When a homeowner has trouble keeping up with their mortgage payments, the lender has the right to take possession of their property in a process called foreclosure. A house or apartment that is at risk of foreclosure is considered distressed real estate. Such properties are often in need of repair. Here in Charlotte, NC, owners who are unable to pay their mortgage can easily and quickly sell their distressed home to get out of debt.
What Is Distressed Real Estate?
A property is distressed when it is either on the brink of foreclosure or the bank already owns it. There are several reasons why this could happen. For instance, if the housing market drops, homeowners are often underwater on their mortgage. This means that they now owe the lender more money than their home is worth, which can cause them financial stress.
Alternatively, a homeowner might have lost their job or faced unexpected expenses, causing them to delay mortgage repayments. If the owner is unable to regain control of their financial situation and the problem persists for many months, the lender will exercise their right to foreclose.
Foreclosure and Distress Sale
If you can no longer repay your mortgage every month, the bank or mortgage lender will seize your property and sell it on to make up for the money you owe them. This process is called foreclosure. You and your family will lose your right to your home, which can be extremely traumatic and damaging.
Fortunately, there is usually another option. Most homes can be sold on to developers or other homeowners before foreclosure happens. That way, you can receive the money you need to repay your mortgage and get out of debt. When you sell your home because you are having trouble paying your mortgage and you need the money as quickly as possible, this is called a distress sale.
What Are Distressed Properties Like?
Although you can find them anywhere, the majority of distressed properties are located in low-income neighborhoods where it is more likely that homeowners experience financial difficulties. Such distressed homes are very popular with real estate developers and investors because they can be purchased cheaply, remodeled, and then sold on for a much higher price.
But often, a home that faces foreclosure is not in the best condition, so it might need repairs. This is because owners who have trouble paying their mortgage usually don't have the money to spend on updating their property on a regular basis. Therefore, such homes need a lot of work before they can be lived in or sold.
What to Do If Your Charlotte, NC Property Is Distressed
When you face foreclosure, one of the easiest ways out of your situation is to sell the home and pay off the mortgage. In some cases, you might be able to pay the entire balance, but if you are underwater on your mortgage, you might still have some debt left. Nevertheless, selling your house or apartment is the first step toward paying the mortgage lender what you owe.
But the process can be extremely difficult, especially as you need to spend money hiring an agent and updating your home so it appeals to buyers. If you're already struggling financially and need your sale to go through quickly, this isn't the best way forward. Instead, you should consider selling your home to your local experts at Better Path Homes, who are happy to buy distressed homes without charging any fees or requiring any renovations.
The Easiest Way to Sell
Working with us could be the easiest and most efficient way for you to sell your distressed home and get out of financial difficulties. The process is very simple, and you can begin by filling out our offer form or getting in touch with us directly. We will then decide whether your home fits our profile and if so, we'll schedule an in-person visit to determine the value of your home.
At the inspection, you can show us the best features of your property, and we will make some notes about what repairs would be necessary. In many cases, we can immediately make you a fair offer. If you agree to this, we then draw up a contract and have it looked over by an attorney, who prepares a secure and quick closing. Although most contracts take 2-3 weeks to be completed, you could sell your home to us within three days if you're in a rush.
When a property is at risk of foreclosure, it is considered distressed real estate. If you're struggling to repay your mortgage and worried about losing your home, selling it and using the proceeds to pay off your mortgage could be the best option. Get in touch with us now at Better Path Homes to find out how much we are willing to pay for your Charlotte, NC property. We will be happy to discuss your situation, visit your house, and make you a fair offer.