Can I Stay in My House After Selling it?
Some people find themselves in a situation where they need to sell their house for financial reasons, but really don’t want to give up their living situation. If you are in a state of financial distress and cannot keep up with your full mortgage or property tax payments, you will eventually find yourself in this situation. It is best to sell while you can—before the banks or county tax collectors come to take your property.
Benefits of a Cash Sale
A cash home sale to a real estate investor is often the quickest and most effective solution. They will offer you a fair cash value on your house and will generally purchase it in as-is condition. This means the closing process can be completed very quickly and you can get out from under the financial burden of your property. Whether you come out ahead once you pay off your mortgage debt, break even or lose a little, any result is usually much better than completely losing your house with no money back. And, that’s exactly what will happen if you find yourself in a foreclosure or tax default.
A cash home sale will can take a very short time to complete. At PropertyLark, we’ve been known to complete some deals within 7 business days. This is compared to several months it would usually take to prepare, list and complete the transaction for a traditional real estate sale. Plus, you have added costs of hiring a real estate agent and possibly needing to make repairs if your home is in bad shape. These expenses are in addition to ongoing homeownership costs you would need to pay during the selling period, such as mortgage payments, property taxes, HOA dues (if applicable), utilities and homeowners’ insurance.
So, Can I Stay in My House After Selling?
Getting back to the main question, you will have to move out in most instances. You may be able to work with the buyer to give yourself a little extra time. Regular home buyers will likely want you out as soon as possible so they can move in. Some cash real estate investors may be more flexible than others. Some may want you out at closing. PropertyLark will work with you to set a desired move-out date that may be different than the transaction closing date.
Depending on your homeownership situation (how much you still owe, if you own it outright, etc.), you may be able to work out a special financing arrangement with the seller. This could give you more flexibility in terms of when you need to move out. Some investors may even be willing to let you rent out the property after you sell it. You could stay in your home as a tenant as long as you can afford to pay the rent. If it is less than your current mortgage and property tax payments, this may be a better deal for you in the long run. Plus, you’ll likely have more flexibility to move out later if you find a better housing situation.
If you are hoping to stay in your house after you sell it, you will want to have this conversation with the real estate investors who are making offers. Some are looking to buy properties to fix up and then flip (resell for profit). Others may specifically be looking to utilize your house as a rental. Obviously, you’ll have better luck with a rental investor than one who is looking for a quick flip.
Understand Your Home Selling Options
When you are in a state of financial distress and you can no longer afford your home, you have to understand what options you might have. You will be limited because of your situation and every buyer will have different agendas. A quick cash sale to a real estate investor may be the best solution. Whether or not you’ll be able to stay in the home for any period after closing will depend on many factors that would have to be worked out with the actual buyer.
If you would like to get a fair cash offer on your house or you want to explore other financing options, contact PropertyLark today. Simply fill out the contact form on any page of our website to get started.