How do we conduct business? Here are a few of our commonly asked questions.

General

A: Great question. We’re not agents, and we don’t list houses. We are professional home buyers: We buy houses Dallas-Fort Worth that meet our purchasing criteria. From there we may repair the house and resell it to another homeowner or keep it as a rental ourselves.

A: Many of the houses we purchase are below market value (we do this so we can resell it at a profit to another homeowner). We are looking to get a fair discount on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer cash, we close very quickly (no waiting for financing), and no time or effort or expense is required on your part of fix up the property or pay agent fees. If that’s what you’re looking for and you see the value in getting your house sold fast… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)

A:  Great question, and we’re an open book: Our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and values of comparable houses sold in the area recently. As you know, house values have taken a huge hit in the last 5 years and most areas still haven’t seen prices come back up. We take many pieces of information into consideration… and come up with a fair price that works for us and works for you too.

A: This is what makes us stand out from the traditional method of selling your house: There are NO fees or commissions when you sell your house to us. We’ll make you an offer, and if it’s a fit then we’ll buy your house (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs on the house (if any) and sell it for a profit (we’re taking the risks here on whether we can sell it for a profit or not, once we buy the house from you… the responsibility is ours and you walk away without the burden of the property and its payments… and often with cash in your hand).

A: Real estate agents list properties and hope that someone will buy them. The agent shows the properties to prospective buyers if there are any (the average time to sell a property in many markets right now is 6-12 months) and then take a percentage of the sale price if they find a buyer. Oftentimes, the agent’s commission is 3-6% of the sale price of your house (so if it’s a $100,000 house, you’ll pay between $3,000 – $6,000 in commissions to an agent). Agents provide a great service for those that can wait 6-12 months to sell and who don’t mind giving up some of that sale price to pay for the commissions. But that’s where we’re different: We’re not agents, we’re home buyers. Our company actually buys houses. We don’t list houses. Since we’re actually the one buying the house from you, and we pay with all cash… we can make a decision to buy your house within a couple of days (sometimes the same day). Again, we make our living by taking the risk to buy the house with our own cash, repair the house, and market it ourselves to find a buyer (which is the hard part in this market).

A: There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your house to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.

A. Call us at (682) 583-0535 and we’ll set an appointment at your convenience. We’ll need to see all the foreclosure letters, the latest statement from your lender(s) as to how much you owe both on the loan and missed payments, and a copy of the deed giving you title to the house. We want to help. Call us now!

Foreclosure

A. It is a legal process whereby a mortgage company or bank (also known as lender) sells your home to satisfy your mortgage loan. This happens when loan is in default – not paid. Foreclosure can also be a result of county property tax being unpaid.

A. Generally, lenders try to work with homeowners to avoid the foreclosure process, as it is expensive to the lender. Legally, though, a lender can start foreclosure process after one missed payment.

A. You can fix the issue is causing the foreclosure process, i.e., catch up missed payments or taxes.

A. Several options available explained below:

  •  Refinance the loan with another lender;
  • Request a loan modification, restructure the loan to catch up and/or lower the payments, or cure whatever the default is. This is referred to as loss mitigation, with the intent to prevent disclosure.
  • Borrow money from friends or relatives to cure the default.
  • File bankruptcy. However, this has other credit consequences. It is always recommended that you speak with a bankruptcy attorney to understand your eligibility to file and the requirements. Bankruptcy may only delay the foreclosure.
  • Sell the house before the foreclosure date, either by engaging a realtor or selling it yourself.
  • Sell your house to a “wholesaler” who will have you sign a contract for sale, then “assign” that contract to an investor for a fee.
  • Sell your house to an investor such as us. We can take over payments, close fast and help you move. More importantly – you don’t have to do any repairs to the property. We will either keep the home or sell it later.
  • Fight the foreclosure in court. It is best to hire an attorney and have a good reason why the foreclosure action in your case is flawed. This often is only a delaying tactic.

A. The foreclosure process is very quick in Texas. Here’s what happens when the lender decides to foreclose:

  • Two certified mail notices must be sent to the homeowner;
  • The first notice is called “Notice of Default and Intent to Accelerate,” which gives formal notice that the mortgage is in default. This affords the homeowner an opportunity to cure the default. Homeowners generally have 20 days to cure the default;
  • The second notice is called “Notice of Acceleration and Posting of Foreclosure.” It must be sent at least 21 days prior to the foreclosure date, which is the first Tuesday of the month in Texas;
  • This second notice is filed with the county clerk and physically posted at the county courthouse;
  • On the first Tuesday of the month (generally), the trustee for the lender auctions the property for the lender; and
  • The lender often bids the amount of the delinquent loan plus any costs or fees. Other bidders may bid more when they see possible equity in the house that they can get if they are successful in winning the bid. If only the lender bids, then they will take title to the property. If another bidder wins, then the lender is paid and any excess proceeds over the amount required by the lender is paid to the homeowner.

A. Folks facing foreclosure are known as distressed sellers because they need to take some action before they are foreclosed on. You are getting mail from wholesalers and investors, like us. There is a difference between the two.

  • Wholesalers do heavy advertising for people to “sell” their houses to them. But generally, the wholesaler does not actually buy the property, but simply gets the homeowner to sign a sales contract, which the wholesaler then markets and sells to an investor, such as us.
  • Investors such as us help distressed owners by taking over the property from the seller. We may take over the payments, called taking the property “subject to,” or work out payment terms with the seller. We will cure the default, which may mean we make up the missing payments or taxes.

A. You credit rating takes a huge hit. You may not be able to get another mortgage until several years have passed, and you may even have difficulty renting an apartment or house. Avoiding foreclosure, even if it means having to sell your house for less than you think its worth, is a better alternative than having your credit rating ruined further.

A. We are not wholesalers. We will help you if it makes sense for both you and us. We can make up the past missed payments or taxes to stop the foreclosure, and take over your payments, although you will remain on the loan. Assumption of loans no longer occurs. We will either rent or sell your house after we have taken title. You must never lose sight of the fact that a foreclosure will happen if something is not done. You will have to move when your house is sold. And if the foreclosure happens, your credit will be hit with the equivalent of an atomic bomb, which could negatively affect you for years.

Why Is Selling Your House To Us “Subject To” Your Current Mortgage A Good Option?

One method we use to purchase houses is known as buying “subject to” the current mortgage. That is, we take title to the property, but the existing mortgage stays in the seller’s name. 

So, why would you EVER let someone take over your property while still being responsible for the mortgage? It’s simple – it’s a relatively easy method of avoiding foreclosure and the further ruin of your credit. If you can no longer afford to make the mortgage payment, wouldn’t it be better for us to make the payments rather than you experiencing foreclosure? 

This method may be an attractive option even if you aren’t facing foreclosure. We buy the house “as-is,” and don’t ask you to make any repairs. You don’t pay a commission, and you don’t pay closing costs – we do. Finally, you don’t have to worry about staging the house or keeping it in tip-top condition every day while strangers walk through your home, looking at your things. The following answers will address many of the questions you may have.

A. Not at all. Buying property subject to the current mortgage is not a scam. It’s merely an alternative for selling your property, especially when there may be missed payments and/or other legal encumbrances against the property. Our real estate attorney handles all the legal paperwork, and the closing is done in the associated title company. If the method was a scam, attorneys wouldn’t handle these transactions, and they’ve been doing it for years.

A. This is a valid concern, one we were more concerned with until we had multiple attorneys explain the due on sale clause. The clause gives the bank the option to call the mortgage due – not the requirement. In other words, the bank is not required to ask for the mortgage to be immediately paid off. Banks rarely call the mortgage due; they are more interested in getting the monthly payments than foreclosing on a loan. Foreclosure is an expensive and time-consuming action for them. Moreover, banks and other lending institutions do not want to be in the real estate business. Can we a guarantee that the mortgage holder won’t call the mortgage due? No. No one can make that guarantee. However, if the bank does call the mortgage due, our attorney would handle the situation.

A. Your name will stay on the mortgage until it is paid off, and if you apply for another mortgage, the current mortgage will show up on your credit report. While the fact that your name remains on the mortgage is a valid concern, you should consider your current financial circumstances. If you are facing a dire financial situation, one that may have a disastrous impact on your credit and financial life, then perhaps having your name remain on the mortgage may not be a major issue. If this is a major concern, then selling the property to us subject to the current mortgage may not be the best option for you. And while we can’t guarantee it, but depending on the situation, we may either sell or refinance the house at a later date, thus paying off your mortgage.

A. There are two major reasons that we will make the payments timely. First, it’s the right thing to do. It would just be wrong to harm those that place their trust in us.

Second, making the payments is crucial to our business model. We have the financial backing to make the payments as long as necessary. Not making the mortgage payments prevents us from accomplishing our own business objectives.

We may sell the house to another buyer, rent it, or refinance it after a few years. Whatever we do, this gives you the opportunity to make a fresh start.

A. Purchasing real estate is a business for us and, like any business, the deal must be profitable to us. If there is no profit, there is no sense in doing the deal. There are several ways you can be compensated for your equity, depending on the amount. This is something to discuss when we speak.

In some circumstances, we may be able to lease it back to you.

What do you have to lose?