Advice On Selling My "Moldhouse" To Avoid Foreclosure
Came to TCI hoping you veterans out there can offer some advice. Purchased home in Chgo area (primary residence) turns out to have mold. Needs remediation/remodel. We want to sell to investor - don't know how to find any interested in this type of property. Okay, don't know how to find investor period! Will approach bank on short sale - thus far, willing to negotiate in leiu of foreclosure. Can you steer us in right direction? Any info appreciated. Direct e-mail is: **Please See My Profile**
Not to savvy on this forum board thing. Happy Holidays. Thank you - The Moldhouse people (as we are now known)
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boathouse - the first thing to do is decide on a path. Deciding on the path entails some financial analysis. Once you do the analysis you will be able to steer yourself in the direction that makes the most sense for you.
To do the analysis just determine where you are equity wise in the house.
If you have 30% or more equity and are willing to walk away from a large amount of it you should be able to easily sell it to an investor, since they will want somewhere around a 30% discount from fair market value. It won't be hard to find an investor, since they will be looking for this opportunity. Just run an ad in the paper in the real estate section saying you have a house you are willing to sell for a discount to an investor, you will get calls.
If you don't have the equity to do this, then you might get the bank to cut you a deal by reducing the loan by enough to make it appealling to an investor. This will involve a long process and they will only do this if they believe you aren't capable of continuing to make the payments. Usually the steps involve a homeowner missing payments for 90 days and a lender starting to foreclose, then you or the investor approach them with a short sale proposition, the bank will have wanted you to have the house listed and show that you can't sell it unless a discount off the amount owed is taken by them. In this case you won't have to find an investor, they will find you, they watch the foreclosure notices and will contact you.
If you do a deed in lieu of foreclosure you don't need an investor you will do that yourself with your lender.
Under waht condition did you buy the house? Take your contract to a good RE lawyer and see if you have recourse against the previous owner. Some time health detremental conditions are not vaiwed with AS IS close.
Mold in general is present in over 50% of older houses. If you can't smell it, it doesn't mean is not there. The right question is: When is going to come to surface and in the air when you definalty do not want to stay in such air quality condition?
I often inspect many HUD owned (trash) houses in LA aria. Most of those houses do have old and some are even condemned so is more then clear that hose will need a serious mold remedyation and remodeling. However, some REI (reed real estate moorons) do bid like is the nly in the world, beleiving their agents that they can symply just paint it with ioil based paint and that's would be it. ...and you know what? This days, they even succeed in reseling it for profit by doing exactly that and I am left to think: Is it worth knowing stuff or you should just be dum enough to be reach?
omega1[ Edited by omega1 on Date 12/22/2003 ]