7 Signs that you are a distressed seller
There are often some very telling clues to determining whether or not you are a seller in distress. Being a distressed seller does not always mean that there is an emergency; Only that you have certain motivations which retail sellers cannot relate to.
Sign #1) Property Management Frustrations
One of the biggest tells is being a landlord, but always having to micro-manage the property manager. Real estate property managers are notorious for having bad apples who do nothing more than collect rents. As for distributing them to you, the owner, that can be lacking.
We’ve come across management companies that claimed to make repairs, only to find out that none of them were completed. Such issues can have an effect on landlord insurance policies resulting in the insurance company cancelling your policy or refusing to cover the property in the first place. For example, siding issues can throw a red flag during insurance underwriting, and would need to repaired before insurance will issue a policy.
A property manager not distributing rents can result in negative cashflow, causing you to go into foreclosure or lack the funds to pay property taxes. In addition, some property management firms have personal relations with contractors, resulting in a serious conflict of interest. Bids for repair work can be over-inflated, and the management company would have no incentive for shopping around.
Some property managers are incapable of getting units rented within a reasonable timeframe, which can result in squatters taking over the home, vandalism, and obviously, not maximizing cash-flow.
Sign #2) Notice of Default
You may have received a notice of default letter in the mail. This is also known as the abbreviation NOD, and better known as a foreclosure notice. The legal term, “lis pendens“, is the preforeclosure – the beginning of the foreclosure process.
Getting a NOD in the mail can be extremely frustrating. You obviously had a reason to purchase the home, and you certainly don’t want to default and ruin your credit and borrowing prospects in the future.
Having a foreclosure in process can be a major stress point, and can cause major depression. Many homeowners think that the only way out is to either let it happen, or receive a miracle. Most often, it happens because of a change in financial resources. Job loss is normal in this situation. In reality however, a cash home buyer can be sought out, who will buy your house fast and put a stop to foreclosure quickly.
Sign #3) Fire Damage / Water Damage
Many times during a major damage event such as fire or flooding, homeowners may not have the insurance coverage to compensate for it and replace the house. This leaves the owner with the costs of demolishing the home, which they usually cannot afford. If the house is not demolished within a time-period, the city can impose fines that compound into large expenses. They can even take over the property through foreclosure, and still pursue you for collection of costs and fees.
Sign #4) Bad Tenants
Your tenants often pay their rent late (if at all), ignore the late fees, and have a regular police presence at the house. They have high traffic, making it appear as if the property has become a drug-house.
Bad tenants are often the result of lacking background check requirements when renting. This tends to happen because the rental property owner is in a hurry to get it occupied. What happens in these situations is the owner ends up in a constant state of eviction, which means they are not making a profit. Such a property can cause your personal finances to go downhill fast. Bad tenants can damage the property in the process, and make it really hard to sell for what you purchased it for.
Sign #5) Impending Divorce
Divorce may be new to you. Depending on your situation, you may be forced to sell your home, and perhaps other real estate assets you may have. The climate in your spousal relationship can determine how fast you need to sell your house.
Some divorces can be very unpleasant, and you may not want to spend lengthy time trying to sell your home on the multiple listing service with an agent/broker. In such a case, you are looking for an investor, also known as a cash home buyer.
Sign #6) Social Security Disability
In the case of social security disability, you may be living on a controlled income. Your limited income can become unmanageable, and it would be wise to sell real estate assets if you have them. Limited incomes can have a huge impact on lifestyle, causing depression and destruction of personal relationships. An infusion of cash may be your best recourse at this time.
Sign #7) Inheritance and Probate
You may have come into a property by inheritance, or are in the probate process currently by the passing of a loved one. What you may not know is that the costs for receiving and holding the property can be unmanageable. There may be issues with the property that result in code violations, which will add up fines and fees by the city.
Having a vacant property can easily result in squatters taking possession. In many states, squatters have rights, and would require you to go through a lengthy eviction process. These processes are not free, but actually have court costs associated with them which must be taken out of pocket.
Do you see your sign?
Your sign may be different from those listed above, but are certainly manageable by selling your house fast to cash home buyers such as National Cash Offer. Reach out to us by filling out the form, or calling toll-free at (877)-990-7774. There’s no obligation to speak with our experts or receive a fast cash offer from us.