What is a Distressed Property?

What is a Distressed Property?

A distressed property is a piece of property that is under foreclosure or is currently being sold by the lender. A property becomes distressed when a homeowner is no longer keeping up with mortgage payments or taxes on the property. As a result, the lender may take over the property and attempt to sell it at or below market value.

Not every distressed property in Wichita, Kansas, has been repossessed by the bank as a result of non-payment. If the property owner is abusing the house or has committed mortgage fraud, the lender may take action against the homeowner to protect their investment. Below, we take a closer look at what distressed property is and how to sell your distressed property fast in Wichita, Kansas.

Three Types of Distressed Properties

Foreclosure or Trustee Sale

In simple terms, a foreclosure happens when you fail to make your mortgage payments. In legal terms, you, the owner, forfeit all ownership rights to the property. If you can’t pay any outstanding debt or catch up on your mortgage payments, the bank repossesses the house.

The state of Kansas has strict laws regarding the foreclosure. The bank is required to provide notices and ongoing communication, options for avoiding foreclosure, and a redemption period of three to twelve months. During the redemption period, you can attempt to reclaim your house or try to sell your house fast to a local house buyer in Wichita, KS.

Real Estate Owned (REO)

REO stands for Real Estate Owned property. If you default on a mortgage, the bank may go into a pre-foreclosure period that involves either a public auction or a real estate short sale. If the bank cannot sell the property, it may take ownership of the property.

The bank may list the property to an online portfolio and attempt to sell it without the assistance of any real estate agent. A loan officer or REO specialist may publicize the listings or notify buyers that the house is for sale. The previous may buy back the house once it has gone through the foreclosure process if the bank is willing to reinstate the loan.

Short Sale

A short sale occurs when you or bank attempts to sell your house fast for less than the amount on the mortgage. The buyer is typically a third-party, and all proceeds from the sale go back to the bank. As a homeowner, you may feel that a short sale can help you walk away from the house without incurring any penalties.

However, a short sale can drastically reduce your credit score by as much as 100 to 150 points. A drop that drastic can make it difficult to borrow money in the future. You may have to wait two to three years before you can re-enter the real estate market and buy a house again.

Sell Your Distressed House Fast Using Our Step-By-Step Process

Step 1: Contact Us: (316) 202-4249

Call us today and tell us about your property. We’ll schedule a quick walkthrough of your house. There is no need to renovate or prepare your house.

Step 2: Get a Cash Offer

If we are interested in buying your property, we’ll make a fair, no-obligation cash offer. We make most offers within 24 to 48 hours.

Step 3: We Pay Cash for Your House

If you accept our offer, then you schedule a closing date that is convenient for you. We pay all closing costs and put cash in your hands in as little as seven days after closing.

Why Selling a Distressed House for Cash is a Good Idea?

Although you could put your house on the market, there are several reasons why choosing to sell your distressed house for cash right now is a smarter option:

You Don’t Have Time to Go Through a Realtor

On average, it takes 90 days to sell a house in Wichita, Kansas. That’s another three months to deal with the mortgage company. Do you have that kind of time to get out from underneath your mortgage? When you work with a local house investor in Wichita, you can close and get cash in your hands in as little as 7 days.

You Can Avoid House Maintenance and Repair Costs

If you can’t keep up with repairs, then there is no point in trying to maintain your house. A local buyer can make a cash offer and purchase your house as-is with no need for repairs. You can save thousands of dollars on maintenance costs and walk away from the property free and clear. We buy houses as-is.

We Assume Responsibility for the Property

Once a house goes to foreclosure, the lender will try to sell the house to cover the remainder of the balance on loan. If there is any balance left over, the lender may require you to pay it. When you sell your house for cash, the investor assumes responsibility for the property.

We Buy Houses in Wichita Regardless of Your Situation

You may feel that your current situation is hindering you from selling your property. This may be true when you attempt to put your house on the market and sell it the traditional way. However, when you sell your house for cash, there are no conditions. We can buy your house regardless of your situation.

We Buy Houses for Cash in the Following Areas:

At Blue Sky Properties, our investors work with house sellers throughout key areas in Kansas. Many of our sellers come from the following areas:

Sell Your Distressed House Fast for Cash in Wichita, Kansas

When you sell your house to a local investor, you can avoid foreclosure and the hassle of putting your house on the market. Contact Blue Sky Properties today to sell your house quickly. Call us at (316) 202-4249 to schedule a walkthrough with a local house buyer. We buy houses in any condition.