But first, remember that we are not credit professionals, lawyers, CPAs, or financial advisors. We are real estate investors with a social conscious. We want to help. But when it comes to credit repair, we only have one tool. You can sell us your house subject to the existing mortgage.
How does that help you?
If you’re behind on payments, we’ll catch them up. We may even be able to pay you some cash for the privilege. Once we take over the payments, we’ll make them on time every month, because our income depends on it. Over time, as we make the payments, your payment history improves and your credit score with it.
Your credit score improves precisely because the mortgage remains in your name.
As I mentioned before, we are investors who, besides redeveloping houses, own a portfolio of income properties. All of these properties are debt-financed. We are only able to make money by generating income from these properties and making payments to the banks on them. If we were to lose one of those properties to foreclosure, we wouldn’t make any money on it.
But what about that pesky “Due on Sale” clause?
Yes, most mortgages have a clause that says if the house is ever sold, the entire balance becomes due on the sale of the house. We have two answers to that objection.
First, it hardly ever happens. If the mortgage is current and the payments are being made, most banks don’t really care who is making the payments. But they become very interested when payments fall behind. I only know of one person who has ever had a bank exercise the Due on Sale clause.
Second, if it does happen, we’ll pay off the mortgage before the property goes into foreclosure. We have the resources to do so. Unfortunately, that would mean we couldn’t continue helping you repair your credit (beyond paying off the mortgage, which would help a lot).
So why don’t we just buy the house outright?
Again there are several reasons that benefit both of us.
- Doing so wouldn’t help you with your credit, and it costs you more out of pocket.
- We can usually pay you more for your house if we don’t have to obtain our own financing.
- It would cost us money out of pocket that we could use to renovate the house.
If you’re thinking about selling for any reason, let us know. If you’re behind on your payments or have a history of slow payments, please let us see what we can do to help. If you’re facing foreclosure, don’t wait another second. We’ll have to move very quickly. We’ll evaluate your situation and let you know if we can help.
Unfortunately, we can’t help everybody. But even if we can’t help, we may be able to refer you to someone who can.
Call 512.877.8707. Or email us today.