Bankruptcy Homes
Fix and Sell in conjunction with Real Estate Brokerage Firm Leerdam Properties and Construction Company LP Design and Renovation is a solution for homes involved in the bankruptcy process.
Property Damage
Bankruptcy and Foreclosed homes are usually sold “as is” and at a discount. If there’s damage to the home or repairs needed, the new owner is responsible for those repairs. While the bankruptcy or foreclosed home is sold at a huge discount, “as-is” condition can be pretty grim. These homes are often poorly maintained. After all, if the owner can’t make the mortgage payments, they are likely falling behind on paying for regular upkeep as well, not to mention major repairs. In addition, some folks who are facing bankruptcy or forced into foreclosure are embittered, and they take out their frustrations on their home before the bank repossesses. This often involves removing appliances and fixtures and sometimes even outright vandalism.
Beware of Hidden Costs
Along with unforeseen repair and renovation work, delinquencies such as back taxes and liens — which bankruptcy and foreclosed properties often have attached to them, either by the Internal Revenue Service (IRS) or state or other creditors — can add further costs to an otherwise desirable house. Whatever is owed, the government must first be paid and settled before the buying process can move forward. Also, a bank will always pay off any liens attached to the property before reselling it to another party. While these hidden costs may not affect the new owner directly, they may very well affect the closing of the home and reduce the proceeds from the final sale.
Slow Process & Risk
Typically, foreclosures will have a number of additional documents that have to be completed to prepare for the closing, which isn’t always so timely. If it’s a short-sale situation, the owner’s lender has to approve the deal, and that can take a while, as mentioned earlier. Serious damage found in the house can result in a lower home appraisal, which may affect the buyer’s ability to secure a loan. Some lenders won’t lend below a certain dollar amount, because the profit potential on a lesser loan isn’t worth the risk.
How Can Fix and Sell Help With a Property Going Through A Bankruptcy?
- Gain Equity. Maximize the potential of your home and sell quicker and for more money.
- No Upfront Costs. We front the cost to renovate your home. Get the maximum value without paying a dime up front.
- No Additional Fee. Leerdam Properties charges the same real estate commission other realtors charge.
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