Brooks: Good morning, everyone. I hope you’re having a great start to your Thursday morning. Here in the tri-state, it is crisp and cool out this fall morning.
Anyway, I’m Brooks with YNP Home Solutions. Today we’re going to continue our series here of the top 10 questions that I’m asked on a regular basis when I go to meet with sellers at their property, or if I’m just on the phone with them. Today’s topic is “I owe back payments on the mortgage. Is it going to affect the process? Are you guys still able to purchase our house?”
The short answer to this question is simply yes, we can still purchase your house. Does it impact our decision making process? Absolutely. Can it prevent us from buying your house? Yes. Yes, we can buy it, but yes, it may also prevent us from doing so. Here’s why.
Let’s say that you are four months behind on a mortgage that is $1,000 a month. That’s $4,000 of back payments that are owed. If we’re going for a cash deal, that is definitely going to come into play, especially if your property needs repairs and it’s only worth say 80, you owe 4,000, and the property needs say $25,000 worth of repairs, we’re what? Where are we? Almost 30 grand. It’s getting very, very close. It definitely affects our ability to offer you all cash for sure.
If you’re that far behind, say four months, the bank will start a foreclosure process, and if they’ve already started that process, there is absolutely nothing that we can do at that point. If you are about to be behind on payments and you know that’s coming, don’t wait. Reach out right away. You get behind one or two months, start making some phone calls to either us or another company that can come and help you out. Don’t wait until you’re four, five months behind and the bank has the opportunity then to foreclose.
I hear it all the time, “I’m already in the foreclosure process,” and I’m like, “Well, how long have you known about this?” “Oh, six, seven months.” Well, don’t wait until it’s too late I guess is the point I’m trying to get across here.
If we’re going to structure a terms deal or you don’t need all the cash, you just need the back payments made, that doesn’t affect our decision making near as much. If you have a really nice home and for whatever reason maybe you lost your job, whatever the situation is, you weren’t able to pay that mortgage payment for the last three, four months, that doesn’t impact our decision making very much on a terms deal, meaning maybe you’re going to move out, we’re going to do a lease option on your property, or we’re going to take over the payments. We’ll make the back payments up, and we’re going to take it over, move forward. If we’re doing something like that, it really doesn’t have much impact on our decision making process. It’s still numbers-based. Obviously, we have to make a certain cash flow monthly or have some back end profits built in, but we can do a whole lot more with a nice home that doesn’t need a lot of repairs that has back payments owed.
If it’s a rental property in not such a nice neighborhood and you have back payments owed and it needs a lot or repairs, the options are limited greatly at that point. It’s either a cash deal or no deal usually.
Again, hey, I’m Brooks with YNP Home Solutions. Today is the third video, and it was “I’m behind on my monthly mortgage payments, are you still able to help us out?” Again, the answer is yes and some cases no. It just depends on how far along and how far behind you are and the condition of the property.
If you’re interested in selling a property in the tri-state area, Martinsburg and surrounding areas, Hagerstown surrounding areas, or Franklin County, Pennsylvania, Chambersburg, Waynesboro, make sure you reach out to YNP Home Solutions. You can find us on the web, www.ynphomesolutions.com You can give us a call directly, 240-244-3953. Thank you guys for watching. You can add comments below, share this video. Maybe you know someone who’s looking to sell. Be sure to reach out to us. Do not get behind on your payments. Call us first. Take care, guys. Have a great day. Look for the video tomorrow, and we’ll see you then. Thanks. Bye.