We would like to make an offer on your home.
As a real estate broker, I am interested in buying your home for my own investment. We make offers on many homes, and purchase 2 to 3 houses per month in good to excellent condition. We usually buy homes “subject to the existing mortgage” or “cash” depending on the circumstance.
“Subject to the existing mortgage” purchase simply means we take over your monthly mortgage payments. With this type of purchase there aren’t any hidden costs, selling commissions or closing fees when you sell the property. It is a quick sale and we can close the purchase in a matter of days once we agree on the sale and the agreements are signed.
“Cash Sale” clearly means money in your hands at closing. We agree on a purchase price, closing date, sign agreements, and we’re done. The cash purchase is usually offered when the home is valued under $65,000. This too, is a very quick-to-close purchase.
Sellers that are interested and comfortable with selling their home(s) to me usually have tried “for sale by owner”, Craigslist or a multiple listing service that have not put a “sold sign” on your property. When we first meet you are most likely discouraged, frustrated, and feel tied down to a home that you feel will never sell. In addition, your cash may be getting tight, there’s little equity in your home and you’re uncertain of the possibility of ever moving again. If you feel you are alone and isolated, let me assure you, we have plenty of friends for you to meet in similar situations.
If you feel you are in a dead end situation with tight cash and little equity in your home, this is what may have happened with your home. First of all, please realize this has nothing to do with you personally and everything to do with our present economy. Let’s use this as an example. You bought your home 4-6 years ago, maybe longer, when the housing market was strong and interest rates manageable. Then “oops” 3 years ago the housing market started to fall and has continued to decline with values of homes at an all time low. You may even have an adjustable interest rate, which makes matters worse with your monthly payments increasing each year you live in your home. So, if you see yourself in this example or some part of it, no wonder you don’t have any extra cash to throw around on marketing your home.
HERE IS OUR OFFER TO YOU
We will buy your property by taking over the monthly mortgage payments, a purchase called, SUBJECT TO THE EXISTING MORTGAGE.” In addition, we pay any incurring costs; such as neighborhood association fees, and maintenance on the property until the mortgage is paid off or we sell the home. Since there is no equity or cash value in your home, you do not receive cash money at closing, but you no longer have the responsibility of monthly mortgage payments, and the other costs of owning a home.
Once we agree on the purchase and the agreements are signed. You no longer have the responsibility of the monthly mortgage payment or costs of owning the home. You have just sold your home, SUBJECT TO THE EXISTING MORTGAGE.” All of the costs of the home are now my responsibility. This is a creative method for selling a home in a market where it is tough for buyers to be approved for FHA and conventional mortgages. It is both legal and ethical. However, if you feel unsure of the process, you’re welcome to consult an attorney for assurance that you aren’t getting into a risky transaction.
WHY WE BUY PROPERTIES "SUBJECT-TO THE EXISTING MORTGAGE"
The reason we buy properties “subject to the existing mortgage” is of course to make money. So, how can we do this if you weren’t able to sell your home? Our plan is to hold onto the property until the housing market makes a rebound. At this time there is only speculation when that will happen, but we’re financially sound and are prepared to make your monthly mortgage payments until we see that day. We have also, made a written commitment to you to keep the property in good to excellent condition with a qualified tenant or tenant-buyer occupying the home.
IS “SUBJECT TO THE EXISTING MORTGAGE” SALE A WISE CHOICE FOR YOU?
One of the advantages of the sale for you is it can happen on your timetable. If you need to stop making monthly mortgage payments quickly, the sale is fast, and can happen within a matter of days. However, if you’re interested in waiting and want to give your home the “last ditch” effort we’ll support that too.
The process of the sale is simple. Once we sign the agreements, the deed is transferred to our company, you won’t have to make another mortgage payment. As we committed to you in the signed agreements we will always make the full payment (principle, interest, taxes, and insurance) on time, as you originally agreed with your lender. The mortgage does stay in your name even though we’ll be making the monthly payments. This can be a concern, but disappears once a couple of mortgage payments are made on time. Like many of our past sellers you too, will develop trust and confidence in our commitments to you.
HOMES WE'RE INTERESTED IN PURCHASING:
- The value of the home is between $40,000-$155,000.
- The mortgage amount for all loans, (1st & 2nd mortgages) secured against the property must be under market value.
- The mortgage rate must be below 7%.
- The house must be in "rentable" condition. If you aren't sure what this means, just let us know what the major defects are and we will let you know if we think they’re an issue.
- All monthly mortgage payments must be current.
If you have specific questions or need additional information, please don’t hesitate to give us a call or email.
If you would be interested in selling me your house, please click next.