2020 is coming to an end. We’ll admit most of use haven’t been able to make much progress due to the pandemic, but life is all about second chances. 2021 is here and we can already feel the good vibe in the air. But we need to be prepared. Let’s start by learning all there is to know about investing in distressed properties in Houston, Texas.
This piece will be about distressed properties because We Buy Fast Houston Houses has been busy running the numbers, and we can tell the market is about to be flooded with all kinds of properties.
You see, the pandemic didn’t just affect you. Homeowners took a big hit and as a result, most of them fell back on their mortgages. Thanks to the CARES Act, property owners who were caught up in a financial bind are breathing a sigh of relief but we all know that’s a temporary fix. They were only given 180 days and time’s quickly running out.
To be clear, we’re not happy about the current situation. But it is what it is and our job is to let everyone know what’s going on out there.
What are distressed homes?
A distressed house is a property that’s on the brink of foreclosure or one that has already been repossessed. Houston, Texas investors often find such properties appealing due to their low price rates. We do have three types of distressed properties: foreclosures, REOs, and short sales.
If you think foreclosure is imminent, and you don’t want to be haunted by the ramifications, you can always work something out with your lender. Ask them to give you consent to sell my home fast below market value and use those earnings to pay back what’s left on the debt. If they give you the green light, you can go ahead with the sale and avoid foreclosure altogether. That’s what we call a short sale.
Foreclosures are properties that have gone through the process and are now in the hands of the lender. The title has already changed hands and it’s no longer in the name of the borrower. You should avoid foreclosure at all cost because it will seriously dent you credit score, make it impossible for you to secure a second mortgage, rent a property, or even get a job. It’s actually that bad.
REOs are properties that belong to the lender and have failed to sell at an auction or through any other means. And avoid the expenses of repairs, lenders normally sell them cheap.
What are the risks involved?
Of course, investing in distressed properties comes with several risks. There’s the risk of finding liens on the property. That’s obviously not good. The maintenance/repair cost might be too high. Another bummer. Or, you could end up paying more than what the property is actually worth.
How do you find distressed properties?
We Buy Fast Houston Houses can help you do that. Just so you know, we’ve always been investing in distressed properties. You can trust us.
Comments