Cash-Fast Offers: Tips for Buying or Selling Real Estate Quickly

Cash-fast offers refers to obtaining an offer of cash for real estate in order to close the sale quickly. Homeowners need to sell their homes fast for various reasons. These days, the most common reason is to stop foreclosure. Even though the U.S. government is developing strategies to assist homeowners unable to make their mortgage payments, help cannot arrive soon enough for many.

Some lenders allow cash fast offers to satisfy short sale transactions. With the ever-growing number of foreclosures, lenders are now being forced to engage in short sales and accept less than is owed on the mortgage loan.

Short sales do not allow the borrower to retain their home. Instead, they are responsible for locating a qualified buyer within a set amount of time. Short sales require lender approval and are typically negotiated through the bank's loss mitigation department.

There are two types of short sales - Payment in Full without Pursuit of Deficiency Judgment and Deficiency Judgment. The latter should be avoided at all costs. When lenders require a Deficiency Judgment, the borrower is responsible for paying the difference between the sale price and balance of the mortgage note.

If a borrower's note balance is $130,000 and he obtains a cash fast offer of $100,000, a deficiency judgment will be issued for the $30,000 difference. Most people do not have access to $30k and the judgment could take years to repay.

Another reason people need to sell their house quickly stems from probate. When a person dies all assets held in their estate must undergo the probate process. Probate is notorious for dragging on for months, or even years. Experts state the average probate case takes three years to settle.

During probate, the estate executor is responsible for maintaining the home. If an outstanding mortgage exists the estate must continue making payments. Property insurance and taxes must be paid, as well as repairs and maintenance.

Many estates do not possess sufficient funds to pay real estate related expenses. Probate executors can sell the property to ease financial burdens. Oftentimes, probate real estate is sold for pennies on the dollar.

Some homeowners need to sell their home quickly due to change or relocation of employment. Others own rental properties or vacation homes they can no longer afford to maintain. Many own the property outright and choose to sell it to eliminate responsibilities associated with the property. By selling it below market value they increase their ability to locate qualified buyers.

With today's credit crisis, many private investors are making cash fast offers. Doing so gives them additional room for negotiation and offers the seller incentive. Cash deals can be closed in days, whereas buyers who must obtain traditional financing can prolong the sale for weeks. In many instances, buyers discover they aren't qualified for lending and the homeowner must start back at square one.

In today's ludicrous real estate market, cash is still king. Investors who buy homes with cash have greater bargaining power, while offering financial relief to sellers needing to liquidate real estate holdings quickly.