Special Circumstances LLC is a private company that buys houses from owners who have fallen behind on the mortgage, in Yuma County and Maricopa County, Arizona, and Harris County, Texas. We are not a lender, a law firm, a real estate brokerage, a housing counselor or a government agency.
We take title to the house while the existing mortgage stays in place. We pay the missed payments, late fees and trustee costs to bring the loan current, pay the owner cash for their equity at closing, and then make the monthly payments. The loan is brought current; it is not paid off, and it stays in the seller's name.
A trustee's sale is cancelled when the loan is reinstated, which happens only if the purchase closes before the deadline. In Arizona the loan can be reinstated until 5:00 p.m. on the last business day before the sale. We cannot promise a sale will be stopped unless we close.
The amount is set in a written offer and paid through a licensed title and escrow company at closing. The owner pays no commissions and no closing costs. The amount depends on the home's value, the loan balance and how far behind the loan is.
Sometimes. In a foreclosure or a short sale the owner usually receives nothing. Listing with an agent can net more when there is substantial equity and enough time before the sale date, because the house sells at full market price. A subject-to sale tends to make sense when equity is thin, time is short, or commissions and fees would use up most of the proceeds. Our comparison page shows the numbers side by side.
The late payments already reported stay on the credit report. Because the loan is brought current and stays open, no completed foreclosure is reported, and on-time payments are reported from then on. If the buyer ever paid late, it would be reported on the seller's credit, because the loan is still in the seller's name.
Usually not for about twelve months, whether or not they sell, because lenders want a clean payment history after late payments. After about twelve months of documented on-time payments by the buyer, many lenders will exclude the old loan from the seller's debt-to-income ratio. That is the new lender's decision and is not guaranteed. A VA borrower's entitlement stays tied to the loan until it is paid off or formally assumed.
The mortgage remains the seller's legal obligation, and the lender has the right to call the loan due because of the transfer. We disclose both in writing before the contract is signed, close through a title company, and make payments through a third-party loan servicing company so there is a record of every payment.
Yes. Free HUD-approved housing counseling is available at 888-995-4673, and an attorney can review any offer, including ours.
Call or text (888) 281-7355. Spanish is available. You can also ask about any address at sellbeforethesale.com/offer.
Call us. No cost and no obligation.