Joe Ruben

Understanding Your Options During the Foreclosure Process

March 18, 2019 by Joe Ruben

1 out of every 200 homes falls victim to foreclosure. That’s according to numbers compiled by the FDIC.

The foreclosure process can be scary, but it doesn’t mean you should panic. You should treat it like a serious matter, of course. But you should also look at all your available options.

What happens when your house is foreclosed? First of all, it takes a few months. You won’t have a home one day and be out on the street with no warning the next day.

Read on for all the information you need to know about what happens when your house is foreclosed.

How the Foreclosure Process Starts

The foreclosure process begins when a homeowner stops paying their mortgage. It doesn’t begin after a single missed payment though.

In general, a mortgage foreclosure won’t begin until you’re at least three months behind on your house payments.

If you’re wondering why people don’t just make their payments, it’s not because they forgot. On a similar note, no one is sitting around their house and thinking, “I could pay the mortgage, but what’s in it for me?”

People facing foreclosure are almost always in dire financial straits. They may have lost a job. Perhaps a family member died and they can’t pay the bills anymore.

A few years ago during the housing market bust, some homeowners performed what’s known as a strategic default. But even that is often an act of desperation.

The lender will give the homeowner some time. But after a few months, they’ll file a notice with the local government. This is sometimes known as a notice of default.

Pre-Foreclosure and Short Sales

For the homeowner who comes home to a foreclosure notice on their front door, it can feel like the timeline suddenly speeds up. But even then, they still have a grace period.

The grace period gives them time to work out an agreement with their lender. In some cases, the homeowner will be able to pay what they owe. But in other cases, a short sale is the best option.

A short sale is often confused with selling your home for cash. They’re not the same thing.

A cash sale means you don’t involve real estate agents or anyone else. When the buyer pays you, you keep 100 percent of the sale price. But you still owe the remaining balance on your mortgage.

Short sales happen during pre-foreclosure. It’s a way for the lender to get back some, but not all, of their loan.

Let’s say you bought a house for $400,000. A few years later, you still owe $325,000, but the house’s value has plummeted to $275,000.

In a short sale, the bank would agree to accept a sale price of $275,000 to settle the debt.

It doesn’t always work. But when it does, it can be an effective way for both the lender and homeowner to avoid a foreclosure auction.

Avoiding a Foreclosure

Going through the foreclosure process means living with a near-constant sense of dread. You may feel like you’ve failed.

But you haven’t failed, and you can’t give up. You still have certain rights. The bank might not mention them, but they do exist.

We can help you avoid foreclosure. Contact us today to find out how.

Are You Penalized for Your Profit? Understanding Capital Gains Tax on Inherited Property

March 17, 2019 by Joe Ruben

It’s been estimated that between 2007 and 2061, nearly 93.6 million Americans will inherit roughly $59 trillion. Of that whopping $59 trillion, a portion of it includes property.

For those fortunate enough to receive an inheritance in the form of a home, you’ll probably think about selling it. However, there will be at least one issue nagging at you. You’ll wonder if Uncle Sam will have his hand in your profit.

If you keep reading, we’ll help you understand if you actually have to pay a capital gains tax on inherited property.

Exactly What Is a Capital Gains Tax?

Simply put, a capital gains tax is the small price you pay to the federal government whenever you sell property of significant value, i.e. a home, for more than you paid for it. Essentially, it’s a tax on the profit you make.

Since we are talking about inherited homes here, the recipient of an inherited home clearly hasn’t paid anything for the property. As such is the case, the government uses the valuation of the home at the time a person inherits the property as the starting point, and what the property eventually sells for to determine the actual profit.

So Will You Have to Poooay Capital Gains Tax on Your Inherited Property?

While it does depend on several factors, there’s a good chance you will wind up owing Uncle Sam something by way of a capital gains tax.

Besides looking at the profit you earn, the government will also look at your tax bracket, your marital status in terms of how you file your taxes, and how long you’ve owned the property.

Say, for example, you’re single with a taxable income around $68,000 a year, and you inherit a house in Nassau County valued at $395,000. If you sell it within a year for $415,000, you’re looking at an estimated capital gains tax as high as $4,400.

In another example, if all of the variables are the same except you’re married filing a joint tax return with a taxable income around $130,000, you’d still be looking at a capital gains tax as high as $4,400.

Are There Ways to Legally Avoid Paying Capital Gains Tax on Inherited Property?

America wouldn’t be America without its loopholes in the tax code. Should you inherit a home and decide to make it your primary residence for at least two years, then you’re looking at an exemption from the capital gains tax—that is, provided you don’t profit more than a set amount and haven’t taken advantage of a previous capital gains exemption for another property within a two-year window.

So You Still Consider Selling If You Have to Pay a Capital Gains Tax?

While the prospect of paying a capital gains tax on inherited property may seem daunting, don’t let it scare you into not selling. When you add up the costs for keeping a house you don’t plan on living in or think about the hassle of converting a home into a rental property, you’ll quickly realize selling is still a great option.

And when you’re looking to sell, make sure you contact us. We can deliver you a cash check for your home within seven days.

What’s It Worth? How to Determine the Value of Your Home

March 17, 2019 by Joe Ruben

The 2018 housing market was a bumpy ride for most home buyers. Prices shot up by 5%, while inventories remained low across the US. Inflation and wages had no chance of keeping up, so buyers had to get creative to get into a home.

But, 2019 is shaping up to be totally different. Inventories are increasing and prices are stabilizing. It’s a changing market with new rules.

Knowing how to determine the value of your home is more important than ever. Buyer’s are gaining ground, and that could mean a lower selling price for you.

But, you may not need to sell to a traditional buyer at all. You’ve got a smart option to consider. You could sell your home for cash.

But to do it right, you’ll need to know what your home is worth.

How to Determine the Value of Your Home

It’s a new year with a new housing market. Including new valuing trends. Learn how to determine the accurate value of your home with these smart tips.

1. Use an Appraiser

To get the best valuation, use a professional. It’s credible and based on the market. In most cases, hiring an appraiser gives you power at the negotiation table.

You will pay around $250 – $450 for the report. But, it’s worth it. It includes accurate pricing based on your home’s condition and location. Plus, you’ll get comparative sales data.

2. Check out Online Tools

If hiring a professional isn’t an option, try one of the many online tools available. You’ll get a reasonable idea of the market value of your home.

Find online home value tools by doing a quick Google search. Many lenders and banks offer them!

Even the government has a calculator tool! Check out the Federal Housing Finance Agency’s HPI Calculator. Type in your state, the purchase and valuation quarters, and the purchase price. The calculator does the rest!

3. Research the Neighborhood

A professional appraisal includes this kind of research. They’re called comps in the real estate business. But, many people who need to sell their homes for cash can’t afford the cost of an appraiser.

That’s ok, you can do the research yourself!

Find recent sales data in public records and online searches. Realtor.com can show you current listing prices. Use Zillow to find out more information about those homes closest to you.

Make sure you’re comparing apples to apples. Look at homes that are the same size and have the same features to get an accurate idea of the value.

Get Cash for your Home, Today!

There’s no need to suffer through the traditional buyer/seller process. It’s not worth the hassle when you need to sell right now. Especially, when you can learn how to determine the value of your home and sell it to a cash buyer.

Use the tips above to negotiate a great price. Then, sell your home for cash, today.

Looking for a cash buyer for your New York home? We can help! Contact us, today.

Show Me the Money: 5 Benefits of Selling Your House for Cash

March 13, 2019 by Joe Ruben

The average house for sale sits on the market for 65 days. But, what if you could sell your home in a week or less?

Selling your house for cash can make this a reality!

Selling a home in a traditional fashion is a complicated affair. With numerous parties involved, there’s a ton of waiting, negotiating, and pressure to satisfy buyers. Dealing with real estate agents’ and multiple buyers’ schedules can also be a hassle.

The deal can quickly go sour fast as well if the buyers’ financing falls through. Wasting more precious time while you get stuck with the bill and the headache of finding yet another buyer to negotiate with.

Buyers coming to the table with cash, however, can provide a great deal of relief and ease in the sales transaction. Read on to discover the top five benefits of selling your house for cash.

1. Immediate Transaction

When you and a cash buyer decide on a selling price, all that’s left is sending the check and signing over the title. As soon as the cash buyer’s check is in your bank account, the transaction is complete. Cash buyers significantly decrease the sales process time simply by bypassing financing a loan.

2. Fewer People Involved

In a traditional sale, there are numerous parties involved. Mortgage lenders, real estate agents, and the buying and selling parties. Not to mention insurance agents, inspectors, and appraisers. More people means more opportunities for problems to arise.

With a cash buyer, there are only two parties involved: sellers and buyers. No lenders or no real estate agents, which significantly simplifies the sales process.

3. No Home Repairs

Home repairs can easily begin to add up during the negotiation process with a traditional buyer. Nothing is off limits for a traditional buyer to ask to be repaired, which can send you into more debt or lead to more waiting after the buyer backs out.

When someone purchases your home for cash, no home repairs are required. The buyer purchases the home “as is” knowing that the responsibility lies on them to complete all home repairs.

4. 100% Sale Price

When a cash buyer purchases your home, you’ll receive 100% of the profits. This is because no real estate agents will be involved.

When real estate agents are involved in the sale of a home, both split a commission totaling 5% to 6% of the sale price. If your home sells for $100k, for example, then you’d be out $5,000 to $6,000.

Finding a cash buyer, on the other hand, allows you to pocket all the money.

5. More Security

Cash buyers offer more security because the sale is less likely to fall through. All that’s needed is an agreed upon sales price, a plan of ownership transfer, and the check deposited into your bank account.

This makes selling to a cash buyer more appealing to sellers because every day the house is on the market, they’re losing money. Traditional buyers also have multiple opportunities to back out of the deal. So, the seller ends up taking a gamble every time they sign a purchase agreement with a traditional buyer.

Selling Your House for Cash

Selling your house for cash can easily be a financially sound and beneficial decision. When you sell your home for cash, you can get back to planning your future and moving on with ease.

Interested in selling your house for cash in New York? Contact us today and find out if your property in Queens, Manhattan, The Bronx, or Brooklyn qualifies for an all-cash offer.

Need to Sell Your New York House Now? Fast Cash Investors Can Help

November 30, 2017 by Joe Ruben

If you own property in New York City that you need to sell fast, you should know that you have quite a few options. If your finances have you saying, I need to sell my house fast, we can help. Selling on short notice can be a daunting prospect, but there are several avenues for getting your home and mortgage off your hands quickly.

Selling your home to a fast cash investor could be an appropriate move, especially if you need to sell within days. A fast cash investor will buy your house from you “as is” and leave you with cash in hand in a matter of days. There are other options, too – Here’s a quick overview of everything:

Fast Cash Investors: The Quickest Option

While most homeowners prefer to sell through traditional real estate agencies, maybe you need to move out fast. It should matter why you need to sell quickly. We all know sometimes life leaves little room for response time.

Events which could necessitate a quick sale include a death in the family, loss of a job, separation from a significant other, unwanted inheritance, structural issues, property damage or code violations, bankruptcy, and foreclosure. While financial hardship is often behind a fast cash home sale, it can also be an ideal option if you’re simply looking to move fast.

If you find yourself in any of the scenarios above, selling your New York City house to a fast cash investor may be your best option to avoid foreclosure.

This article will go through a step-by-step process, then look at some of the pros and cons.

How The Fast Cash Process Works:

1) You Contact the Buying Company with Initial Details

This will include disclosing the type of information you’d find in a typical real estate listing: square footage, the age of the home, number of bedrooms and bathrooms, etc. It’s good to shop around at this point – contact several fast cash buyers to get a more accurate idea of a fair quote. Time is of the essence, especially if you’re facing foreclosure. So, call your fast cash investor ASAP.

2) The Buyer Offers You a No-Obligation Estimate

This step usually happens over the phone or online, and the estimate is based on the information you provide in step one. Remember to compare all your options! Don’t just jump on the best deal without thinking it over.

3) The Buyer Gathers Additional Information They Might Need

If you’re pleased with the quote you’ve received and choose to move forward with a sale, the buyer will generally arrange for an on-site evaluation to confirm the information provided and gather any remaining details.

4) After the Evaluation, the Buying Company Makes The Official Offer

Usually, they base this offer on your home’s projected After Repair Value (ARV) or a percentage of the average sale price for a home similar to your own. The buyer will estimate the costs required to get your property to resell on the market, such as repairs and real estate commissions, then subtract these from the ARV or average sale price, and finally offer you the difference.

5) Closing

You’ve accepted the offer, signed on the deal, and now the property is in the buyer’s hands. They take care of everything else! You’ll probably receive a check for the purchase within a few days.

Pros + Cons of Fast Cash Investor Sales

Pros:

If you need to move out of your property quickly, there’s no beating a fast cash sale’s timing!

Quick and Simple

It’s fast. It’s cash. You don’t have to tidy up your house, you don’t have to fix anything, and you don’t have to wait for approvals. The buyer pays closing costs, so you don’t have to worry about buyer financing. Plus, there are no fees for any middleman.

No Work on Your End

This is your best option if you have to get out fast, in a matter of days to weeks. You’re selling to an investor, meaning they got the cash on hand and ready. No haggling, no realtors, no open house, and no tours.

No Obligation

In general, homeowners who choose this option can expect to see roughly 60-80 percent of their home’s market value in cash. You’re under no obligations: decline, or accept and sign!

While these pros are convincing, assessing the cons can help you decide if a fast cash sale is right for your situation.

Cons:

Lower Value than Traditional Sale

The biggest con is that you likely won’t get the full value of your home – but you already know that going into this. It’s the sacrifice you make for speed when speed is necessary. Sure, you could get more money going the traditional route, but is the additional effort and time going to be worth it? It’s a gamble to wait it out using a realtor.

Fast cash sales admittedly aren’t for everyone.

Beware of Scammers

The fast cash market is rife with phonies looking to make a buck off sellers who haven’t done their research. With no intermediary person involved between buyer and seller, you have to be sure the buyer you choose is reputable.

While most fast cash home buyers are either wholesalers, investors, or builders, there are scam artists who will prey on your need to move quickly.

These buyers will use shady tactics to rob you of your home’s equity and leave you with a foreclosure down the line. They might also try and convince you to sign a misleading contract with you on the losing end.

Protect yourself from these disreputable buyers by making sure you’re dealing with a professional. Look up their reviews, check their credentials, and search for their listing with the Better Business Bureau. Additionally, you should always understand the contract you’re signing, and ensure all agreements are in writing.

And remember, if an offer seems too good to be true, that usually means it is.

In some cases, you might benefit from a lawyer reviewing a contract before you sign.

Don’t Forget To Pay the Mortgage in Full!

No matter what option you choose, you still are obligated to pay off your mortgage with your lender: Ideally, you’ll do this with the cash you’ve earned from the sale. However, if the value of your home is worth less than the remainder of your mortgage, you’ll need to make up the difference – in which case, a short sale might be a better option for you.

Sell My House Fast – Other Options

If selling to a fast cash investor doesn’t sound right for your situation, there are several different options for selling your property quickly:

Loan Forbearance: Loan forbearance essentially suspends or reduces your mortgage payments until you can get up to speed. You’ll need to apply for this process with your lender.
Deed-in-Lieu of Foreclosure: This option will put your property back into the hands of the mortgage lender. In this option, a negative balance may not be forgiven, which could negatively impact your home buying options in the future.
Foreclosure: Ideally, you’ll want to avoid foreclosure, as it can hurt your credit for almost a decade. When foreclosure is impending, most people don’t realize they usually have other options.
Short Sale: In a short sale, you work with your lender to sell your property for less than the remainder of your mortgage.
Assumed Mortgage: an assumed mortgage is when your lender allows a buyer to take over the remainder of your property’s mortgage. While rare, this option may be best in your scenario.

Tips to Sell Your House Fast

The best tips for selling to a fast cash investor involve acting quickly and being thorough in providing front-end information. Since the buyer will handle everything else, you shouldn’t have anything else to worry about.

If you go with a more traditional sale option, here are some tips to sell your place quickly:

Make repairs: Ensure that your property is in excellent condition to avoid losing value.
Keep it clean: Don’t let grime and clutter distract buyers from what your home has to offer.
Dress it up: Create an appealing atmosphere that showcases your home’s best qualities. Decorate and make it inviting!
Price it well: Do some research to avoid pricing too high to sell or too low to profit.

If you find yourself saying, I Need to Sell My House Fast, give us a call and we can help you! Call 877-561-6987

Call to Get Your Cash Offer Today

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