Foreclosure is one of the most stressful experiences that any homeowner might go through. Most people fear facing foreclosure auctions. There are a lot of hidden costs attached to foreclosures; however, you could avoid all those costs if you sell your house fast in Denver to a cash home buyer.
In this blog, Sell House Fast Denver will discuss the five hidden costs of foreclosure auctions in Denver. Let’s also see how selling the house fast can help you retain the hard-earned cash.
Mostly, you get less than its market value when a home sells at a foreclosure auction. Statistics have revealed that foreclosed properties generally sold at auctions for 15%-30% less than the actual market sales. When the foreclosure sale price is less than the mortgage balance, the lending institution can file a deficiency judgment against the homeowner. It can result in more obligations long after the home sells.
Moreover, deficiency judgments can amount to thousands of dollars in a homeowner’s liability. It eventually results in wage garnishment or liens on other assets.
Selling your home quickly and for a fair market value can reduce the chances of facing a deficiency judgment while settling debts more positively.
The foreclosure process is quite time-consuming and involves many legal procedures. These procedures are also expensive. You must pay court, attorney, and other administrative costs. According to a Joint Economic Committee report of the U.S. Congress, legal fees can range from $2,000 to $4,000 or more depending on the state where the property is situated and the case’s complexity.
Furthermore, all this can easily translate to a lot of money and, at the same time, deplete the leftover equity after the auction.
The quick cash home sale option allows you to skip the legal process. So you would not have to spend on additional costs. The selling process is fast, and it just takes seven days.
Firstly, settlement costs consist of fees and commissions. It can swallow a big chunk of the sale proceeds. Some of these costs consist of commissions paid to the auctioneer and advertising fees. You may also have to pay for the expenses incurred in maintaining administrative facilities.
Often, all these eat up a large part of the sale price. According to a National Consumer Law Center study, fees charged by an auctioneer can be between 5% to 10% of the sale. It varies according to the auction house and the state regulations.
If you add an auctioneer fee between $15,000 and $30,000, when your home sells at a foreclosure auction at $300,000, you will face a substantial cut.
The sale of your home to a cash buyer in Denver is free from such charges. Since the latter will not require any auctioneer or other added admin fees. Moreover, they take care of closing costs and have no realtor commissions.
During the months-long, years-long foreclosure process, the homeowner must maintain the property. You must pay holding costs such as property taxes, insurance, and utilities. Data from ATTOM Data Solutions reports that the average foreclosure in the United States takes approximately 857 days to two years. During that time, those holding costs might increase.
Moreover, taxes, insurance, and utilities keep draining a homeowner’s money and increase debt.
A fast sale to a cash home buyer in Denver stops all holding costs and maintenance. You can also use the money for other essential payments. That’s a big game-changer during challenging times.
Vacated homes, especially those under foreclosure, are more susceptible to vandalism, theft, or damage from neglect. According to the Mortgage Bankers Association, the likelihood of vandalism on foreclosed properties is 50% higher than on occupied properties. Property damage could further increase one’s loss and diminish the auction value.
Vandalism or damage to a home may decrease its value and lower sale prices in an auction. Thus, it badly decreases the owner’s equity recovery.
Selling your home quickly, “as-is,” reduces the risk of destruction of property. It ensures that you receive a reasonable price without further losses.
Hidden costs associated with a foreclosure auction can drown you. Selling the house quickly to a cash home buyer helps avoid expenses or fees related to an auction. Here’s why it makes sense:
Fees of an Auction Commission: Direct sales mean no auction commission fees. You can save all the money in your pocket.
Offers Based on Fair Market Value: Cash home buyers provide the best cash offer per market value. In this way, you can avoid deficiency judgments.
Avoid Legal Hassle: The sale bypasses the official foreclosure process. It will save you time and money going to court and legal costs.
Lower Holding Costs: Sales will not take long. So when we buy your houses in Denver as-is, you can lower the costs of holding the home during foreclosure.
Reduced Risks of Property Damage: Prompt Sales also mitigate risks of vandalism or property damage, thus maintaining the property’s value.
Sometimes, foreclosure auctions appear to be the only viable option. However, the hidden costs of a foreclosure tell us it’s better to sell to a cash home buyer.
The best choice is to avoid those costs by selling fast to a top-notch Denver cash home buyer. If you are facing foreclosure in Denver, consider selling your home fast. Contact a local cash home buyer in Denver today to escape foreclosure.
If you plan to downsize, we have options for it, too. Whatever the reason, if you want to sell a house fast in Denver, call 770 872 7833.
