Australians have faced various challenges over the past decade. While we have benefitted from low interest rates and easily obtainable loans, unforeseen circumstances like the COVID-19 pandemic created a big ripple in the pond. We have news of unemployment rates dropping [1]. However, on the flip side, we’re also seeing news like “Real wages cut by more than seven per cent in South Australia, sending the state’s living standards backwards” [2].
It’s great that statistically more people are employed but the reality is our wages have also decreased and coupled with increased interest rates and inflation, there are homeowners who may be facing the prospect of foreclosure or many who may need to consider options to make ends meet.
Consequences of a Foreclosure
A foreclosure can significantly impact your credit score, making future loan applications more difficult. Lenders may impose a waiting period before approving a new loan or require additional documentation for consideration.
In addition to the potential loss of your home, landlords or their agents often conduct credit checks on potential tenants. This means that a foreclosure can not only lead to losing your home, it could also make it challenging to secure rental accommodation if your credit rating is affected. A history of missed loan repayments could signal a risk of missed rental payments, which may be a concern for prospective landlords.
The Path to Foreclosure And The Challenges
As finances become strained, loan repayments become an increased burden for many homeowners and falling behind on loan repayments can quickly escalate into a situation of foreclosure.
For a homeowner, the thought of losing one’s home together with the pressures of financial instability can be overwhelming.
Selling Property as An Option
To avoid foreclosure, selling the property is generally the go to option as the property is usually the asset securing the loan. It might sound as simple as selling and paying off debt but quite often when this stage is reached, there is pressure to sell your house quickly and the sale process can be quite daunting.
Quite often homes have maintenance and presentation issues that need to be addressed to sell to the public. Then there’s the process of finding a good agent and going through the whole process of listing, advertising and open inspections which adds time and effort to the process while trying to sell quickly. There is no guarantee to meet agreed timelines.
How Cash Home Buying Companies Help
An option available for property owners facing foreclosure is to sell the property to a cash home buying company. Home buying companies specialise in purchasing homes quickly and for cash, providing homeowners with a way to offload their property without the hassle of traditional real estate transactions. This option offers several distinct advantages:Speed and Convenience
Cash home buying companies streamline the selling process, often closing deals within a matter of days. This quick turnaround is particularly beneficial for homeowners facing imminent foreclosure, offering them a swift resolution to their financial predicament.
As-Is Sales
Unlike conventional home sales that typically require repairs and renovations to attract buyers, cash home buying companies purchase properties in their current condition. This eliminates the need for costly upgrades and allows homeowners to sell their homes as-is, regardless of their condition saving time, money and avoiding the hassles of having to prepare the property for sale.Certainty and Reliability
With cash offers and expedited transactions, homeowners can rely on cash home buying companies to provide a guaranteed sale, sparing them the uncertainty and anxiety associated with traditional real estate transactions.Avoiding Foreclosure
By selling property to a cash home buying company, homeowners can avoid the detrimental consequences of foreclosure, potentially preserving their credit rating and mitigating long-term financial repercussions.
If you are in a position that you need to sell your home quickly, get in touch with us at Sell My Home Today!
[1] Darcy Matthews (March 21, 2024)
Unemployment drops to record low in South Australia
South Australian Business Chamber
https://sabusinesschamber.com.au/news/unemployment-rates-hit-six-month-low
[2] Paul Starick (March 27, 2024)
Real wages cut by more than seven per cent in South Australia, sending the state’s living standards backwards
The Advertiser