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 Kansas City, Missouri, 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 Kansas City, Missouri.

Three Types of Distressed Properties

1. 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 Missouri has strict laws regarding 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 Kansas City, MO.

2. 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 owner may buy back the house once it has gone through the foreclosure process if the bank is willing to reinstate the loan.

3. 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.

Selling Your House Fast is Easier Than Ever

When you go the traditional route for selling your house, the process can be complicated. You have to meet with a realtor multiple times, list your house on the market through various platforms, and find creative ways to make your house more attractive. Plus, there are no guarantees if or when you’ll find a qualified buyer.

Our process for buying your house is fast and easy:

Talk to a Local House Buyer

Feel free to call one of our local buyers to schedule a quick house visit. We can answer your questions, discuss your options, and do a quick run-through of the property. Don’t worry about making any preparations. We are happy to view your house as-is.

Let Us Make an Offer on Your House

If we like what we see, then we’ll make a fast cash offer on your house without delay. We typically make offers at just under the house’s value. Our offers are fair and consistent with no changes once the proposal is submitted.

Get Cash for Your House

If you accept our offer, then schedule a close date that is convenient for you. We show up and sign the paperwork, pay all the closing costs, and seal the deal. We can pay you cash for your house in as little as seven days from 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 Kansas City, Missouri. 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 Kansas City, you can close and get cash in your hands in as little as 30 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 As-Is Regardless of Your Situation

When life happens, you have to move quickly. You don’t have time to list your house, make renovations, prepare to show it, and go through a lengthy closing process. So, if you are in a situation where you have to sell your Kansas City house fast, let KC Real Estate Buyers take it off your hands.

We help homeowners in all types of situations:

You may believe that your situation prevents you from selling your house. However, we are interested in buying your house regardless of your reason. Let our investors show you how easy it is to sell your house in as little as 30 days with no hassle.

We Buy Houses for Cash in the Following Areas:

At KC Real Estate Buyers, our investors work with house sellers throughout key areas in Missouri and Kansas. Many of our sellers come from the following areas:

We Buy Houses for Cash in the Following Areas:

At KC Real Estate Buyers, our investors work with house sellers throughout key areas in Missouri and Kansas. Many of our sellers come from the following areas:

Sell Your Distressed House Fast for Cash in Kansas City, Missouri

When you sell your house to a local investor, you can avoid foreclosure and the hassle of putting your house on the market. Contact KC Real Estate Buyers today to sell your house quickly. Call us at 816-895-2999 to schedule a walkthrough with a local house buyer. We buy houses in any condition.