Real Estate Company Looks to Help Homeowners Avoid Foreclosure
For many people, the American dream consists of owning a home, living a prosperous life and raising a family. But the current economic climate has thwarted an individual’s plan to fulfill one major aspect in order to live this dream—owning a home.
Due to financial institutions’ mortgage practices where they have taken advantage of a homeowner’s distressed situation, it is becoming harder for first-time homebuyers to acquire a real estate property.
FreeDistress.com is a new real estate investment company that was created to help homeowners in distressed situations avoid foreclosures.
Using a team of business professionals from lawyers to CPAs, FreeDistress will guide a homeowner through the process of staying in their home and not having to uproot their family by negotiating with banks to modify a mortgage.
All it takes for distressed owners of residential and commercial properties to participate in what the company has to offer is to go to the company’s website and fill out the necessary application. After an owner fills out the necessary paperwork, the company will review it and request various materials, including copies of the existing mortgage documentation and a bank authorization letter which consents for FreeDistress to discuss the client’s existing mortgage debt with the applicable financial lending entity.
The New York-based fund attempts to purchase the client’s real estate from the financial lending entity in a “short sale” scenario by negotiating a buyout with the bank. Once a buyout is arranged, the fund will purchase the home and rent it back to the client at a reduced rate lowering their monthly payments.
The company said it attempts to acquire the property at a purchase price that is approximately 50% of the original monthly mortgage obligation with a purchase option. This purchase option is exercisable in a time period of five to 10 years, as decided by the client while working with the fund, which will be the original price a homeowner paid for the property.
“FreeDistress has brought a breath of fresh air and glimmer of hope to millions of American homeowners across the nation,” the company said in a press release. “Any distressed situation involves hard times and heart-touching situations, however, these circumstances can only be overcome with viable options. FreeDistress is offering such viable options to the American people.”