How to sell a vacant house for top dollar
Do you have an unwanted property sitting vacant, “deteriorating” away?
Maybe windows have been smashed, the interior trashed, and code enforcement notices are piling up?
In either case, I want to show you how to sell a vacant property quickly and hassle-free -- while still getting the most dollar for its value.
First off, let’s talk about why it’s difficult to sell a vacant house…
Then we’ll transition into some serious liability issues.
Why you can’t sell a vacant house…
If you’ve only been vacant for a couple of months… then you’ll have no issues selling it.
However, the problem exists when you have missing/broken items (even small) where no bank will loan on the house. And if a bank doesn’t loan a property, no traditional buyer can purchase it.
Here’s a list of “property criteria” that a bank needs to see before lending on it:
No termites or wood-destroying insects
No damage to the roof
No damage to the exterior (cracks in walls, beams showing, compromised wall, etc)
No foundation damage
No loose writing
No exposed electrical
All utility functioning properly
Must have safe and reasonable access
The heating system must be operating normally and heat the house properly
No chipping or peeling lead-based paint
Adequate access to crawl spaces and ventilation in crawl spaces
Properly functioning water heater
Access to tap water
No mold or any other health concerns (like animal or human feces)
No safety concerns (like having a steep staircase without handrails)
Must be considered “marketable” (Can it sell? Is it pleasing to buyers?)
If any one of these is “broken”, then can’t get a buyer to get a loan on it until it’s fixed.
To figure out beforehand, if you need any crucial items fixed before listing… then, it’s best to get an inspection done (Usually costs anywhere from $250-$500), so you can get a list of things to tackle.
Or you can always call your local cash buyers Mast Property Group LLC, to give you a fair cash offer to buy it off your hands as it sits… we love taking on these projects! Just call us at: 216-290-0680
Liabilities of keeping a vacant house
Let me encourage you to not let your house sit for too long…
You see, right now, in your area and surrounding areas, there are squatters on the lookout for houses like yours. A house they can break into and take shelter in.
Then they move their stuff in… they use your toilet (even if it doesn’t flush)... they leave trash… they start fires to warm up… the rodents then follow…
All these things pile up.
And an overlooked big liability is children getting hurt and their parents suing you because the door was unlocked (I guess the squatters forgot to lock it)
I know this sounds like fear-mongering, but it does happen. You see it from time to time in the local news about kids playing in a vacant house and getting hurt.
Don’t let a vacant house sit for too long. People move in, repairs pile up, and the house deteriorates.
How to value a vacant house
This can be a tough one especially if you’ve got a bit of updates that need to be done, or any bank loan-required items are missing.
In order to get a value of your house, you need to find similar homes like yours in size and condition that have recently sold in the 6 months to 1 year. But the problem is that a lot of vacant homes (that need work) don’t typically sell in the open market. They sell off-market to investors or family members.
Just know, that if your property needs work done, the house will be worth significantly less than the updated retail homes selling on the open market.
NOTE: check out our article on “how to fix a property and what items are work remodeling”
Who you can sell to
If your house won’t be able to sell to a traditional buyer (a family looking for a “move-in ready” home), then your only option is an investor.
They are usually the only ones willing to fix up a house (sometimes you find a family that loves rehab projects and have the type to fix up their primary residence, but they are rare to find).
So with that, you have two choices:
Sell on the open market waiting for an investor to make an offer — (Investors on the open market typically buy at a big discount AND you still have to pay closing costs and agent fees)
Or… Sell it off-market to an investor, without an agent — (there are SOME investors that go directly to the property owner (like us), who’ll make you a fair cash offer with no fees or closing costs attached.
If you’d like to see our cash offer… please don’t hesitate to call us!
Dial 216-290-0680 today for a Commission-free, repair-free, cash offer!
How to sell a house quickly and hassle-free with tenants
You’ve spent years collecting rent, and now you want to sell that property. But there’s a problem!
The tenants are still inside and you don’t know what to do.
The good news is you have choices… the bad news is…. You have many choices, which can make decision-making difficult. So, as property owners ourselves we’ve dealt with these kinds of situations. So we’ve written a guide to help you with that decision.
Everything from getting the highest price, to what you need to do today to sell.
Let’s get started…
As a landlord, you have 3 choices to get your rental sold:
Vacate tenants, remodel, sell retail (Highest price, most hassle, most costly) -- Selling traditionally in the retail market will give you the highest price. However, it comes with a few requirements.
For one, families buying the property to live in it will expect a clean and repair-free house; Very few want a fixer-upper, and very few (if any) want to deal with tenants. To get the highest price for your property you’ll need:
- No tenants when you list
- Clean and free of clutter
- Somewhat updated (see this article on “How to repair a property to sell”)
- Patience to wait 30 days for a buyer to come.
*Extra costs: evicting a tenant can be costly in time, money, and patience. If an official eviction is the only way to vacate the property, that can be costly in legal fees and not worth the time.Vacate tenants, sell as-is to an investor (Some Hassle, lower price than retail) -- Typically, in real estate, there are a few “price tags” for your home. You have the “as-it-sits price” which is what someone will take for your house with tenants and in the shape, it’s currently in. And there’s the FULL retail price (or “after repair”), which is what is worth when it’s cleaned up, has no tenants, and is completely updated to market standards — see this repair article on what remodel items are worth doing or not.
Sell with tenants, as-is (No hassle, lowest price) -- Some (but not many) will buy the house with the tenants inside. However, this is (typically) the lowest price you can get for the property from most inventors. However, for a small deduction, it frees up a lot of hassle and headaches
However, there are some investors (like us), that see the value in having tenants in the house and pay a fair price regardless of whether or not there are tenants: call us to find out what we can offer on your property: 216-290-0680
To help you make your decision here are a few extra tidbits of info:
A good agent/realtor will give you a few options -- Depending on your situation, they may advise you to just sell to an investor. However, you’ll not only get the lowest price but ALSO pay 7680 in commission (that’s the average commission payout in your area.
If you sell directly to an investor (like us), you’ll pay no commission and no fees.If you have time and patience your best bet is Retail -- if you have nothing but time, consider selling it the traditional way: vacate the property (hopefully they’ll leave with no problem), remodel/update, clean up, and list it with an agent.
This process will most likely take a couple of months or more (depending on how many updates it needs, then you have the average time it takes to sell a home in your area. See this article on how to prepare a house to sell in your area.Know the hidden fees -- Depending on how you sell, you’ll have to pay a huge amount in agent fees and closing costs. So take that into consideration when selling the traditional way.
At Mast Property Group LLC, we PAY for your closing costs, and you’ll pay no agent fees with us.
There’s a huge range of choices to make, but it falls under whether or not your situation allows you to wait, make repairs, and sell retail…. Or just sell to an investor.
To get a fair offer on your property today (with no hidden fees and with or without tenants), give us a call today!
Dial 216-290-0680 for a fair offer today.
What Home Repairs Give You The Most Value…
… and how to repair your house to sell fast!
Want to sell your property for top dollar?
House in shambles but you want to sell?
Well, Mast Property Group LLC is going to give you the low-down on making repairs and remodels to help you sell your property for the highest dollar possible. Because truth be told… there are some “remodel investments” that just don’t give any money back. Many homeowners think that any remodel update increases the value of your home… not true. And after years of experimenting and remodeling ourselves, we’ve written this guide to help you make the right decision in the realm of “remodeling and repairs”.
Here we’ll cover:
Do you even need to remodel?
What remodel items give you $$$ back
How and where to start -- and mistakes that can cost you $$$
How to sell without ever swinging a hammer, while still getting top dollar
So, let’s get started…
Do you even need to remodel?
There are times and places when you just don’t even need to remodel (or do much besides paint).
And it narrows down to 2 factors:
Market cycle
Condition of your house in comparison to the others
There will be “high years” and there will be “low years”. During “high years”, there are TONS of people shopping for homes, and buying everything no matter what they look like. But during “low times” there are very few buyers and they are picky and only choose the “best ones”.
Let’s give some scenarios to help…
Let’s say it’s a “high time” in the economy. And you have a basic tract home in a desirable neighborhood. And people are buying up properties around your town like crazy. And your house is clean, maybe just needs some paint but that’s all. The kitchen and bathrooms are originals from 2000. In that case, you DON’T need to remodel your house. Remodel probably won’t raise the price of your home one bit.
Let’s look at a second scenario:
It’s a stable time in the economy. But your house doesn’t look too good; The kids left big scratches in the paint, they drew on the walls, your kitchen and bathrooms are from 1996 or later, and you’ve got some chipped tile.
You take a look around your neighborhood and the houses that are like yours (in size and model), are recently updated and selling for $300,000 (for example). But the houses that need some work… are selling for $240,00 (if you need help figuring this out, you can call a local agent, OR call us at 216-290-0680).
A basic cosmetic remodel won’t be over $60,000 more like $25,000+ depending on the size and extent of the damage. So putting in some money, time, and elbow grease can give you some money back.
When do you absolutely need a remodel no matter the market?
If you have FUNCTIONAL problems in the house, like:
Odors
Broken floors
Non-working appliances, HVAC, electrical, plumbing, etc.
Foundational issues
Sometimes this could be a house destroyed by tenants (if you have tenants and you’re looking to sell, make sure you check out our article “how to sell fast with tenants”
Sometimes this could be a vacant house that’s been trashed by squatters, or sitting, “rotting” away. If so, check out our article on “How to sell a vacant house for top dollar”
It’s Much harder to sell houses “as-is” with functional problems because the only buyers willing to take those are investors.
What items give you $$$ back
When remodeling, some items are just a pure waste of time and money; things that do not raise the value of your property one bit.
But there are others that you should be paying attention to, and can potentially lift the value and desirability of your home.
Let’s start with a list in order of importance:
Broken “functionality” items (Lift value and decrease time spent on the market — If you have broken: HVAC, electrical/plumbing problems, foundational issues, Leaky roof, broken fence/gate, broken doors/windows, broken floors (chipped, cracked)… you need to get these items fixed ASAP. Because the only buyers will be investors.
Bathrooms (lift value and decrease time spent on the market) — This should be top on your list. They bring up the resale value and they say you can actually get a 40% return on your investment. The average cost of a DIY bathroom remodel ranges from $2,000-$10,000.
Kitchens (lift value and decrease time spent on the market) — This is the first thing buyers see, and it’s the one thing that buyers will pay a premium for if the kitchen is upgraded. Some things to upgrade are luxury appliances, quartz countertops, backsplash, new floor tile if it’s chipped (or just deeply cleaned if it’s really grimy), and new cabinets if they’re broken or extremely outdated (or just fresh paint if they’re decent)… The average cost of a DIY full kitchen remodel ranges from $5,000 - $50,000
Exterior (Decrease time spent on the market but won’t do too much to raise the value) — Curbside appeal is what attracts good buyers. When buyers are scrolling through listings, they make their decision on whether or not the front looks good. Here are some items that can give your curbside look a “facelift”: fresh paint, landscape (trimming bushes, getting rid of dead plants and leaves, getting the grass green), new garage door (if it’s outdated (the old “death trap” doors buyers steer away from), or just give a nice cleaning and replace windows if its a newer door), Sidings (if they can’t be painted over)... the average total DIY cost of all these can range from $3,000-$8,000 for a 1,500 square foot house.
Interior (Decrease time spent on the market and can potentially give you some lift in value) — This may or may not be needed (the first three tasks are TOP priority). But when a buyer walks through your house, what will they see? Clutter? Bubbled vinyl or laminate flooring? Old ugly paint? Old furniture? If you said yes to any of those, you might need an update. And the total DIY cost of all these can range from $4,000 (for only paint) to $12,000 for a 1,500 sq ft house.
Not a long list…
But it gives you an idea of where to start. Alright on to the next items…
How and where to start
Now that you have an idea of what you need to repair…
Let's figure out if you’re going to DIY or hire someone. Of course, this is 100% up to you and your abilities, time, and resources. If you’re skilled, DIY can save you a LOAD of money. The quotes I gave you above are rough estimates with the lower ranges being DIY prices; meaning the lower numbers are material only.
But if you hire a contractor (and we’ll talk about how to hire one in a bit), you can double the amount you spend on the material.
How to hire a contractor
There are 2 types: subcontractors and general contractors.
A subcontractor is someone like a painter, an electrician, or a plumber; someone you hire to do one job, like fixing all the GFCI outlets in your house, for example.
A general contractor is someone who does ALL the jobs needed for your house. So if you have a “laundry” list of big repairs items like Bathrooms, floors, and paint… Then the general contractor will handle it all for you. He/She usually knows subcontractors. He’ll give you one big quote to complete the entire remodeling job.
Which to choose?
A general contractor will be more expensive…. But it’s very “hands-off”. So our recommendation is if it’s a very lengthy “to-do” list with complicated jobs, and you lack time, then it’s best to get a general contractor. If it’s only 1-3 minor jobs, then you can get away with finding your own subcontractors.
2 Words of warning:
DO hire a licensed contractor… Someone who is licensed also has insurance for their business. Someone who’s NOT licensed and gets hurt while working on your property can sue you.
DO tell your insurance about your remodel BEFORE you start… If anything happens (like a fire for example) to your home while under construction, your insurance WILL NOT cover the damage because you didn’t alert them about the work you were doing to the house. Some may raise the insurance just a tiny bit only WHILE you’re working on the house… but it’s worth the small cost. Because you can’t predict accidents. And if it does happen, you won’t have the damage paid for by your insurance.
A faster way to sell without swinging a hammer while still getting top dollar?
And if you want to skip all that time and money on remodeling but STILL get a top-of-market offer that’s fair based on the current value of your house…
You can always give us a call: 216-290-0680
We give fair offers based on current values.
Dial us or text me at: 216-290-0680
And we’ll be happy to assist you with your situation!
How to rent out an inherited property
Alright so you’re excited about being a new landlord.
You just inherited property… or you’re about while your property is in Probate (see our homeowners guide on probate in North East Ohio here)...
We’re going to dive into tips, benefits and warnings of being a new landlord in North East Ohio…
Why Rent a property?
If the property in question is still in Probate and you have the cash to pay for the process (if you don’t you might have to consider selling to pay for it), then renting is a very viable option if you’re up to it.
Mainly for three reasons:
1. A second stream of income
2. Possible appreciation and wealth
3. Pass down an asset
Let’s dive into each one of these and see if it’s worth it for you
Is there any Cash Flow from renting out?
A common mistake people make is thinking:
Cash flow = Rent income - Mortgage
This is far from the truth.
The real formula for cash flow is:
Cash Flow =
Rent Income - Mortgage - Maintenance - Capital expenditure - Property management
That’s the true formula for cash flow.
And MANY new landlords make this mistake of buying property and then end up being completely BROKE after something like a water heater breaks.
Then the property starts to deteriorate.
The costs start piling up.
Tenants move out because nothing is being fixed.
This is 90% of most landlord situations.
All because they were mistaken in believing that they actually have cash flow…
When they don’t.
So rule #1:
Make sure there is ENOUGH cash flow.
Rule #2…
Properly budget for maintenance and expenditures.
What type of property maintenance and expenditures?
There are yearly property maintenance you have to do (we’ll list them below), and there are big ticket items you must save for.
Here’s a list of yearly property maintenance that cost you $$ out of pocket:
1. Lighting: You’ll get lots of calls from tenants who can’t replace a light bulb (face in palm)…
2. Gutter Cleaning: Ensure gutters and downspouts are clear of debris to prevent water damage and foundation problems.
3. Roof Inspection: Check for loose or missing shingles, leaks, or any other damage that may lead to bigger problems down the line.
4. Landscaping: Regular mowing, pruning of shrubs, tree trimming, and refreshing mulch. Additionally, consider seasonal tasks like leaf removal in the fall.
5. Pest Control: Schedule periodic inspections for termites, rodents, and other pests. Even if no problems are visible, preventative treatments can be worthwhile.
6. HVAC Maintenance: Change air filters regularly and have the system serviced at least once a year to ensure efficiency and longevity.
7. Plumbing: Often you get plumbing issues like leaky faucets that have to be corrected. Look for any slow drains, leaky faucets, or toilets that run constantly. Addressing these early can prevent more expensive repairs later.
8.. Safety Checks:* Regularly test smoke detectors and carbon monoxide detectors, replacing batteries as needed. Ensure fire extinguishers are in working condition
9. Appliance Maintenance: Often, washers, dryers, water heaters, etc break down. Clean and service appliances like the refrigerator, dishwasher, oven, and washing machines to extend their lifespan.
Budgeting for these tasks ensures you can address issues before they escalate into more significant problems, saving money in the long run. Plus, a well-maintained property is more attractive to current and potential tenants.
List of capital expenditures:
Capital expenditures (CapEx) are the large, infrequent expenses that landlords should plan for as they relate to the overall improvement or maintenance of the property. These are not your typical monthly or annual operational costs but are essential for keeping the property in its best condition over the long term.
These things below are unavoidable.
They WILL happen sooner or later and they are PRICEY (A roof is at least $10,000).
Here's a list of capital expenditures landlords should budget for:
1. Roof Replacement: Roofs don't last forever. Depending on the material used, you might need to replace it every 20-30 years, sometimes sooner if there's significant damage.
2. Window Replacement: Older windows might need replacing to improve energy efficiency and aesthetics.
3. Exterior Siding or Painting: Whether it's replacing siding or repainting the exterior, it's an investment that can both protect and rejuvenate the appearance of a property.
4. HVAC Systems: Furnaces, air conditioning units, and other HVAC components have a finite lifespan, typically around 10-15 years.
5. Water Heater Replacement: Most water heaters last between 8-12 years, so you'll need to replace them occasionally.
6. Plumbing and Electrical Systems: Overhauls or major updates might be needed, especially in older properties that don't meet current codes or standards.
7. Flooring Replacement: Whether it's the wear and tear on carpets or damage to hardwood/tile, at some point, you might need a full flooring update.
8. Kitchen Renovations: This could include new countertops, cabinets, sinks, or a complete redesign to modernize the space.
9. Bathroom Renovations: Updating fixtures, tiles, showers, and tubs can enhance property value and appeal.
10. Appliance Replacement: Refrigerators, stoves, dishwashers, and other major appliances will eventually need to be replaced.
11. Foundation Repairs: Issues like settling or cracking can sometimes require significant repairs to ensure the structural integrity of the property.
13. Fencing: If the property has fencing, it might need repairs or total replacement after many years of weathering.
16. **Septic System or Sewer Line Replacement:** If the property isn't connected to a public sewer, septic systems might need major repairs or replacements. Similarly, sewer lines can become damaged or clogged.
When planning for capital expenditures, it's crucial for landlords to set aside funds regularly. This proactive approach ensures that they're financially prepared for these inevitable expenses, helping maintain the property's value and the comfort of its tenants.
Getting good Property Management.
Vacancies will happen (another “budget” you should set aside for -- imagine 2-3 months of having to pay for mortgage out of pocket).
A good property manager (PM) and take the headache off your plate.
The average cost of a PM:
5-10% of rental income
Managing a rental yourself
Because most landlords don’t have enough cash flow to pay for a PM, they’ll result in managing the property themselves.
Unfortunately this is not an ideal route if you want a rental property to be “handoff”.
Many professional investors create their own “property management” companies to manage all their properties. They have the volume of real estate where it makes sense.
Here’s a list of things to consider when managing your own property.
1. Proper Legal Contracts: Essential for protecting both the landlord and tenant. This includes a clear and detailed lease agreement, clauses for renewals, and any other relevant contracts.
2. Property Maintenance Schedule: Regular checks on the property, from annual inspections to seasonal maintenance tasks like gutter cleaning or HVAC servicing.
3. Rental Deposit Clause: Clearly outline the conditions for security deposit collection, holding, deductions, and returns.
4. Cleaning Company: Having a reputable cleaning company on standby for turnovers between tenants or for regular deep cleans can be invaluable.
5. Reliable Network of Contractors: This includes plumbers, electricians, handymen, landscapers, etc., who can attend to issues promptly.
6. Emergency Contact List: A list of essential contacts for emergencies, including local police, fire department, emergency maintenance services, etc.
7. Tenant Screening Process: A comprehensive system to vet potential tenants, including background checks, credit reports, and reference checks.
8. Property Insurance: Ensure that the property has adequate coverage against damage, liability, and potential rental income loss.
9. Knowledge of Local Laws: Familiarize yourself with local landlord-tenant laws, rental regulations, and fair housing acts to avoid potential legal issues.
10. Accounting System: A system (software or manual) to track rental income, expenses, and other financial aspects related to the property.
11. Rent Collection System: Whether it's through online payments, bank transfers, or checks, have a consistent and reliable method for collecting rent.
12. Eviction Procedures: Understand the legal process and requirements for evicting a tenant, should it ever become necessary.
13. Regular Communication: Keeping an open line of communication with tenants helps address concerns early and maintain a positive landlord-tenant relationship.
14. Move-In/Move-Out Checklist: A detailed list for inspections when tenants move in or out, ensuring any damage or changes are noted and addressed.
15. Inventory List: If the property is furnished, maintain a list of items and their conditions.
16. Safety Protocols: Ensure that smoke detectors, carbon monoxide detectors, fire extinguishers, and any security systems are in place and regularly checked.
17. Pest Control: Periodic inspections and treatments to prevent infestations.
18. Cash reserves: A financial cushion for unexpected repairs or vacancies.
19. Marketing Strategy: A plan for advertising the property, conducting showings, and drawing in potential tenants.
20. Tenant Welcome Pack: A package that provides new tenants with essential information about the property, local amenities, emergency contacts, etc.
21. Property Management Software: Useful for streamlining various tasks, from rent collection to maintenance requests.
22. Updates on Market Rates: Regularly check local rental rates to ensure your property remains competitively priced.
All these costs add up
Most professional investors have a rule of thumb to calculate all these costs:
40%-55% of rental income
Over the long run, that’s what it cost to hold a rental, 40% of the rental income.
So if you’re getting $2,000 a month in rental income, deducting $800 and depositing it to a separate bank account is a good idea.
If not… you’ll end up with no cash when you need it.
Do you have the cash flow?
As you can see..
You need to make sure you have the cash flow from the beginning to rent a property.
If a property rents for $2,000…
And the mortgage is $1,500…
According to the typical 40% budget rule of thumb…
You’ll end up with a:
NEGATIVE $300 in cash flow.
Meaning, you’ll have to pay out of pocket, $300 a month to support this property.
This is why most new landlords end up selling a property after 2-3 years.
They’re broke and don’t have the cash for unexpected repairs.
How to find GREAT Tenants
Tenants are providing your cash flow.
So it’s CRUCIAL to have a system of marketing and screening for quality tenants.
(NOTE: Make sure you consult with a real estate attorney to understand the tenants laws)
Location is the number factor -- If your rental is in a neighborhood where the majority of houses have tenants… than it’s most likely going to bring less quality tenants (tenants that don’t care about your property)
Have an iron-clad contract -- and make sure that the tenants read and understand everything. You want to highlight what’s expected of the tenant (and expected and not expected of you)
Market your property in multiple ways -- Don’t just put up a craigslist ad (that’s probably the wrong location to attract quality tenants). Put up a listing on Zillow and Redfin (and every other “Realtor listing” site). Pay a flat fee to the MLS for a listing. Put up a sign. Have an in your local newspaper. Tell agents and realtors (they do expect a commission for bringing you a tenant).
Take great photos but don’t fool -- Pictures that don’t “speak” the truth about the property will disappoint tenants. There are pictures that say “WOW!!!” but when to visit the property is the exact opposite. Make sure the pictures comunitate the full essence of the property in a truthful way.
Be organized -- Don’t be a hot mess. Keep your documents in one place. Keep track of routine maintenance. Don’t let a property deteriorate. This is crucial for finding a quality tenant: a good, clean, organized landlord.
Want a cash offer instead?
We’ll give you a hassle free offer (even with tenants in the house) this week!
Give us a call/text: 216-290-0680
Selling a property in probate
If you’re fully on board selling a property or your on the fence of whether or not to do it…
… let’s go ahead and unravel this process to make your decision easier.
First off, In our “Probate property guide” found here, you’ll find a homeowner's guide to the probate process in North East Ohio.
And in it we talk about why someone might want to sell the property.
So let’s start with that section
Why sell a property in Probate?
We've all been there: standing at the crossroads, wondering which path to choose. The decision to sell a property in probate, much like any substantial decision in life, brings its own set of unique advantages. Let’s tread slowly through this avenue, exploring the facets that make selling in probate not just an option, but possibly a lifeline in certain situations.
1. Wiping the Debt Slate Clean
When the deceased owner leaves behind debts, it can be a distressing burden for the heirs. Selling a property in probate becomes a silver lining here. By putting the property up for sale, you get an opportunity to settle these outstanding debts. You're not just liquidating assets; you're reclaiming peace of mind.
2. Bypassing the Landlord Hustle
Renting a house can sometimes be a huge headache depending on the area and how far you’re from the property -- see our “renting/landlord guide” here
If your inherited property comes with tenants, you've unwittingly become a landlord. But what if that's not the hat you want to wear? Selling the property can be an elegant exit from the landlord lifestyle. It's a chance to hand over the keys to someone who's genuinely enthusiastic about playing that role, while you walk away with cash in hand.
3. Covering Probate Costs With Ease
Probate can be long, complex, and yes, costly. Legal fees, court costs, appraisal charges, and the list goes on. Here's the twist: selling the probate property can essentially mean the estate pays for itself.
The funds from the sale can cover the costs tied to the probate process.
It's like a self-fulfilling financial cycle, turning the process from daunting to doable.
Can You Sell During Probate?
Absolutely, you can.
But there's a catch.
In North East Ohio, if you're thinking of selling a home or other property during probate, you'll need a nod from the courts.
It's the executor or administrator's responsibility to take charge of this sale.
Think of it as needing a green light from the legal system to ensure everything's above board.
The easiest way to get court approval…
The easiest way for a judge to say “yes” to you selling is by having these two things in place:
An attorney
An agreement with a buyer
Having these two things in place will make the probate selling process SIMPLE (as long as there aren’t any other complications like disagreements with heirs, discrepancies in the will, etc).
How do you find a buyer that fast?
Listing a house is uncertain…
And the hassles of showing it, dealing with the agent, paying the agent the commission, and cleaning/repairing it .
But if you call us (a professional and trusted homebuyer… we’ll buy it straight from you with no showings, no repairs or cleaning in it…
In fact…
… You can leave all the unwanted things behind!
Just give us a call or text below for a quick offer:
216-290-0680
When You Don't Have Money to Pay for Probate
If you have an attorney (and we can help find you a trusted and experienced probate attorney), and all parties understand that you’re selling the property…
You can go through the process without paying for upfront costs.
Because the costs will be paid for from the proceeds of the sale.
So here’s a breakdown of what that looks like:
1. “Partner” with an Attorney:
We can help facilitate an attorney to guide you through the probate process. This attorney can assist in ensuring that all legal requirements are met, and the property is adequately prepared for sale.
2. Selling the Home:
Once everything is in order, you can then sell the house. The proceeds from the sale can cover the probate costs, ensuring that you aren't out-of-pocket. We offer a streamlined process to buy homes, eliminating the waiting time and challenges that come with traditional market listings.
3. Transferring Title:
With the help of the attorney and the sale of the home, titleship can be transferred without any hitches, ensuring all assets are correctly distributed as per the decedent's will or state laws.
And finally…
We should complete this with a look of the two methods of selling a property in probate in North East Ohio:
Selling a property in Probate: Section 239
When you hear "Section 239 Sale," think of it as the express lane. This approach comes from the title 58, section 239 of North East Ohio's rules book. Why's it favored? Because you can bypass continuous court check-ins during the sale. It's almost like having a VIP pass!
Here’s a quick rundown of a Section 239 sale:
1. Kickstart the probate and earmark a date for the first hearing.
2. At this gathering, the court brings the will into the spotlight (if there is one), pinpoints the rightful heirs and any will-listed beneficiaries, and picks a lead – the personal representative.
3. Now, this head honcho petitions the court for a thumbs up on the Section 239 Sale. But there's a tiny detail: they need the green light from all heirs and beneficiaries.
4. If all parties are singing from the same hymn sheet, the court gives its blessing, and voila! The property can be sold with no extra court supervision.
Non-Section 239 Sale
This path surfaces when there's no unanimous vote for the Section 239 Sale, or when there’s a hiccup in spotting or reaching out to all involved parties.
And yep, the court's watching closely.
1. Initiate the probate and circle a date for its maiden hearing.
2. Here, the court dives into the will (if present), identifies the deceased's legal heirs and any named beneficiaries, and designates a personal representative.
3. This leader now steps up with a property sale plea. The court then sets its eyes on a hearing date and lets the community know via the local newspaper.
4. If all’s quiet on the objection front, the court waves its magic wand, sanctioning the sale. But if there’s a hiccup? Brace for some back-and-forths about the property's fate.
5. Once the court nods its approval, the sales ad hits the local papers. This period is prime time for the personal rep to welcome offers.
6. Bagged an offer? It's show-and-tell time in court. And here's a twist: other interested folks can chime in, either raising concerns or upping the offer.
It's clear; the non-239 route demands patience and can stretch over 2-3 months.
So, when diving into such sales, keep the timeline in mind to align everyone's expectations.
Remember, North East Ohio’s probate property journey might seem intricate, but with the right knowledge and a dash of patience, you'll find your way. Safe travels!
Need help navigating this?
Give us a call below:
216-290-0680
NOTE: we aren’t attorneys… just friendly trusted homebuyers in North East Ohio experienced in buying properties in Probate. Please consult a licensed probate attorney.
How to Bypass Probate in North East Ohio
When you inherit property after the passing of a loved one, the probate process might be the last thing you'd want to navigate, especially if you're unfamiliar with legal jargon and processes. Probate can be a long, public, and sometimes complicated process.
If you've recently discovered that you need to go through probate or are contemplating selling the property you've inherited, this guide is for you.
First off, before we get into a few ways to bypass Probate, let's clear the air on some concerns.
Why Should Property Heirs be Concerned About Probate in North East Ohio?
1. Time-consuming: Probate can take a significant amount of time, especially if the will or its provisions face any contestations. The property might be tied up for several months, delaying your ability to sell or renovate.
2. Privacy concerns: Probate proceedings in North East Ohio are public. This means that the distribution of the estate, its value, and beneficiaries all become a part of the public record.
How Can Heirs Bypass the Probate Process?
Unfortunately… All these 5 methods to bypassing probate must happen BEFORE someone passes -- while the owner is alive.
(We do have one method below where you can avoid the COSTS of probate)
If you own a property in North East Ohio, you should consider implementing one or more of these so that you’re heirs don’t have to deal with pains of Probate.
1. Use Payable on Death Accounts: Convert your bank and retirement accounts to payable on death (POD) accounts. By naming a beneficiary, the funds directly transfer to them upon your death without the need for probate.
2. Joint Ownership: By holding a title with someone else, like a joint tenancy, the property automatically passes to the surviving owner, avoiding probate.
3. Gifting Assets: One can gift their assets while alive, removing them from the probate process. While this method might be suitable for smaller assets, gifting significant properties like houses means you relinquish control.
4. Small Estate Shortcuts: If the total estate value is under $50,000, North East Ohio provides options like the small estate affidavit to expedite the process. Another shortcut is the Summary Administration, suitable for estates under $200,000 or other specific conditions.
5. Establish a Revocable Living Trust: A popular and comprehensive way to avoid probate. Properties within this trust aren't considered part of your probate estate after your death, facilitating smoother transitions to beneficiaries.
Should You Consult a Professional?
Absolutely.
(And we can help with that -- just contact us and we’ll refer you to a trusted Probate lawyer in North East Ohio!)
Especially if you have minor children or beneficiaries with unique needs, navigating the probate process or trying to avoid it can become complex.
Engaging with an experienced attorney can ensure you take the best path forward, keeping in mind the interest of all involved parties.
How to go through probate without paying for it
The simple answer to this is selling it.
As we say in this article...
Probate (even with a will) cannot be avoided once the owner is deceased.
And it’s costly.
And you might WANT to sell the property you’re dealing with, for one simple reason:
To pay off the debts and cost of probate
If there’s equity, it can be a really clean and efficient way to pay off anything that the deceased owner and/or property owed.
Selling Your Inherited Property at No Cost
For heirs faced with the complexities of probate, especially when funds are tight, the associated property can appear as both an asset and a challenge.
However, with a streamlined solution in place, this process can be made efficient and stress-free.
Zero Upfront Costs with a Trusted Homebuyer:
By choosing to sell to a trusted homebuyer, heirs can tap into a comprehensive solution that alleviates financial strain:
1. Immediate Referral to a Probate Attorney: Once the decision to sell is made, the trusted homebuyer refers heirs to a proficient probate attorney. This attorney specializes in handling probate cases and is well-versed with the intricacies involved.
2. No Out-of-Pocket Expenses: The unique aspect of this collaboration is that the heir doesn't have to pay any upfront costs for the probate process. The attorney handles everything without demanding immediate payment.
3. Property Sale Facilitation: Instead of listing the property and waiting indefinitely for a potential buyer, the trusted homebuyer streamlines the sale, offering a timely and fair transaction.
4. Settlement from Sales Proceeds: Once the sale is completed, the proceeds from the transaction are used to cover the probate costs, attorney fees, and any other associated expenses. This ensures that the heir is never out of pocket.
5. Peace of Mind: By choosing this route, heirs bypass the usual stressors of the real estate market, from home showings to buyer negotiations. Additionally, they have the assurance that all legal processes are expertly managed.
Need to sell your inherited property?
Give us a call/text for an offer: 216-290-0680
We’ll help you navigate the Probate Process cost free
The Ohio Probate Process Simplified: A Homeowner's Guide
If you've recently come into possession of a property because of a loved one's passing, you might be feeling overwhelmed.
The word 'probate' probably keeps popping up and, to be honest, it's not the most straightforward thing.
But don't worry, we've got you covered!
I'm here to help you understand the probate process in Ohio, from a friendly neighbor's perspective.
NOTE: We’re not attorneys, however we are trusted homebuyers in Ohio who work alongside experienced Probate attorneys to help you pass a property through probate!
Why Probate?
I Think of probate as the official stamp of approval from the court, verifying that everything related to an estate is sorted out—like debts, taxes, and property distribution.
In Ohio, even if there's a will, probate is needed to validate it.
And this is a good thing… They want to make sure everyone gets what’s due to them and treated fairly and the debts are collected and/or agreed on with a solution.
Probate has to be done -- even with a will.
Except for a few occasions highlighted in this article...
Probate HAS to be done in order to transfer ownership from the deceased owner to a new owner.
The property cannot pass to another person until it passes through probate
Some Quick Probate Terms
- Administrator: A person appointed by the court to manage and distribute the estate if the decedent died intestate or did not name an executor in their will.
- Beneficiary: An individual or entity (like a charity) named in a will or a trust to receive assets or profits from an estate
- Decedent: The individual who has passed away, leaving behind an estate that may need to be settled through the probate process.
- Estate Inventory: An official list of the deceased person's property.
- Executor/Executrix: The person appointed in the will to manage the decedent's estate. If a woman, she might be referred to as the executrix.
- Heirs: The people entitled to inherit the deceased person's property.
- Personal Representative: This is the court-appointed individual responsible for handling the estate—could be you!
- Will: A legal document that indicates how the decedent wished to distribute their property and assets after death.
How long does it take?
4-6 months
BUT… it can take longer (even a year) depending on the estate's size, creditor claims, and potential challenges to the will or the appointment of the Personal Representative, the duration could extend considerably.
How much does it cost?
$4,000 - $7,500
Unfortunately, there is a cost to probate.
It's a complicated situation you’re in…
The owner of the property passed… and debts have to be settled, and transfer of the property has to be done (even with a will), and all the stuff in the house has to be dealt with.
Without a court handling this… it would be a MESSY situation in families.
And families could even get sued by creditors.
You don’t want that to happen.
So, the best thing to do is get it settled ASAP.
Here’s a list of what these costs are:
1. Court Fees: The probate process takes place within the judicial system. Thus, there are associated court fees. These fees can vary based on the size of the estate and the jurisdiction, but they are necessary to cover administrative costs and maintain the operation of the courts.
2. Attorney Fees: Legal processes can be intricate and demanding. Engaging an attorney to navigate the complexities of probate law, file necessary paperwork, and represent the estate can be indispensable. However, attorneys charge for their expertise and time, and depending on the complexity of the estate, these fees can accumulate.
3. Executor or Personal Representative Compensation: The executor (or personal representative) is tasked with administering the deceased's estate. This is often a time-consuming job that includes tasks like notifying creditors, paying debts, and distributing assets. Because of the responsibilities involved, the executor is typically entitled to compensation. This compensation can be a percentage of the estate's value or a flat fee, as dictated by local laws or the deceased's will.
4. Appraisal and Business Valuation Fees: To ensure assets are distributed fairly, it's often necessary to appraise property and other valuable items within the estate. If the deceased owned a business, a valuation might be needed. Professionals who provide these services charge fees.
5. Miscellaneous Costs: Other costs can emerge, including those for publishing legal notices, securing and insuring property, and settling any disputes that arise during the probate process.
6. Tax Payments: Depending on the size and nature of the estate, there might be state and/or federal taxes to be paid. While this isn't a 'fee' in the traditional sense, it's an associated cost that needs to be covered.
Do you need a lawyer for Probate?
While there's no legal requirement to have a lawyer help you through probate, it can make the journey less bumpy. They can guide you, especially if there are challenges to the will or if the estate is complicated.
What If I Just... Don't Probate?
There's some (bad) advice online about NOT going through probate -- Which is false.
All properties that have a single individual owner (no trust or LLC/Corp) with no “transfer on death” deed or similiar… have to go through probate (even with a will).
If there’s any debt or obligations on the property or with the deceased owner, then the beneficiaries or heirs most likely will get sued along with the estate.
What to do while I wait
Probate in Ohio is LONG (3-4 months or more).
So while you’re waiting for the courts here are some tips:
Check up on the property every month.
a. Open up windows while you’re there -- to get in fresh air and prevent mildew
b. Check the plumbing -- for any leaks
c. Run the HVAC -- to make sure its still working and heat the house if needed
d. Look for critter evidence -- mouse droppings, insects, etc, to see if you need pest control
2. Keep your papers handy and multiple copies
a. Death certificate
b. Will
c. Deed
d. Loan information3. Pay for any bills ( if you can)
a. Don’t let the bills pile up and cost you more with all the fees.
4. Seek an attorney if you haven’t already
a. We can help with that
5. Find a buyer or an agent
a. We can get you a cash offer this week! Call us to at least see the offer: 216-290-0680
6. Keep the property maintenance to keep the value up
a. Lawn mowed
b. Lawn watered
c. Mail collected
d. Utilities managed
e. Alternatively: unlike most buyers, we look past all that stuff and offer a fair price to buy it!
How to Probate with no out-of-pocket costs
If you don’t have the $4,000-$8,000 lying around then there is one way you can go through probate without paying for it:
Selling it.
That might not be everyone's first choice, but the fact of the matter is you have to go through probate and the costs have to be paid.
And courts and attorneys who know that you want to sell it, will go through the process with no upfront costs required, and get paid with the proceeds of the sale -- assuming there’s enough equity.
We have an entire article on how to do this here.
What to do with the property?
I’m sure you have ideas circling your head about what to do with an inherited property..
You’re either had in your mind you want to sell
(If that’s the case for you, call us today at 216-290-0680 for a cash offer!)
Or you're considering renting the property once you get legal transfer of it…
If that’s the case, check out our article on how to rent a probate article.
Need to sell your inherited property?
Give us a call/text for an offer: 216-290-0680
We’ll help you navigate the Probate Process cost free
A New Way To Sell Your Property At Top Price, Effortlessly!With No Low-Ball-Investor Offers…
It all begins with an idea.
Dear homeowner,
If you’re reading this right now, it’s probably because you’ve already been presented with our brand new “Equity Protection Program”.
Here’s the recap of it:
You pay for no extra costs -- We agree and sign to a net price. This is the NET amount you’ll receive (before debt and liens). No commissions or closing costs are in that (we pay for all that).
You do none of the work -- We’ll do ALL the heavy lifting of selling the property: marketing it to our network and on the MLS, showings, dealing with appraisals, inspections, and contractors
Never be bothered by agents or buyers -- While we’re handling the concessions, the inspections, and the “back-and-forth” with buyers and agents… you’ll never be bothered by us or any buyers.
You get your promised NET amount -- After we facilitate the sale, and pay for all the marketing costs, the closing costs, and any other fees associated with selling… you get 100% of the original price we agreed on!
BONUS: Never pay for post-sale repairs -- Sometimes buyers might want some work done on the house. We’ll handle those for you at our expense.
It’s literally the easiest way to get your best price AND stay completely “out of the weeds” from selling a property.
So by this point…
You’ve been selected and offered this Equity Protection Program…
All we ask is for you to be flexible with time of sale (since we’ll be facilitating the sale and finding the right buyer for you)... and allow us reasonable access (if you need us to coordinate with tenants on your behalf we’re more than happy to).
But still…
You might be asking:
What happens if you don’t find a buyer?
Well first off, just like when listing it with an agent, the price is unfortunately not guaranteed.
If you need a guarantee of sale… we can talk about those other options. We have those options for you, just reply back to this email.
However, there are big differences between listing it with an agent and using our Equity Protection Program…
How’s this different from a listing with an agent?
We have a larger network of buyers than agents so it means with us you have a much better chance of getting your house sold and done with.
They’ll still nag you to clean things up, or get repairs done (With us, you don’t to do anything except sign the agreement)
With an agent, you don’t know how much your NET will be after they deduct closing costs and commission (with us the NET we agree is what you’ll get paid (not including any debt), so we pay for all other costs above your net promised).
Agents will only be looking for “as-is” buyers who are low ball (with us, we have networks of retail buyers, and hedge funds that are happy to pay full retail… and we market the property much better than agents).
With agents you still have to deal with appraisers and inspectors contacting you (with us, we’re happy to take on all that for you).
How is this different from your cash offer?
The cash offer is much lower in price than what you get with the Equity Protection Program… Because our cash offer is guaranteed and we can close very fast, it only works this way if it’s a discounted cash offer… with the Equity Protection Program it’s a much higher price in your pocket.
Our cash offer typically closes in 14 days... the Equity Protection Program needs a few more weeks.
Our cash offer needs less access (we just need a couple of visits to verify repair costs)... The Equity Protection Program needs more access to the property.
With our cash offer, we’ll close with our own funding or from our partners… The Equity Protection Program reaches out to a network of buyers, negotiates, and sells your property to them on your behalf without any hassle or costs to you.
Cons of the Equity Protection Program:
It’s not suited for those that need to sell in less than a month -- takes longer than a cash offer
It’s not suited for properties that need repairs or have non-paying tenants -- these are harder to sell to buyers without being low balled; however you’ll find that our cash offer doesn’t care how many repairs or what type of tenants you have.
Benefits of the Equity Protection Program:
You get a much higher cash offer than normal
No commission attached
Less hassle than a traditional listing (We don’t demand anything from you, and we do all the heavy lifting)
No closing costs
So then why consider the Equity Protection Program?
Because if you desire the BEST price with the convenience of a NO HASSLE sale…
… Then this might be your best.
If you’ve been selected and presented with this Equity Protection Program from us, and you’d like to continue with it…
Then call us today to start the selling process!
216-290-0680
6 Little-Known Ways To Stop Foreclosure In Its Tracks
It all begins with an idea.
Life happens. And everyone goes through a time in life when there’s a hardship that might cause financial obstacles.
Whether you’ve hit a “bump” on the road with paying your mortgage, or you’ve lost your job, or some other financial distress -- it doesn’t matter -- we want to help you and give you ALL The information you need to make the best decision for your situation.
Because everyone's situation is different -- but the process for foreclosure and the little ways to stop it don’t change.
Before you go, if you didn’t know…
Ohio, is a “non Foreclosure”.
That means that the lender doesn’t have to go through a lawsuit or court process to take your home.
That’s good and bad.
Good in that you don’t have to deal with a messy lawsuit.
But, typically this type of foreclosure is much faster than judicial.
Let me break down the steps of foreclosure inOhio:
**Before we go on… know that we’re not lawyers. We are only house buyers. Consult with an attorney regarding foreclosure law and what you can formally and legally do. This article is only meant to entertain and inform from our point of view, which is not legal advice.
Step for a Non-Judicial Foreclosure in Ohio
Pre-Foreclosure Notice: In Ohio, prior to commencing a foreclosure action, the lender is generally required to serve a pre-foreclosure notice known as a "90-Day Notice of Intent to Foreclose" to the borrower. This notice provides the borrower with 90 days to cure the default or evaluate foreclosure prevention alternatives.
Filing a Foreclosure Lawsuit: If the borrower fails to cure the default or reach an alternative resolution during the 90-day notice period, the lender can initiate a foreclosure lawsuit by filing a summons and complaint in the appropriate court. The specific court will depend on the county where the property is located.
Service of Process: After the foreclosure lawsuit is filed, the borrower must be served with the summons and complaint, providing them notice of the lawsuit and an opportunity to respond. Service of process typically occurs within 30-60 days from the filing of the foreclosure lawsuit.
Response Period: InOhio, the borrower generally has 20-30 days to respond to the foreclosure lawsuit by filing an answer or other appropriate legal documents. Failing to respond within the given timeframe may result in a default judgment in favor of the lender.
Discovery and Pretrial Phase: Once the borrower responds to the foreclosure lawsuit, both parties may engage in the discovery process. This phase involves gathering and exchanging relevant information and evidence related to the case. It also provides an opportunity for settlement negotiations, mediation, or other alternative dispute resolution methods. The duration of the discovery and pretrial phase can vary widely depending on the complexity of the case and court scheduling.
Foreclosure Judgment: If the case does not reach a settlement, the court will review the evidence and arguments presented by both parties. If the court finds in favor of the lender, a foreclosure judgment will be issued. The specific timeline for obtaining a foreclosure judgment can vary, but it typically takes several months to a year or more from the initial filing of the lawsuit.
Sale of the Property: Following the foreclosure judgment, the court will schedule a foreclosure auction or sale to sell the property. The sale is typically conducted by the county sheriff or a referee appointed by the court. The specific timeline for the sale will depend on the court's schedule and local practices.
**It's important to note that these timelines are approximate and can be influenced by various factors, including court backlogs, borrower responses, and the complexity of the case. It's advisable to consult with a foreclosure attorney or seek legal advice for precise timelines
That’s a lot of steps!
And the farther you get into it, the more hassle and difficulty to stop the process or even sell your property.
So once you start this whole thing… come up with plan A, plan B, and Plan C to stop it before you get to the “auctioning” of your property….
Where you’ll get no penny back and some low-ball investor will get your house.
So here are 6 ways (actually 7 with a bonus at the end), to stop foreclosure:
Bank Negotiation -- You can actually work out a compromise with the bank during the NOD stage. They WANT to help. They don’t want to take up the hassle of owning a property, and/or going into the auction. They can work out a new agreement that modifies your loan to something you can afford and makes sense to them. It’s as easy as calling the number they give (they should have mailed you a few times by now)
Short sale -- In some counties, for every offer you receive the bank MUST consider it. And if you owe more than what the house is worth, you’ll have to do what’s called a “short sale” which means you sell for less than the loan amount. And sometimes The truth is, if a bank takes over your house, they are going to try and immediately sell it (and sell it for a VERY low price to an investor); they actually DON’T want that hassle. And will consider a “short sale” offer instead -- even if it means they’ll lose money. After the NOD has been initiated, it’s important to start searching for offers immediately for banks to consider.
Bankruptcy -- This stops foreclosure dead in its tracks. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing any collection (including foreclosure. This might sound like an ideal situation, but here’s the truth of it: You’ll have to go to court, and your debt collectors (the bank/lender) will also appear in front of the judge. The judge’s role is to play “referee” between you and the bank, and you still might have to owe after that. The method only buys you time, and the judge may create a “payment plan” for all that you owe. It doesn’t necessarily “erase” foreclosure… and… it will be on your record for a while. Consult with a bankruptcy attorney regarding whether filing for bankruptcy is a good strategy for you.
Deed in Lieu of Foreclosure -- You can, through negotiation, offer to sign over the house deed to the bank/lender. They become the new owner overnight and you won’t get the equity, and you’ll have to leave the house or be evicted. This method certainly does stop foreclosure easily and quickly, but with some drawbacks. First off, lenders are reluctant to take over a deed. They don’t want to become property owners, only collect mortgages. This method is usually done when you’ve had your house listed for sale for quite a while, but still can’t sell it AND you’ve presented a case that you’re in financial hardship and can’t find any way to make payments. In those cases, the banks will consider a Deed in lieu. However, even when all these factors are present, many lenders will not agree to a deed in lieu, but it is worth a try!
Assumption of the loan -- Most loans these days are no longer assumable. The average mortgage now contains a “due on sale” clause by which the borrower agrees to pay the loan off entirely if and when they transfer the property. However, if you are facing foreclosure, you might be able to persuade your lender to modify your loan, delete this clause and allow another buyer to assume your loan. The lender may want to assess the new buyer’s qualifications, but it can be a win-win-win option for all. You might be able to negotiate a down payment from the buyer which you can use to pay off your outstanding past-due mortgage balance.
Lease Option -- This is one of my favorites, but in this scenario, the prospective buyer becomes your tenant (at first), and you continue owning the property until the buyer has saved enough down payment money, improved their credit sufficiently or sold their other home. In most situations, the buyer will make a one-time, lump option payment upfront, paying you to obtain the option to purchase your home. How does this stop your foreclosure? When this tenant pays a lump sum to buy their option, that lump could be enough to bring your mortgage current and remove the NOD. Then, you have a tenant (who has an interest in buying your property so he/she will most likely always make payments on time), who’ll pay the mortgage. Of course, in this scenario, you can’t live in the house with your tenant… but it is a very quick and easy way to stop the foreclosure AND keep your asset!
I promised a 7th way, and it’s something we’ve most likely offered to you already.
… And it’s our hassle-free cash offer program.
We can buy your house in 14 days (typically)...
… And you don’t have to make a single repair…
… nor pay for closing costs or agent fees…
.. and you can even leave all your unwanted things behind.
It’s one of the easiest and quickest ways to get out of foreclosure AND get money in your pocket (if you’re not too much “underwater”)
Contact Us At: 216-290-0680
Lock In Your No-Hassle, Fee-Free Cash Offer Today!
6 Little-Known Ways To Stop Foreclosure In Its Tracks
Life happens. And everyone goes through a time in life when there’s a hardship that might cause financial obstacles.
Whether you’ve hit a “bump” on the road with paying your mortgage, or you’ve lost your job, or some other financial distress -- it doesn’t matter -- we want to help you and give you ALL The information you need to make the best decision for your situation.
Because everyone's situation is different -- but the process for foreclosure and the little ways to stop it don’t change.
Before you go, if you didn’t know…
Ohio, is a “judicial Foreclosure”.
That means that the lender must take you to court to go through foreclosure.
That’s good and bad.
Bad in that you have to deal with the hassle of a trail.
Good in that judicial foreclosure typically takes a little longer than “non-judicial” foreclosure in some states.
Let me break down the steps of foreclosure in Ohio:
**Before we go on… know that we’re not lawyers. We are only house buyers. Consult with an attorney regarding foreclosure law and what you can formally and legally do. This article is only meant to entertain and inform from our point of view, which is not legal advice.
Step for a Judicial Foreclosure in Ohio
Pre-Foreclosure Notice: In Ohio, prior to commencing a foreclosure action, the lender is generally required to serve a pre-foreclosure notice known as a "90-Day Notice of Intent to Foreclose" to the borrower. This notice provides the borrower with 90 days to cure the default or evaluate foreclosure prevention alternatives.
Filing a Foreclosure Lawsuit: If the borrower fails to cure the default or reach an alternative resolution during the 90-day notice period, the lender can initiate a foreclosure lawsuit by filing a summons and complaint in the appropriate court. The specific court will depend on the county where the property is located.
Service of Process: After the foreclosure lawsuit is filed, the borrower must be served with the summons and complaint, providing them notice of the lawsuit and an opportunity to respond. Service of process typically occurs within 30-60 days from the filing of the foreclosure lawsuit.
Response Period: In Ohio, the borrower generally has 20-30 days to respond to the foreclosure lawsuit by filing an answer or other appropriate legal documents. Failing to respond within the given timeframe may result in a default judgment in favor of the lender.
Discovery and Pretrial Phase: Once the borrower responds to the foreclosure lawsuit, both parties may engage in the discovery process. This phase involves gathering and exchanging relevant information and evidence related to the case. It also provides an opportunity for settlement negotiations, mediation, or other alternative dispute resolution methods. The duration of the discovery and pretrial phase can vary widely depending on the complexity of the case and court scheduling.
Foreclosure Judgment: If the case does not reach a settlement, the court will review the evidence and arguments presented by both parties. If the court finds in favor of the lender, a foreclosure judgment will be issued. The specific timeline for obtaining a foreclosure judgment can vary, but it typically takes several months to a year or more from the initial filing of the lawsuit.
Sale of the Property: Following the foreclosure judgment, the court will schedule a foreclosure auction or sale to sell the property. The sale is typically conducted by the county sheriff or a referee appointed by the court. The specific timeline for the sale will depend on the court's schedule and local practices.
**It's important to note that these timelines are approximate and can be influenced by various factors, including court backlogs, borrower responses, and the complexity of the case. It's advisable to consult with a foreclosure attorney or seek legal advice for precise timelines
That’s a lot of steps!
And the farther you get into it, the more hassle and difficulty to stop the process or even sell your property.
So once you start this whole thing… come up with plan A, plan B, and Plan C to stop it before you get to the “auctioning” of your property….
Where you’ll get no penny back and some low-ball investor will get your house.
So here are 6 ways (actually 7 with a bonus at the end), to stop foreclosure:
Bank Negotiation -- You can actually work out a compromise with the bank during the NOD stage. They WANT to help. They don’t want to take up the hassle of owning a property, and/or going into the auction. They can work out a new agreement that modifies your loan to something you can afford and makes sense to them. It’s as easy as calling the number they give (they should have mailed you a few times by now)
Short sale -- In some counties, for every offer you receive the bank MUST consider it. And if you owe more than what the house is worth, you’ll have to do what’s called a “short sale” which means you sell for less than the loan amount. And sometimes The truth is, if a bank takes over your house, they are going to try and immediately sell it (and sell it for a VERY low price to an investor); they actually DON’T want that hassle. And will consider a “short sale” offer instead -- even if it means they’ll lose money. After the NOD has been initiated, it’s important to start searching for offers immediately for banks to consider.
Bankruptcy -- This stops foreclosure dead in its tracks. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing any collection (including foreclosure. This might sound like an ideal situation, but here’s the truth of it: You’ll have to go to court, and your debt collectors (the bank/lender) will also appear in front of the judge. The judge’s role is to play “referee” between you and the bank, and you still might have to owe after that. The method only buys you time, and the judge may create a “payment plan” for all that you owe. It doesn’t necessarily “erase” foreclosure… and… it will be on your record for a while. Consult with a bankruptcy attorney regarding whether filing for bankruptcy is a good strategy for you.
Deed in Lieu of Foreclosure -- You can, through negotiation, offer to sign over the house deed to the bank/lender. They become the new owner overnight and you won’t get the equity, and you’ll have to leave the house or be evicted. This method certainly does stop foreclosure easily and quickly, but with some drawbacks. First off, lenders are reluctant to take over a deed. They don’t want to become property owners, only collect mortgages. This method is usually done when you’ve had your house listed for sale for quite a while, but still can’t sell it AND you’ve presented a case that you’re in financial hardship and can’t find any way to make payments. In those cases, the banks will consider a Deed in lieu. However, even when all these factors are present, many lenders will not agree to a deed in lieu, but it is worth a try!
Assumption of the loan -- Most loans these days are no longer assumable. The average mortgage now contains a “due on sale” clause by which the borrower agrees to pay the loan off entirely if and when they transfer the property. However, if you are facing foreclosure, you might be able to persuade your lender to modify your loan, delete this clause and allow another buyer to assume your loan. The lender may want to assess the new buyer’s qualifications, but it can be a win-win-win option for all. You might be able to negotiate a down payment from the buyer which you can use to pay off your outstanding past-due mortgage balance.
Lease Option -- This is one of my favorites, but in this scenario, the prospective buyer becomes your tenant (at first), and you continue owning the property until the buyer has saved enough down payment money, improved their credit sufficiently or sold their other home. In most situations, the buyer will make a one-time, lump option payment upfront, paying you to obtain the option to purchase your home. How does this stop your foreclosure? When this tenant pays a lump sum to buy their option, that lump could be enough to bring your mortgage current and remove the NOD. Then, you have a tenant (who has an interest in buying your property so he/she will most likely always make payments on time), who’ll pay the mortgage. Of course, in this scenario, you can’t live in the house with your tenant… but it is a very quick and easy way to stop the foreclosure AND keep your asset!
I promised a 7th way, and it’s something we’ve most likely offered to you already.
… And it’s our hassle-free cash offer program.
We can buy your house in 14 days (typically)...
… And you don’t have to make a single repair…
… nor pay for closing costs or agent fees…
.. and you can even leave all your unwanted things behind.
It’s one of the easiest and quickest ways to get out of foreclosure AND get money in your pocket (if you’re not too much “underwater”)
Contact Us At: 216-290-0680
Lock In Your No-Hassle, Fee-Free Cash Offer Today!
Top Price With our Equity Annuity Program
What it is and how it compare?
Introduction:
At Mast Property Group LLC, we understand that selling your house is a significant decision that deserves careful consideration. That's why we're here to introduce you to our exclusive offering, the Equity Annuity Program. This innovative solution allows you to enjoy the benefits of a cash offer while providing you with additional advantages that can significantly enhance your financial well-being. In this article, we'll demystify the concept of structured settlements and explain how our Equity Annuity Program can make a positive impact on your life.
What is a Structured Settlement?
Structured settlements are a financial arrangement designed to provide a steady stream of income over a specific period. Typically, structured settlements arise from legal settlements, lottery winnings, or insurance payouts. Instead of receiving a lump sum upfront, the recipient receives regular payments, which can help ensure a stable financial future. By spreading out the payments, structured settlements offer individuals the opportunity to manage their funds more effectively and avoid the pitfalls of receiving a large sum all at once.
Introducing the Equity Annuity Program:
Our Equity Annuity Program is a unique twist on the traditional concept of structured settlements. It allows homeowners like you to enjoy the benefits of a structured settlement while unlocking the potential equity in your property. With our program, you can expect the following advantages:
1. Top Price for Your Property:
When you choose our Equity Annuity Program, we are committed to offering you the highest price possible for your house. We take into account the market value, condition, and potential of your property, ensuring that you receive an equitable offer that reflects its true worth.
2. Speed and Efficiency:
Selling your house through our Equity Annuity Program is as fast as a cash offer. We understand that time is of the essence, and we strive to streamline the process, eliminating unnecessary delays. Our experienced team works diligently to ensure a smooth transaction, allowing you to move forward with your plans without unnecessary hold-ups.
3. Tax Deferral Benefits:
One of the key advantages of our program is the ability to defer your tax payments. By structuring the sale of your property through our Equity Annuity Program, you can potentially reduce your tax liability. This advantage allows you to keep more of your hard-earned money, giving you greater financial flexibility and control.
4. Reliable Monthly Income:
Many sellers who choose our Equity Annuity Program view it as a reliable monthly income source. Instead of a one-time payment, you'll receive regular installments, which can provide stability and help you plan for the future. This steady income stream can be seen as an "equity protection program" that ensures a consistent cash flow over a designated period.
5. Hassle-Free Process:
With our Equity Annuity Program, you can enjoy a hassle-free experience. Unlike traditional buyers who may bring potential buyers through your home regularly, we eliminate the inconvenience and disruptions. You won't have to worry about staging your home, accommodating showings, or navigating the complexities of multiple offers. We streamline the process, making it as stress-free as possible for you.
Cash Offer vs. Equity Annuity Program:
While a cash offer provides immediate liquidity, our Equity Annuity Program offers a range of unique benefits that may better suit your needs. If you're looking for a top price, speed, tax deferral, reliable monthly income, and a hassle-free experience, our program can provide you with an ideal solution. We believe that the Equity Annuity Program is a comprehensive offering that combines the best elements of both a cash offer and a structured settlement, ensuring your financial security and peace of mind.
Conclusion:
At Mast Property Group LLC, we are dedicated to providing you with innovative solutions tailored to your specific needs. Our Equity Annuity Program empowers you to unlock the full potential of your property while enjoying the numerous benefits of a structured settlement. Take control of your financial future, and let us guide you through the process with professionalism and expertise. Contact us today to learn more about our Equity Annuity Program and how it can help you achieve your goals.