Quick cash sale questions

When selling your house in a fast cash sale, there are a million or questions running through your mind. Although you may not find all of the answers to your questions – it’s definitely the start.

How quickly can I get paid?

We can close in as little as 2 to 3 days, assuming there are no problems with the title of the property. Any title issues that arise may delay the closing date.

Do all sellers have to agree to the sale?

Yes. All parties that hold an interest in the property must agree to the sale. The only exception is if there is a court order that overrides the will of someone who is against the sale of the property.

Is the price negotiable?

It is. However, there may be other options we will explore in order to give you higher net proceeds. In many cases, we can increase your net proceeds without affecting the sales price of the property.

When do I have to move out?

You can set your move-out/closing date to suit your needs.

Why sell to Sold ASAP®?

At Sold ASAP®, our only goal is to get you to a better place – whether that be a better house, a better place financially, or a better place in life. We want you to be happy before, during, and after selling your house to us, just like all of the sellers who have done business with us.

Owner financing questions

Selling your house with owner financing can be a challenge if you don’t have the right buyer. Luckily we have plenty of experience structuring owner financing deals.

Is my home loan assumable?

It depends on the terms set out by the lender. Some mortgages may be assumed through a process laid out by the lender. The person assuming the loan would have to go complete this process successfully in order to assume the loan.

Can I owner-finance my home even if the loan is not assumable?

Yes! There are a wide variety of ways that this can be done. Sold ASAP® is experienced in these types of sales. We’ll explore every possible opportunity to yield you the best outcome.

Questions on lease options

Selling your house with owner financing can be a challenge if you don’t have the right buyer. Luckily we have plenty of experience structuring owner financing deals.

Are lease options legal?

It depends on the state that you live in. Most states allow for some form of lease option, accompanied by a list of requirements that need to be met. The most important factor is that you have the attorney/closing company that has experience in closing lease options.

Are there alternatives to lease-options?

There are many alternatives to a lease option. Though each option may not offer the same benefits and flexibility as a lease option; sellers can opt for a traditional sale, a traditional lease, selling with owner financing, selling subject-to the existing loan, and wrapping a seller-financing mortgage around the original mortgage.

Questions on short sales

A short sale can be an excellent way to sell a property that has a loan for more than it is worth. There are many pros to this type of transaction, but there are also many cons you should be aware of.

What's a short sale?

A short-sale happens when a house has a value that is significantly less than the total mortgage against the property. The lender is petitioned to allow the sale of the house for the actual value of the home, forgiving the remainder of the loan.

Since a short-sale typically means the lender will be at a loss, a common condition of a short-sale is that the seller will not profit from the sale of the house.

Can I do a short-sale on my own?

No. A short-sale is a very involved process. The lender will typically want to deal with a licensed agent directly who can help provide the necessary paperwork to carry out the short-sale. The good news is that the lender will pay agent commissions from the proceeds of the short-sale.

What does it cost to do a short-sale?

A reputable company will not charge you any fees to carry out the short-sale. Even in the event that the lender denies the short-sale, you shouldn’t incur fees of any sort. Beware if anyone is trying to charge you a fee to do a short-sale, more than likely it’s a scam.

Can a relative buy my house through a short-sale?

This question is very common. Can a friend or relative buy the house so that you can remain living in the property? The short answer is no.

When a short-sale takes place, all parties involved will be required to sign an Arm’s Length Affidavit. This is a document where each party to the transactions must make a sworn statement that there is no relationship to the seller or one another. In addition to this, the terms of the short-sale do not allow the seller to remain in the property for any reason. The buyer cannot allow the seller any form of tenancy in the property.

Will the short-sale affect my credit?

It might. It depends on how the lender treats the short sale. If the seller writes off the forgiven balance, it may show up as a written off debt. The lender may also opt to file the account as “Settled in Full,” which states that the amount wasn’t Paid in Full, but the amount paid settled the debt. Regardless of how this is reported to the credit agencies, it will be up to each agency as to how it will affect your credit score.

A short-sale is much more preferable than having a foreclosure on a credit report. Though either of these may affect your ability to take out another mortgage in the future.

Questions about forbearance

Forbearance can be a temporary solution for those that are in a temporary bind; it’s a tedious process, but can be very well worth the headache.

Is it easy to get a forbearance?

It depends. If you can prove that the hardship will be short-lived, you may be able to have the lender approve the forbearance. The challenge for you will be proving that the hardship has a legitimate reason that made it take place in the first place and that this reason has been resolved. If your hardship is less than 30 days, you have better odds of having a forbearance approved.

What types of forbearance plans are available?

The most common solution that is offered will be taking a missed payment, dividing it equally and adding it to the next three monthly mortgage payments. Some lenders may allow the missed payments to be spread over more time, but this case is rare.

Other forms of forbearance that are not very common, are:

  • Adding the missed payment to the principal and extending the loan’s maturity date.
  • Differing the missed payment to a later date while making the subsequent payments on time
Must I be late on my payment before I can apply for a forbearance?

The earlier you communicate with the lender that you will be having a hardship, the better the odds you have at getting some type of forbearance plan. Once the mortgage is flagged as late, the lender will typically begin trying to contact you in order to collect payment and prevent the account from going too far overdue.

Questions about deed-in-lieu of foreclosure

A deed-in-lieu of foreclosure may be an alternative you may consider when you have gotten behind on your payments. In a deed-in-lieu, the seller offers the deed to the house to the lender in exchange for not being foreclosed on.

Is a deed-in-lieu of foreclosure better?

Yes and no. On the one hand, it shows you are being proactive and helping the lender in saving thousands of dollars that it would cost in order foreclose on you. On the other hand, you’ve broken your end of the deal – you’ve given up on paying your mortgage. If you are looking to buy a new property in the future, lenders may be cautious in approving a mortgage for you.

Will a deed-in-lieu affect my credit?

It depends on how the lender reports it to the credit bureau. Since accepting a deed instead of receiving mortgage payments puts them at a loss, some may write off the loan. The write off can, in turn, affect your credit score.

Is vacating the property and calling the bank enough?

No. If you walk away from the house, you will own it until the foreclosure date. A deed-in-lieu of foreclosure requires an application and lender approval. If you walkaway from the property, you are still liable for late, attorney, foreclosure fees, etc.

Questions about auctions

Though auctioning a property is an option, it’s not an option that should be used for just any property.

How does an auction work?

In order to auction a house, the first thing that has to be done is to market the auction with people who have the ability and desire to purchase the property. It’s common to allow the qualified buyers to walk the property on the day of the auction prior to beginning.

In order to prevent any type of loss, it’s common to begin the auction with a bid that will cover the necessary expenses associated with the property. This includes the auctioneer’s fee, which is usually a percentage of the property.

Depending on the auctioneer, the buyer may be required to show up with some form of certified payment. Ideally, the certified payment should be enough to cover the winning bid, but the auctioneer may make arrangements to accept a balance if the certified payment does not suffice the winning bid.

What properties should be auctioned?

Properties that have no debts associated with them do best with auctions. Since there will be little risk of the bid being lower than the associated debts, in which case the auction wouldn’t make sense.

Properties that are in some way unique and have had problems moving in the open market should also be considered. Average properties should be sold traditionally as they do better that way.

Questions about equity partnerships

Equity partnerships may work if you have a property with a large amount of equity, have a property that needs a lot of work, and would like to be part of the remodeling process.

What is an equity partnership?

In an equity partnership, instead of selling the property to us, we partner with you. After giving us equitable title to the property, we make the financial investment to remodel it in order to get top dollar for it. Once we sell the property, the profits are split with you.

This option is best for people who would make a bigger profit through an equity partnership than through selling outright. It’s not the best option for everyone.

Can we do an equity partnership if I am behind on my payments?

It is possible. If you have a large amount of equity, we may be able to bring the mortgage current and do an equity partnership. Any arrears and associated fees would be charged back to any profits you would net.

Can we do an equity partnership if my mortgage is upside down?

No. If you are underwater on your mortgage, it would be best to explore other options like a short-sale.

Questions about wrap-around mortgages

In a nutshell, selling a home with a wrap-around mortgage (a “wrap”) is when you create a new mortgage around an existing one. If the wrapped mortgage defaults, it can be foreclosed on. The original mortgage would be unaffected if the terms of the mortgage continue to be met.

What homes can be sold with a wrap around mortgage?

Just about any home can be sold with a wrap-around mortgage.

What is the due on sale clause?

Most mortgages have a “due on sale” clause. This clause gives the lender the ability to accelerate, or call the loan due in full if the property’s title passes to another person.

How do you deal with the due on sale clause?

We give the lender notice of the sale.

How long is the wrap around mortgage?

It can be for any length of time. Our intent is to pay off the property within 2 to 10 years. It simply depends on the individual situation.

Can the lender call the loan due?

They can call the loan due, yes. Will they? That’s another question. Most lenders prefer that an asset is performing as it was meant, so as long as the mortgage is paid on time, most lenders will not accelerate the loan.

Questions about subject-to sales

A subject-to sale can be a super quick way to sell a property. The property is deeded over to the buyer, subject-to the existing liens; this means the buyer will, in essence, take over the payments going forward.

If I'm behind on my payments, can I sell my house subject-to?

You can sell your house subject to even if you are behind on your payments. The amount of the arrears may affect whether or not this type of transaction is best suited for your property.

If my mortgage is upside down, is subjet-to still possible?

It is! An underwater mortgage will not affect whether the house is sold subject to the liens.

Questions about house swapping

Maybe what makes the most sense is to swap your house for another one. This can be to downgrade, upgrade, eliminate a mortgage payment, etc.

Can I swap my house for any other?

Just about. There are no restrictions on the type of house you can swap for. If your intent is to eliminate your existing mortgage, the new house must be priced below the net proceeds you would receive from the sale of your current home.

If you decide to choose a home that costs more than the net proceeds,  you will need to take out a mortgage against the new house.

What will happen to my existing loan?

Your existing loan will be paid off.

Questions about listing your home

If none of the options we have presented work for you, you may opt to list your house. Though we strive to put the most money in your pocket, we can list your house as an alternative.

What's the fee to list my property?

We charge 5% of the gross sales price. This is less than what traditional brokers will charge you.

What type of service can I expect?

You can expect full-service agency representation.