Is your property in such bad condition that banks refuse to write a mortgage on it?
We usually see this occur with investment properties that have fallen into a state of disrepair, or that have been vandalized by tenants or thieves (especially copper thieves).
The Bad
- Potential buyers may find it impossible to obtain financing from a bank to purchase such a home.
- The owner may be required to make repairs before the bank will approve financing.
The Good
- There are cash buyers, usually investors, that don’t require a loan to purchase your home. Many are eager to find homes in disrepair that they can purchase, renovate, and resell at a profit.
- A cash-strapped purchaser may be able to obtain unconventional financing. This usually involves “Private Money” or “Hard Money” Lenders.
Many Real Estate Agents/Brokers will have several cash buyers that they can call when banks refuse to take write a mortgage because of a property’s condition. Many agents/brokers will be able to spot this potential issue as soon as they walk into a home.
At Bayview Estates Realty, we believe in putting people before profit. If you are interested in selling, buying, or renting a home, please feel free to contact us at 516-777-0146. Thanks for stopping by!
