Can You Get A Mortgage On A Hoarder House

Published on August 26th, 2022

Every real estate professional will come across a hoarder house at some point in their career.

Hoarder houses, as we all know, frequently present excellent opportunities for real estate investors.

However, in a broader context, hoarder homes are frequently misunderstood.

Whether you want to flip a hoarder house, clean a hoarder house, have friends and family in a hoarder home situation, or are a professional organizer, you need to understand hoarder houses comprehensively.

What Does The Term "Hoarder Properties" Mean In Real Estate?

Hoarder's home refers to a property owned or occupied by an individual with compulsive hoarding disorder who has accumulated items to the point of causing extreme clutter, disarray, and troubling living conditions.

Real estate professionals are in the business of resolving property issues and assisting people in difficult situations.

They can buy distressed properties at a discount, employ a professional cleaning crew, and prepare the property for estate sales or rental. Some real estate investors even specialize in flipping hoarder houses.

10 Things To Consider Before Buying A Hoarder House

You Can Secure A Good Deal

When a hoarder still occupies a living space to buy, it might not be available to show prospective buyers, causing the property value to drop because it is less desirable for most traditional buyers. This is where buying a hoarder house can be less expensive — as long as the repairs budget isn't prohibitively expensive.

Securing a mortgage can be difficult

Obtaining a conventional mortgage for a hoarder house can be difficult because these homes frequently require extensive renovations. Banks may be hesitant to provide financing if they find it challenging to calculate the future fair market value after everything is fixed.

You might not realize it's a hoarder's house at first

Hoarder houses are rarely advertised as such, but specific key phrases in a listing can give you a hint. Look for a property that "needs TLC" or one that will be sold "as is."

It can be difficult to identify problems right away

If the massive clutter isn't cleared out before the property inspection, it may be tricky to see all potential issues. Structural damage can be challenging to detect when the hoarder property is completely filled.

You'll need to do a thorough cleaning process before moving in

Don't underestimate the amount of cleaning required in a hoarder's house. You'll probably need to hire hoarder house cleaning services to get rid of all the grime and dust that accumulated under all that stuff and a junk removal company to remove the excess trash.

Bringing in house flippers can help

There's no harm in asking for assistance. Although getting a hoarder house as is is deemed more complex than a typical house flip, bringing in professionals can help you get things moving.

You may be required to bring the hoarder house up to code

Hoarding disorder not only makes a mess, but it can also pose health hazards and fire hazards in the home. Deep cleaning a hoarder house may necessitate bringing the house up to code before making too many reservations.

This endeavor may cost more than you think

Even if you believe you know how much the house rehab budget will cost to fix the hoarder house before moving in, you may end up paying much more than you anticipated. Before beginning a home improvement project, do your research thoroughly.

Consider your real estate contract

Before you sign anything and move in, ensure everything is spelt out to your preference in your sale contract. This can include cleaning the hoarder house with professional cleaners before you begin renovating it.

It is not for everyone to move into a hoarder house



You're not buying a house; you're investing in a project. If this is your first time buying a home and you want to make the process as easy as possible, hoarder houses are probably not for you.

Hoarder house buyers and real estate investors looking for a good deal on distressed property are interested in learning how to find a hoarder house for sale.

There are various methods for locating hoarder houses for sale in your area, regardless of whether the hoarder's house is listed with a real estate agent.

Hoarder homes for sale can be found on:

• Craigslist
• Multiple Listing Services
• Wholesalers
• Estate sales

References:

https://www.cheatsheet.com/culture/things-you-need-to-consider-before-buying-a-hoarder-house.html/

https://www.realestateskills.com/blog/hoarder-house#hoarder%20real%20estate