In the wake of the pandemic, unexpected side effects are evident. Circumstances have left people wondering how they can meet their financial needs.
There are many reasons a person may want to sell their home fast. Among current economic challenges, home foreclosures are increasing across the country.
Learning about foreclosing is a helpful way to reduce the stress of it all. This includes understanding the different types of foreclosure and how to avoid scams.
Homeowners are feeling the pinch of financial strain. They are looking for ways to sell their homes fast. Fast Home Buyers is here to help.
What is Home Foreclosure?
When a person commits to purchasing a house, they take out loans. They will often borrow money from a financial institution to cover the cost. They usually do so with the intent of making every payment.
If someone is unable to pay, the lender can decide to reclaim the title to the house. This is their legal right and it’s known as a foreclosure.
When homeowners face foreclosure, it can create challenges. In the immediate, this can cause a person to face eviction. They will also have a loss of the property as well as any money they have paid toward the house.
Not only are there immediate consequences resulting from foreclosure, but there can be long-term results. Foreclosures have a negative impact on a person’s overall credit score.
Future lending opportunities may be more difficult to accomplish. This is because most financial institutions see foreclosures as a breach of contract.
Avoiding having a home foreclosed on is the best way to avoid any potential negative impact.
Reasons People Want to Sell Their Home Fast
In today’s real estate, there are many reasons someone may want to sell their home fast.
- Life Changes: Life happens quickly. Sometimes, some changes come along requiring a fast sale of a current home. Here are a few examples:
- Career Changes: When a job status changes, expenses may need assessing. People who lose their jobs often need to sell their home fast. This can reduce monthly expenditures as well as bring in immediate cash for needs.
- Divorce: Marriages ending in divorce can be a sticky situation. Homeowners needing to liquidate common property are motivated to sell quickly. This avoids further expenses and makes one less stressed when dealing with an ex-spouse.
- Moving: There are a variety of reasons a person may need to move away from their current residence. Perhaps it’s a career move or a need to be closer to a family member. Maybe it’s simply wanting a change in weather. Whatever the reason, moving can motivate homeowners to sell fast.
- The Unexpected: As much as the average person likes to make plans, unexpected things occur more often than they may like. Here are some examples of unexpected reasons a homeowner may want to sell fast:
- Death in the Family: Experiencing a death in the family is a stressful time for everyone. There are costs involved, property to consider, and decisions to make – all on top of grieving the loss. Selling a home fast can help in the process.
- Inherited and Unwanted: On occasion, a death in the family can lead to an inheritance. If someone’s given a home they have no desire to keep, they may investigate ways to sell fast.
- Downsizing: Life can bring positive reasons to sell a home fast. Like when children grow up and leave parents with a need to downsize because they have more room than they need.
- Financial: It is an unfortunate truth that financial upheaval can cause an urgent need to sell fast. Here are just a few ways that a lack of finances can cause homeowners to want to sell fast:
- Foreclosure: The threat of foreclosure is enough to give nightmares. Being unable to pay on a mortgage can cause a lender to take legal action. This will lead to eviction and loss of home. Avoiding foreclosure is one strong reason someone may want to sell their home fast.
- Unpaid Taxes: Homeowners unable to pay necessary taxes may find themselves in a challenging situation. In this case, selling their home would help avoid any further problems.
- Need for Repairs: Houses inevitably need repairs. Sometimes, there can be catastrophic events requiring more than simple maintenance. When homeowners are unable to pay for the work needed, they may consider selling fast.
Types of Home Foreclosures
There are two types of foreclosures to be aware of as a homeowner.
- Judicial: In judicial foreclosures, the financial institution holding the mortgage must go to court. There, they will prove the right to foreclose by showing they own the deed. They will then get a court order permitting them to repossess the home. This is typically the more costly and drawn-out of the two types.
- Non-judicial: If possible, a mortgagee might prefer a non-judicial form of foreclosure. With a lower cost and faster turnaround time, this type does not require court orders. This foreclosure only applies to power-of-sale clauses that appear in deeds of trust.
How to Avoid Foreclosure Scams
When people are in desperate situations, they may make rushed decisions.
In their haste, they may think they are making wise choices. Instead, they fall prey to foreclosure scams.
The best way to keep from being victimized is to stay aware of the best practices for avoiding scams. Here are some of the red flags to watch for:
- “Too Good to Be True” Ads: If an advertisement sounds like it is promising things that are too good to be true, this has the potential to be a scam. Over-the-top claims of help may indicate that someone is trying to steal rather than help. Phrases such as ‘100% Guarantee” or “Keep Your Home” are definite red flags.
- Claiming to be a Lawyer: People who feel as though they are in danger of being taken to court might respond rashly. This can lead to an unfortunate foreclosure scam.
- Threatening Language: Scammers can often use very threatening language. This is meant as intimidation. Their hope is to rush a person into agreeing to what they’re saying without them truly knowing the details.
- Asking for Money: Homeowners receiving requests for immediate payment from unknown sources should use caution. It is best to only send money to known recipients.
- Schemes that Promise Rent-to-Buy: If a scammer asks for a home title to be turned over with nothing in return but promises, use caution.
Fast Home Buyers Can Help – Contact Us Today!
Are you facing foreclosure on your home? Do you need to sell your house fast?
Fast Home Buyers can help.
We purchase houses in foreclosure in Utah and Florida. Our goal is to work with homeowners looking for a solution to their financial situation.
We strive to provide quick, fair purchases for cash. The condition of the house does not affect the outcome of our offer.
Contact us today so we can get this process started – fast!