They Buy For Cash

Ms. Lank: We are looking to sell our house, but want/need out quickly due to some problems. At this point, we don't care to make any money, just want our current mortgage to be paid off. What do you think about those companies that buy houses for cash without having to go through Realtors and long, drawn-out closing process? -- J.A

Answer: Those companies buy at a wholesale price, hoping to re-sell at retail later. While they're holding the house they have expenses for taxes, insurance, utilities, perhaps repairs, perhaps sales agent commissions, lost income from the money they paid you and the legal costs of buying and selling.

If they don't add in something for risk and a margin for profit, why would they do it at all? So you can expect them to offer something substantially below true market value. If that's enough to pay off your loan and you really want an immediate deal, no harm in it. But if you can afford to wait a bit, you'll come out much better by putting the place on the open market in the normal way. Your house is worth more to someone who's going to live in it.

For a prompt sale, set a bargain price that should attract buyers.

Appraiser Won't Tell

Dear Edith: I am refinancing my conventional home loan to an FHA loan. The appraiser who came by to appraise the property told me she can't reveal the value of the property to me because the loan is an FHA loan. Do you know if that is true? -- H.H.

Answer: You were misinformed, or perhaps you misunderstood. You are entitled to receive a written copy of any appraisal you pay for, no matter what kind of mortgage is involved. An appraiser wouldn't give you an oral opinion while doing the evaluation, though.

Is It Truly Sold

Dear Edith: I thought I sold my home to a certain company but recently realized that all I did was transfer the deed to them. The mortgage is still in my name! How can I "truly" sell my home? -- Via e-mail

Answer: I'm afraid you did truly sell your home. What you didn't do was get rid of responsibility for the mortgage. That's a separate thing entirely.

It's time to contact the state attorney general's office and file a complaint. I wouldn't be surprised if they've already heard about that company.

Foreclosure Threatened Continued...