For people caught in a bad divorce, disposal of shared assets like a home can make a bad situation worse. Selling a home in a divorce via traditional means can be time consuming and challenging.
Since the mortgage crisis and housing bust of 2008, the government and financial institutions have put tougher roadblocks in front of consumers to qualify for mortgage loans. It now takes a near perfect credit rating and a significant down payment to get a loan. This has shrunk the pool of buyers, and particularly first-time buyers from entering the marketplace. There are alternative lending programs that are helping, but getting a traditional mortgage today is much more difficult than even a half-dozen years ago. This can be a problem for couples going through a bad divorce, who likely want the process to be over and done with. There is good news with the emergence of home investment groups who are looking for properties to invest in.
Home investors look at a property purely from a financial investment standpoint. Many home investor groups will take a property and rent it, choosing to see a long-term return. Others will buy homes in need of repairs, fix the property up, and then attempt to resell it. The fact is, home investor groups have available cash, and can quickly make a sale happen. This can be very valuable for those going through a divorce, especially when seeking a fast resolution.
Although some real estate agents consider themselves investors, there are significant differences between home investors and real estate agents. Real estate agents are paid a percentage of your home’s sale price to find a buyer. They don’t have any “skin in the game” so to speak. If they do not sell your home, they simply don’t make a commission. A real estate investor however, is looking for properties that offer them a longer term return. That time is not something those going through a bad divorce usually wish to spend waiting.
The biggest benefit is home investors offer a quick and easy way to sell a property. Transactions occur much more quickly than through a traditional real estate sale, and divorcing homeowners are free to move on with their lives.
If you are going through a bad divorce and are in search of an option to quickly sell your home, contact us at Senna House Buyers today.