forgiveness
Control Over Sale None (lender controls it) Homeowner negotiates sale
Emotional Impact Stressful, damaging to reputation Less stigma, more control

Selling a Home in Foreclosure: Is a Cash Buyer the Best Escape?

If facing foreclosure, selling to a cash buyer can be a smart, fast alternative to either foreclosure or a short sale. Here’s why:

  • Quick closing: Cash buyers can finalize the sale in days, preventing foreclosure.
  • No lender approval required: Unlike a short sale, cash sales bypass the need for lender approval.
  • No repairs or realtor fees: Cash buyers buy houses in as-is condition, making it cheaper and quicker for homeowners.
  • Less stress and uncertainty: Homeowners eliminate lengthy negotiations and foreclosure proceeding risk.
  • Elite Properties deals in homes in as-is condition, which makes the transaction quick and easy.

Which Is the Better Option for You? A Decision Framework

Short Sale is the Better Option If:

  • You prefer to avoid credit damage.
  • You can still negotiate with your lender.
  • You desire an opportunity to purchase a home again earlier.
  • You are willing to undergo the lender-approval process.

Foreclosure is the Only Option If:

  • You have depleted all Avoid Foreclosure Options (loan modifications, refinancing, etc.).
  • You are unable to sell it or negotiate a short sale in time.
  • You are unwilling or unable to pursue the home selling process further.

Selling to a Cash Buyer is the Smartest Move If:

  • You need to sell a foreclosure home fast with less stress.
  • You don’t want to deal with lender negotiations.
  • You want a quick, easy transaction with cash payment assurance.
  • Elite Properties provides a hassle-free cash-buying experience, allowing homeowners to avoid foreclosure through an instant sale.

Conclusion: Making an Informed Decision

It is not an easy decision to choose between foreclosure and a short sale, but having the final impacts of each in mind can help the homeowner feel secure in a decision. In most cases, a short sale is a preferable situation for homeowners who want to avoid further hurting their credit while regaining financial health sooner. Yet, under the circumstances that time and solutions are short in supply, foreclosure may be the only way.

With no repairs to perform, no holdups in lender approval, and a quick closing process, Elite Properties provides an easy way to sell an ugly property. Taking proactive measures, seeking professionals, and examining all the possibilities can become the turning point in having a secure future financially.

Ultimately, it will depend on your financial situation and future needs. The important thing is to act early, shop around, and select the option that reduces harm and maximizes recovery and future home ownership opportunities.

Frequently Asked Questions (FAQs)

  1. What is the primary distinction between a short sale and a foreclosure?
    Short sale is a sale by the homeowner with the permission of the lender, while foreclosure is a legal process initiated by the lender after missed mortgage payments.
  2. What is the impact of short sales and foreclosures on credit scores?
    Foreclosures cause a more significant drop (100-160 points) and stay on the report for seven years, while short sales cause a smaller drop (50-120 points) and stay on the report for four years.
  3. Can I buy another residence after a short sale or foreclosure?
    Yes, but the waiting time is different. A short sale permits a new mortgage in two to four years, whereas foreclosure usually takes five to seven years.
  4. Are short sales and foreclosures taxable?
    Yes, forgiven mortgage debt from foreclosures or short sales could be taxable income. Talk to a tax professional.
  5. Can foreclosure be prevented?
    Indeed, options are a modification of the loan, refinancing, short selling, or cash sale. The best course may be determined through professional guidance.
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How COVID-19 Has Affected The Foreclosure And Short Sales Market

How COVID-19 Has Affected The Foreclosure And Short Sales Market

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COVID-19; A horrifying pandemic crisis that the world is facing right now. As the situation is affecting many sectors around the globe, real estate isn’t left behind. The raging effect of COVID-19 has created a major void in the market. This resulted in a huge downfall with respect to the world market and economy. Let us look deep into the Foreclosure And Short Sales Market.

Many services offered by the real estate market like walkthroughs, rentals, etc. had been hard hit by the virus. As these aren’t the only services that have suffered, other facilities like foreclosure and short sales have also been adversely affected. In this blog, we will tell you How COVID-19 has affected the Foreclosure and Short Sales Market.

The Imprint of Coronavirus on the Foreclosure and Short Sales Market

As everyone is witnessing the catastrophic situation of coronavirus, its effects are also visible with respect to the economy. The loss industries have been facing is immense and would take a while to make up for the loss. Although, the foreclosure market is going through an uptick. According to the research by FTSE (Financial Times Stock Exchange) and REITs (Real Estate Investment Trusts) says there’s an evident index downfall of approximately 7.7 percent (noted on March 9, 2020).

If this goes on for some time, it would be difficult for homeowners to keep up with the monthly mortgage payments. It will later result in increased foreclosure cases, although it is tough to predict the real estate market. As facts state, in some states, the mortgage payments are being held for some time until the pandemic contains.

Coronavirus has Pushed Mortgage Rates Lower

The coronavirus outbreak has made the Federal Reserve take two emergency rate cuts. This apparently brought the bond yields to almost zero. The usual 30-year-fixed-rate-mortgage has dropped to 3.29% (noted on 5 March). As stated in the records, previously the 30-year-fixed-rate-mortgage was lowest in the year 2012 amid the recession when it hit 3.31%. Additionally, the 15-year-fixed-rate-mortgage also fell by 16 basis points to 2.79% according to Freddie Mac.

The main cause of the mortgage rates slump is because of the treasury market which has sunken with a lot of margin in the past months. Furthermore, the uncertainty of mortgage rates shall remain in the ditch for a long period.

Corona on Short Sales

When businesses are close around the globe and many of them can’t go on their jobs. So, homeowners have no choice but to sell their houses for a living. Homeowners with no jobs have the only choice but to sell their houses for the bare minimum profits. This measure is to perform their regular routine and satiate their daily needs. A short sale can cost less than a foreclosure to the lender. This always proves to be the most viable way for lenders to minimize the loss and improve profits. Additionally, a short sale might not damage the credit score of a homeowner.

If you have a hefty amount of mortgage to repay then your only possible option is to fulfill the amount. You can do it by selling your house to a cash-buying company.  As there is a rapid increase in short sales it is evident that problems like unresponsive lenders, misplaced documents, erroneous or unrealistic home value assessments, and prolonging processes may make the whole process difficult. In such a chaotic situation, Elite Properties is one such company that will help you sell your home fast for cash on a fair market value. We also buy your house as-is. We won’t ask for any lengthy documentation process, which automatically cuts the hassles of a troublesome sale.

You can call us at 7189775462 or visit us at Elite Properties NY to learn more about the home selling process with us. Where everyone around the world is going through the pandemic crisis we’ll help you be at ease with the home selling or short sale process.

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Top Things To Know Before Proceeding With Short Sales in Real Estate

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Are you trying to sell or buy a property under short sale?

You probably must have heard the term “short sales” a lot in these past years. Short sales are something we hear more often when it comes down to the real estate area. Short Sale meaning isn’t something every commoner will understand. So, let us be more clear on the topic here. A short sale is when someone sells his house, with the awareness and approval of the mortgage lender for less than what he/she owes to the lender. If the lender accepts the terms, then you can proceed with selling the property.

For example, consider you’ve defaulted on the payments and your mortgage lender has filed a foreclosure in the bank against the property. Panicking won’t do anything when you are facing foreclosure. You can talk with the lender and put your property on short sale hoping for other buyers to buy the property. So, you owe your lender $500,000 but, the new interested buyer is only willing to pay $400,000 for the property. You might not be in a situation to pay off the difference amount too. So, convincing your lender to agree to a less amount than you owe is short sales.

Most lenders and banks agree to the terms as this is time-consuming and a lot of hassle. The final result is a win-win situation as the seller is no longer saddled with the debt and the buyer gets the property at a bargain price.

So, if you are selling or buying a property and are considering short sales in real estate, here are the top things you need to know before proceeding with short sales and fixing the deal…

Know the Difference Between Short Sales and Foreclosure

This is something most of you might get confused about. Short sales and foreclosure are entirely different scenarios. In a foreclosure, the role of the homeowner is slightly less than in short sales. People who try to avoid foreclosure by working out a deal with the lender or bank usually go for short sales. And there isn’t any tension about evicting the previous owners in short sales as in foreclosure. Well, things do get messy in foreclosure!

Unlike a foreclosure, short sales in real estate don’t impact your credit much. Still, it’ll damage your credit score but not for as long as the damage done by a foreclosure. You’ll even have the chance to apply for a home loan for two years while in short sales.

Takes A Lot of Time

A short sale doesn’t refer to the time involved as the whole term is somewhat misleading. A short sale can take up to five to nine months to close; sometimes even longer. If it’s the bank you are dealing with, don’t expect the bank to come to you and tell you how much it would accept for the property. So, what you must make sure of is that while negotiating with the interested buyer, you should get the price that has been approved by the lender or the bank for the property.

Finding a suitable buyer to buy a short-sale property or buy a short-sale house can be troublesome without the help of an experienced short-sale negotiator. So, the whole short sale process is time consuming and a bit nettling.

Make Sure You Are Eligible For Short Sales

Saving your property by avoiding foreclosure with short sales seems pretty alluring. But, have you cross-checked your eligibility for proceeding with the short sale services? You must meet all the criteria and might require written proof stating your eligibility from the bank or the mortgage lender. This itself will be time-consuming but have patience!

For being eligible for short sales, you must owe more money to the bank or the lender than the house’s total worth. If you are eligible for any loan modification, then you can rule out all the possibilities of a short sale approval. Written proof that states you can no longer afford the monthly payment and any proof of financial hardships, like being laid off or divorced or having excessive medical bills will make you eligible for proceeding with a short sale.

Make sure you pass all these eligibility criteria before even trying for short sales as this is full of hassle and time-consuming.

It’s Time You Consider a Helping Hand

Buying or selling the short-sale property will be a lot more troublesome if you are planning to go ahead alone. You’ll be facing a lot of pressure mentally and emotionally through the whole process. The first thing you need to do is find a trustworthy agent to sort out your problem. A real estate agent who’s experienced in every aspect of real estate can make a huge difference especially if you are selling short-sale property.

The short sale process involves a lot of legal procedures and paper works. It will leave you frustrated in no time. A Short Sale specialist who’s familiar with all these stages will help you push further without any difficulties. Well, the time flies, and you need to act more quickly in finding a buyer, or you can still face foreclosure.

Conclusion

Keeping your patience and confidence is the main key to every successful short sale. The right agent who knows his way around will be a boosting factor when going for short sales in real estate. Also, beware of the cunning smiling-faced agents who disguise and mislead you by offering a helping hand when you are vulnerable.

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