A distressed property is a house, commercial property, or piece of land that is currently going through a foreclosure and is being sold by the bank. If you are no longer able to make mortgage payments or keep up with the property taxes, the house becomes a distressed property. Once the bank takes over the property, they may try to sell it at auction or as a short sale.
A piece of property can also become distressed if it is either abused or neglected. For instance, if a homeowner fails to make any maintenance or repairs on the home over a five to ten-year period, the bank may take over the house to protect their investment. Below, we cover details regarding a distressed property and how to sell your distressed property fast in Tacoma, Washington.
There are three ways that a house can become a distressed property:
REO stands for real estate owned property. Once the bank takes over the house, it assumes ownership of the property and tries to sell it to recover the loan. The bank may decide to sell the house on its own or hire a real estate agent, depending on whether the house sells at auction.
Banks typically do not like to have too many foreclosures on their books, so they will sell the house as quickly as possible. They may use a loan officer or REO specialist to list the house on their website and find a buyer. However, the house may gain more exposure if the bank goes through a real estate agent.
If you are unable to make your payments, you or the bank may opt for a short sale. In a short sale, a third-party may buy the house at a reduced price so that you can get out of the mortgage and the bank and recover part or all of their loan. Since the house is often sold at a lower price, it is likely that you will still owe on the remainder of the loan after closing.
You may believe that you can walk away from a short sale with no consequences. However, this is often not the case. A short sale can lower your credit score by 100 to 150 points. This can make it more difficult to get a loan on your next house purchase. You may also be liable to the bank for picking up the remainder of the debt after the house sells.
Perhaps the most common type of distressed property is a foreclosure. This is because a foreclosure can occur alongside a short sale or as a part of a real estate owned property. A foreclosure happens when you stop paying your mortgage, and the bank has to repossess your property.
The state of Washington has strict laws regarding how banks may proceed with foreclosures. For instance, the lender must contact you in advance and give you plenty of time to make up the payments. They must also provide options for helping you repay or restructure the loan. Washington laws also provide a redemption period for you to reclaim the house during foreclosure.
If you are facing a foreclosure in Washington, you will likely go through the process without going to court. Both federal and state laws grant you certain protections before and during foreclosure such as:
Although Washington law works to your favor in most instances, there is one law that works toward the lender’s favor. There is no post-sale redemption period. Once the bank forecloses on your house, it does not have to give you a grace period to buy the house back. So, if the bank is about to foreclose on your house, then talk to our local house buyers at Tacoma Cash Offer. Our company purchases property as-is so that you can avoid foreclosure.
Tacoma Cash Offer takes the burden out of selling your house the traditional way. If you want to avoid needless repairs, listing & staging costs, and closing costs, then follow our three-step process for a fast cash offer.
We are local investors that live in the Tacoma, Washington area. Simply call us, and we can schedule a quick visit to your property. Tell us the details of your property and let us assess your house.
If we decide to buy your property, we’ll make a cash offer. Although we do not pay 100 percent of the market value of your home or your asking price, we will make you a fair offer. Plus, you receive cash for your home without all the hassle.
If you accept our offer, then we schedule a closing date. You can have cash in your hands in as little as seven days after closing. Plus, we pay all the closing costs! Selling your house for cash has never been easier.
If you get a call from an out-of-town investor who wants to make an offer on your home without looking at it, then beware. You may accept an offer that is too low. Out-of-town investors don’t know your situation, the local housing market, or the true value of your home. We do!
Tacoma Cash Offer investors are local. We live in Tacoma, Washington, and work with sellers in the surrounding area. We understand the struggles you may go through trying to avoid a foreclosure. Furthermore, we know the market and what your property may be worth. As such, we will give you a fair offer and not lower once we’ve seen your house.
Don’t settle for less than working with local house investors here in the Tacoma, Washington area.
There are endless reasons why you may be trying to sell your house for cash in Bonney Lake, Washington. We buy houses all types of situations, including:
|Inherited Property||Late Mortgage Payments|
|Selling As-Is||Selling Rental Property|
If you are ready to sell your house now before a foreclosure, then contact Tacoma Cash Offer today. We pay cash for houses in Tacoma, Washington. To find out more about our easy process, call us at (253) 300-2897.