First, put it all behind you and begin with a fresh new start. As with other past stumbling blocks in your life, you must learn from them and move forward. Write down what caused you to get in that situation, whether it was from the housing market, a loan you could not possibly have fulfilled, overspending, not sticking to a budget, making poor decisions, etc. This will give you peace of mind and help you avoid the same scenario again.

The next step is to create a budget. It should be realistic and one you can stick to. Set financial goals and develop a path to reach them. In order to reach these goals, you may have to give up some of the extras in your life. Create a chart to track cash flow coming in and going out. One of the biggest challenges facing you in the coming months will be sticking to your budget!

If you are struggling to pay your bills, it may be advisable to seek help from a financial adviser. They might be able to negotiate a repayment plan for debts that you owe. This will probably have a negative effect on your credit report, but it is better than bankruptcy.

You need somewhere to live, so consider renting a place while you focus on building your credit and cash resources. Generally you need to wait 24-36 months from your foreclosure date before considering purchasing a home and acquiring financing again.

A rent to own or lease option is another consideration. This will give you the ability to gain equity in the home and build a payment history that will help in the future with credit reference.

During this rebuilding time in your life, you must remember to live within your means. Adjust your spending according to your income, and save 10 percent of what you make. This will prevent you from slipping backwards in your credit rating again.

If you have cut back on your expenses and are still finding it difficult to pay your bills, consider ways to earn more money. If you are able, consider a second job. If you have other talents, think about doing freelance work. Check with your employer for extra shifts that pay overtime.

If you are you are having financial problems that lead to foreclosure or short sale, your credit report will tell the story long after you have moved on. What is the impact? Is there a difference in the impact of foreclosure vs. a short sale when you sell your home?

Recently, FICO, the company that produces the credit score used by many lenders to evaluate creditworthiness, offered some surprising answers to these questions – and added some new insights as well.

Bad news for high scorers

First, FICO sees little difference between a foreclosure and short sale. In either case, the lender received less than the balance of the loan, so the defaulting homeowner might lose from 85 to 160 points from his credit score. Why the range? The steepness of the fall depends on what the score was to start out. High scores lost more points than ones that started out low. A high 780 score would lose the 160 points, while a mid-range score of 720 would lose 130-150 points, and the low score of 680 would lose “only” 85-105 points.

The same pattern of dinging high credit scores more heavily than low ones prevails with late payments too. When 30 days late, a high score might lose 90-110 points, plus an extra 20 if they were 90 days late. Low scorers are zapped 60-80 points whether they were late by 30 days or 90.

Here’s the kicker. A borrower with a high score will not recover from a late payment for three years in comparison to only nine months for a someone with a lower credit score.

This information seems at odds with the advice of most housing counselors to pursue a short sale rather than letting the house go into foreclosure. FICO says that someone who underwent a short sale would be better off only if the lender did not report the shortfall – a difference of only 35 points.

So, why pursue a short sale instead of a foreclosure?

When you go to sell a home, a short sale offers more control over the process. They may feel depressed that they have to give up the house, but they have more of a sense of closure on a bad situation. They can plan their future more easily than with a foreclosure.

When they go to buy another home, they should be able to do so in 24 months at a good interest rate. This assumes that they have kept their payments current after the short sale.

Though most analysts claim that either default impacts the report the same, there is a difference by state as to the impact. Borrowers from some states have reported hits up to 300 points from foreclosures and 100 points from short sales.

With a short sale, the homeowner remains with the property until closing, just as in a normal sale. As a result, the home is not left vacant for long periods of time, which keeps the property values intact and reduces neighborhood vacancy rates. The lender does have to maintain the property or see the value further lessened by vandalism and theft.

Banks benefit too

The lender accepts less than loan value with a short sale, but is spared the extra legal costs of pursuing a foreclosure in court. According the Joint Economic Committee of Congress, the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300; the figures for the cost of a short sale are not given, but the major costs include processing and loss on the loan, without the court costs and property maintenance.

Though both short sale and foreclosures have roughly the same impact on credit scores, a short sale has many advantages both to the seller and the lender when selling a home. Since short sales are a remedy that costs lenders less than foreclosure, some lenders may look more kindly on short sales. As short sale is considered by some to be the best way to help our country get past the housing crisis; a time may come when this philosophy might be reflected in the scores themselves.

Have you experienced a short sale or foreclosure? If so, what advice can you offer based upon your experience?
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Are you ready to sell your home fast? Call us today at 1-888-835-4758 or contact us to sell a home in hours from Express Homebuyers.

What are the steps to prevent foreclosure?

Seek help early – Avoiding the problem will not make it go away. The earlier you seek help, the more options you have.

Face the facts – Open your mail and respond to correspondence from your lender. If you are in a home that you can no longer afford, realistically assess whether you need to move on.

Muster your resources – Sell what don’t need that has value–a car, jewelry, household goods, etc. Try to find a second job, prioritize your spending, and see whether your family or friends will lend you money. This may seem obvious, but your effort will show your good faith to the lender.

Contact your lender – If you alert your lender of a problem, they might have programs to help, including “forbearance” (that gives you time to make up the payment, forgiveness of payment, a repayment plan, or loan notification).

Consider outside help – Housing counselors approved by HUD can review your situation at no cost, help you consider your options, and even negotiate with your lender. They can direct you to federal, state, or local programs. You can get started by calling the Homeowner’s HOPE™ Hotline at 888-995-HOPE and tell them “I need help selling my home and avoiding foreclosure!”

Look for programs that can help. Making Home Affordable, the main federal attempt to prevent foreclosure, may be the first program that comes to mind to help you obtain a loan modification if you meet the criteria. Since its inception in 2009, the program has expanded. It can address second mortgages, underwater situations, and more. Within D.C , the Homesavers Program can help unemployed homeowners. Maryland has its Hope Initiative, while Virginia has an Emergency Homeowners Loan Program, among other services.

Avoid scammers – Housing counseling to avoid foreclosure is free, but many private companies have sprung up claiming they can help you. Often these companies request high upfront fees, may take the title to your home, and don’t do as they promise. Always work through a certified housing counselor.

Need or want to move on? Here are your alternatives:

Selling my home – If your home is in good condition, and your Realtor® feels that it would command a good price in view of comparative sales figures in the neighborhood, you might consider trying a conventional sale. This might net you enough money to pay back any past debt to your lender or at least relieve you of a payment that is too high.

Consider a short sale – If your home is worth less than you owe, a short sale might be the way to go if your lender will negotiate. This will impact your credit, but not as much as a foreclosure. The process also offers you more control over your situation and saves your lender the much-higher costs of foreclosure.

Consider a deed in lieu – You can also deed the home back to the lender in return for cancellation of the mortgage. The lender will cancel the foreclosure and might even let you stay in the home until you find a place to move.

Sell my home to a third party – Companies that buy houses are equipped to move quickly to prevent your home from slipping into foreclosure.

With the help of your counselor, you may realize that you are too far behind on your payments, the home needs too much work, the payments are too high, or your home has lost too much value. Your housing counselor can help you make the transition, but you will have to give up your home. This may be hard, but will stop the foreclosure and you will then be able to move on to the next stage of your life.

If you have worked with a housing counselor, what was your experience?
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I want to sell my house fast. I can call EHB today at 1-888-835-4758 or tell us “I need help selling my home!” in hours from Express Homebuyers.

New groups of people are affected. The mortgage crisis started when sub-prime mortgages crashed, but now prime borrowers are increasing as unemployment spreads.  Currently, unemployment is at 10% nationwide.

There are regional differences. Nevada, Florida, Arizona, and California, where the real estate boom was the greatest, still have skyrocketing foreclosure rates, and represent 42% of all foreclosures.  Florida alone has a 25% rate.

There is a Shadow Inventory. Large stocks of foreclosed homes – up to six million of them -have yet to be put on the market by banks.  Considering that foreclosures are still adding to the numbers, it will be several years before housing inventories are stable.

Some rescue programs are mis-targeted. Nearly 700,000 borrowers are in trial loan modification programs as a result of the Making Home Affordable program, but many thousands who are unemployed or are in negative situations don’t qualify.  The programs require that you have enough income to pay a modified mortgage and apply only to people whose “under water status “ does not exceed 125% of the loan value.

Some programs fail (and may be doomed to). The rescue programs don’t go far enough.  The payments after modification are still too high for many people, so they default later rather than sooner.  Also, the modification programs often lower interest and lengthen the time but do not decrease the principle.  People are left with the sense they are paying longer for an overpriced house.

Some well-intentioned programs may elongate the problem. Current programs that keep homeowners in their homes as renters once they surrender their deeds may be creative and compassionate, but also may delay the inevitable: the home must be sold at a later date.

Express Homebuyers can buy your home for cash.  Check our list of frequently asked questions to see how this can help you, and then call 877-804-3252 to get started.

Not so fast. A growing trend around the country is for the bank to foreclosure but not take possession of the property.  Banks are now walking away from homes they own and taking no steps to evict the former owners.  This means people can keep living there, basically rent free until the bank shows up to claim their property.  When the house is worth less than the cost of foreclosing, banks basically have little or no value to return to their investors.  They may not complete the foreclosure.

Having access to a free house sounds like a great deal, but “free” does not mean “trouble free.” You do not get a formal notice from the bank that says “We give up, the house is yours.”  Rather, they just walk away, leaving you in a state of uncertainly as to if and when they will take over the property.  In the future the lender may restart the foreclosure; unless the homeowners have been squirreling away mortgage payments in the interim, they may have to go through the process again and ultimately be evicted.  If the bank sells the loan to a collection agency, suddenly, you may be harassed for the money.

With a lien on the house, you won’t be able to sell it, so you can’t really move on. With the title still in your name, the city can hold you responsible for the taxes, as well as code violations and upkeep – even if you move out.  The city could take the house or hold you liable for violations.

What should you do if the bank walks away?  You may temporarily not have to pay rent, but your goal is to resolve the situation. These days, even some lawyers are scratching their heads about how to resolve the legal issues that result from bank walkaways. Your options?  Here are a few:

• Stay there, but try to put your mortgage payments in an escrow account.  You can use this as sign of good faith if the bank later tries to foreclose and you want to retain the home.  In the worse case, you will have some money built up to get you settled elsewhere.
• Regardless of whether you want to stay or go, stay in touch with bank of loan servicer to get an inkling of what is happening.
• Keep trying to work with the bank to see if you can get a loan modification or short sale.  Make sure you put communication in writing and note the date and name of anyone you speak to, preferably in the presence of a witness.
• Think about bankruptcy, which will stop the foreclosure.
• Get help from a HUD approved housing counselor or from a lawyer.  Even if you no longer want the property, you need help bringing the situation to a close.

If you find yourself heading for foreclosure, the time to act is now.  There is free help available to help you ponder your options, especially if you would like to stay in the home.  

Express Homebuyers can buy your house for cash.  Check our list of frequently asked questions to see how this can help you, and then call 877-804-3252 to get started.

The Consumer Credit Counseling Service (CCCS) of Greater Atlanta attributes this reluctance to get help to fear or confusion, which leads to inaction at the very point when they still have time to get help. What are some of these common fears?

If I let the mortgage company know I am having trouble, they will foreclosure more quickly.

Wrong!  Letting your mortgage company know that there is a problem is the first step to getting help.  If the bank sees you are taking steps to catch up, they may be more willing to help you.

If my bank has already turned me down for a loan modification, there is no point in contacting a counseling agency.

Wrong!  If you were turned down, here might have been a processing error or your lender might not have been willing to comply with the terms of the Making Home Affordable program.  Your income might not have proved sufficient or your paperwork may not have been completed correctly.  A counselor could check this out for you and find other alternatives.

Other people will judge me for seeking help.

Wrong.  Well, some people will always judge, but in these times, many people need help.  If you seek help when you need it, you may avoid foreclosure and serve as an example to others.

I can’t get help till I’m down to my last dime.

Wrong!  If you have more resources, you have more options.  It’s best to seek help as soon as you know you’re headed for trouble,

My situation is hopeless.

Many people facing foreclosure feel like this.  Even if your home cannot be saved from foreclosure, a housing counselor can help you get your finances together so you can move on.

I will have to pay a large upfront fee.

Wrong!  Some companies do charge fees, but many are scams.  There are plenty of non-profit housing agencies out here who will help you at no charge.

Unfortunately, not all homes can be saved.  However, early contact with a housing counselor could help you evaluate your situation.  Sometimes, moving on can be the best choice, but even that should not be done out of fear.

Need an area housing counselor?  Looking for a stress free alternative?    The DC-area HUD-approved counselors can help you.

Express Homebuyers can buy your home for cash.  Check our list of frequently asked questions to see how this can help you, and then call 877-804-3252 to get started.

If you could get that knock on the door soon, Express Homebuyers offers an alternative.  We will buy your home and guarantee completion of the process within a couple weeks.  We tell you up front what we will pay; if you agree, you are on the way to a quick resolution.  We even offer you a $2,500 upfront advance you can use to begin your fresh start.  Call us at 1-877-804-5252 or check out our Express Homebuyers website for more details.

Now! Common wisdom in a government program

On November 5, the FHA announced the Deed for Lease (D4L) program, which would allow qualifying owners on the brink of foreclosure to lease the property for a year or more after turning in the deed.  The program might even be available to tenants.  To qualify, the homeowner must be unable to have his loan modified and must be able to pay market value rent of no more than 31% of the household income.  Further, he must keep the property in good condition, have rental insurance if he has pets, and must live in the home as a primary residence.

A benefit for troubled homeowners

For many, it will reduce their payments to 31% of their income.  If they had other mortgages on the property, they would be released from those. The tradeoff is that they are no longer homeowners, but that financial position will disappear with less damage to the person’s credit report and less family and neighborhood disruption.  Although the program may offer only temporary relief–the lease is initially for one year–that time allows the former homeowner to get his finances back in order and perhaps plan for the future without the stress of foreclosure looming. (Read more facts about Deed for Lease here.)

For the lender, D4L eliminates many of the costs of foreclosure, provides rental income, and preserves the property’s condition.  Banks may not want to be landlords any more than they want foreclosed properties, but D4L is a reasonable solution that will pay off for them if housing prices rebound and lenders are able to sell the homes for more than the original price.

Facing possible foreclosure?

Is Deed for Lease a good idea for you?  If you want to stay in your home and can afford the new payment, D4L might be ideal.  However if you are unemployed or are living in a home too expensive for you, you will probably fail the income test.

Express Homebuyers offers another solution that might work even better for you.  We buy houses for cash, clear the liens, and wrap up the transaction within a couple weeks.  We will even provide you with a cash advance to help you get settled in a new place.

Our motto is We Sell Your Home Fast. You can put this motto into action today by contacting Express Homebuyers at 1-877-804-5252.  Want more information on the process before you make the call? Read this list of frequently asked questions to prepare you to make the decision that gives you a fresh start.

To prevent these types of losses, many banks throughout the country have started to offer owners or even tenants “cash for keys,” a cash payment in exchange for vacating the property within a certain number of days and leaving it in good condition.  Typically, the bank will offer $500 or more on the condition that the terms are met.  The idea is that the money will to be used for expenses such as security deposits, movers, rental trucks, utility deposits, and temporary living expenses.  This money, though hardly adequate to resettle a displaced family, at least offers some help and incentive to move out and move on without leaving the house in shambles.

Cash for keys was an unpublicized bank program for many years, available only to those who asked.  Now, banks are more forthright about offering it to people.  Banks have found this is cost-effective, compared to eviction court fees or repair costs.  Though cash for keys is intended to be a win-win proposition, the reaction of recipients is mixed.  Glad to get something, many people feel that the small amount offered is hardly enough to help them transition to a new home, much less dull their pain.  Without threatening, owner or tenants can certainly negotiate for a more helpful amount.

Recently, in the latest revision of the Making Home Affordable program, the Treasury Department offers $1,500 cash to homeowners to move on and $1,000 to loan servicers if they forgive mortgage debt.  This is basically a cash for keys approach to a problem, which should help homeowners and help banks to regain property is salable condition.

There is a simpler way to get help to move on without foreclosure.  Express Homebuyers will buy your home on the spot and offer you a cash advance of $2,500 to aid your moving and resettlement.  Rather than dragging out your situation, we will also get your deal done within two weeks through our simple five-step process.

Get closure, not foreclosure!  Sell your house fast. For Cash. Contact Express Homebuyers today at 1-877-804-5252 to get the ball rolling. We buy houses for cash, we’re Better Business Bureau accredited, and we’ve been doing it right since 2003.

Your personal feelings… Foreclosure might be a business decision for your lender, but for you and your family, leaving your home usually means leaving your neighborhood and your lifestyle.  Adults tend to feel depressed, disappointed, and angry.  For kids, this often means being uprooted from school mid-year and having to make friends and catch up in a new academic environment.  If the financial strains leading up to foreclosure have broken up the marriage, both children and adults have an extra layer of hurt and disappointment to deal with.

Your new residence… Maybe your game plan is to move back home with mom and dad after you lose a home, but if you want to rent somewhere, you’ll need to find a place to live where the landlord is sympathetic to your situation.  If you are jobless, this poses an obvious impediment.  Assuming you have enough income to pay the rent, you may have to come up with a larger-than-normal deposit to put the landlord’s concerns to rest.  Getting the deposit together, often a challenge for people anyway, is more difficult when you are cash strapped after a foreclosure.

Credit score implications… You are probably aware that your credit score will take a hit with foreclosure on your record, but be forewarned that other creditors may raise you rates, even if you are up to date with them.  Many people tend to be behind in many accounts, especially if they have let other things go in an attempt to cover the mortgage.  The resulting low credit score may make it hard to buy a car or get reasonable credit down the line.

Future home buying… Buying a home in the future will be more difficult with a foreclosure on your record.  Even if you have an otherwise good credit record, you will probably have to wait five years to be eligible for a Fannie Mae backed loan or three years for an FHA backed one. In either case, you might be able to speed things up if you can prove that there were extenuating circumstances that lead to the foreclosure.  You will still have to prove that you have been on time with things since the foreclosure.

Job consequences… These days, many employers get credit checks on new employees. If you are applying for position where you will be handling money, you might be turned down for the job based on your credit history.  Even for a sales job, the employer might think you’ll be under too much pressure.  You should address the subject in an interview to negate employer concerns. There are laws that limit the types of checks employers can do, but if don’t get the job after you’ve had a foreclosure, it’s hard to prove that the credit report was the reason you didn’t get it.

You may still owe… Once your home has been foreclosed on (or you’ve walked away) the lender may bill you for taxes on the amount they couldn’t recover from the sale, while the IRS may hold you responsible for debt on the property that was forgiven.  Recent laws may give you some relief but make sure to check with a tax adviser to gauge your liability.

When foreclosure looms, the best bet is to assess the situation and determine how to gain control of it.  For some people, this may mean talking to the lender or a financial counselor to negotiate a loan modification. For others, it may mean a short sale, where leaving the property will be more on your terms. There is another way:  you can sell your home outright for cash to a reputable firm.

Express Homebuyers, which has operated in the DC area since 2003, can make you an offer, give you an advance so you can find a new home, and wrap up the sale within a couple weeks. To explore this exciting option, which can limit the impact of financial turmoil, call 1-(877) 907-3232 or email info@expresshomebuyers.com.  We can answer your questions about a way to leave your troubled financial past behind you and move on to a better life.

Being in this situation is not what you anticipated when you scraped and saved for your home. However, if you can adopt the philosophy that homes and material things are replaceable, you can get through the situation and aim for a fresh start.  Short sales, foreclosure, or  bankruptcy can provide this. What you should aim for is the solution that has the smallest long term impact on your credit score and the greatest chance for you to move onto the next step with dignity.

Preserving your credit score is important. Not only is a good credit score necessary to get future credit and get it at a decent rate, it may impact your ability to rent or buy a house, get insurance, and even get a job. If you fall on hard times, you will take an inevitable hit.  Your concern should be with preserving your score as best you can. The means that in order of the least damage to your credit, it is short sale, foreclosure, and bankruptcy.

Short sale: If your home’s value is not enough to pay off the mortgage, you could ask your lender to authorize a short sale where you can sell the home for less than you owe.  This approach saves the lender time and money compared to a foreclosure and allows you have more time to plan your nest move as the process takes a while. You will lose 80 to 100 points on your credit request, but within 18 months the impact on your score should lessen.

Foreclosure: When the bank takes your home, you lose 200 to 300 points on score and can’t buy another home for at least three years.  Given the large numbers of foreclosures these days, foreclosure might have a relatively small social stigma and economic impact over time.

Bankruptcy: Bankruptcy will remove your debts or allow you to repay them over time, depending on whether you file Chapter 7 or 13 bankruptcy.  The number of points you lose depends on what your credit score was before you filed, but the event will stay on your record from 7 to 10 years. Despite the effect on your credit rating, this may still be the best choice if you are burdened down with a lot of other debts besides your mortgage.

Any of these methods can offer a fresh start to you if you are in trouble.  If you want to sell your home now, Express Home Buyers can offer exciting alternatives. Whether you are in financial trouble, face foreclosure, have a property that needs a lot of work, or have an inherited house, we can sell your house fast. Because with us, it’s Guaranteed2Sell.

What’s a Short Sale?

Let’s assume you understand the basics of the concept, and are familiar with the broad strokes: basically, a short sale is what occurs when a lender agrees to accept less than the amount owed against a home because there is no longer enough equity to sell and pay all costs of sale.  Put simply, if your payments are in arrears and it’s looking more and more like the lender won’t be able to recoup the full cost of the home, a short sale may be their best way of their getting something rather than nothing.

It Isn’t Perfect, But…

There’s no question that a short sale is far from an ideal outcome for anyone who owns a home.  If you find yourself in dire straits with either foreclosure or a short sale looming as your only two options, which do you choose?  Consider which does more damage to your credit?  Opinions on this topic vary, but the bottom line is, they both do a lot of harm.  Foreclosure typically knocks between 200 and 300 points off your score, while short sales have been known to trim your credit rating by anywhere from 100 to 300 points.  Bottom line: your credit will suffer either way, although you have a slightly better chance of losing less money and credit rating if you work with a real estate agent and negotiate a short sale.

It’s a Way to Protect Your Credit Rating.

We understand how hard it is for anyone to be facing these possibilities; if you’d like to know more about this process or have any other real estate questions answered, please don’t hesitate to reach out to us. Express Realty Services has a fully-staffed short sale department; we can help you work through every facet of your short-sale negotiation.

Important Steps to Avoid Foreclosure at All Costs

Let’s start by talking over a few ways to avoid having this happen to you.  We already wrote a bit about short sales, and their effect on your rating. Here are some other ways you can try to keep the possibility of foreclosure from becoming a reality.  The first and most basic is to keep in touch with your lender.  No one likes hearing bad news, and it can be easier to let unopened bills and late notices pile up in your trash than deal with the reality of your situation.  If you find yourself falling behind on your payments, contact your lender and discuss the possibility of modifying your loan (and negotiating one with a lower interest rate, for example).  Occasionally, you can ask for forbearance, a period during which the lender agrees to let you temporarily stop making payments until you have your situation sorted out.
Suppose you decide instead to move, most likely into a more affordable home or a rented apartment.  In the event that the amount of your mortgage exceeds the value of the house, consider a short sale.  Sometimes, you can simply turn your home over to the lender and cancel your remaining debt (a process called a “deed in lieu of foreclosure”), but like all of your other options if you’re at this critical stage, think it over carefully.

Whatever You Do, Act Now—Your Situation Won’t Fix Itself

Whatever your situation or plan for the future, we wish you the best of luck, and are always here to take any and all questions you may have.

Some more numbers, and a bold claim

On the sales side of our operation, we continue to unload homes 3 times faster than the market average. Want some real numbers?  The last 3 homes we sold lasted 27, 7 and 0 days on the market, respectively (that “0” is not a typo; we actually sold the home before it even made it to listing). As the country’s largest home buying firm and the 8th best selling team in the Keller Williams organization nationwide, we are your go-to source for the best real estate deals in the DC Metro area, a region that includes Maryland and Northern Virginia. Because we work closely with the FDIC, Fannie Mae, Countrywide, Wells Fargo, Indy Mac and many others, we ensure that our level of access to foreclosed homes and REO’s is second to none. You can view our up-to-date inventory at www.ExpressHomebuyers.com/email and www.ExpressRs.com. We’ve said it before in this blog, but here it is again: now is the best time to buy a home in the next 30 years.  If you’d like to hear more about why we this, or if you’re interested in either seeing the homes we have available or selling one of your own, don’t hesitate to reach out to us.

Recently, a blog on our work at Illinois Avenue caught our eye, and we posted this response (You can read the original at Concrete Jungle). Our response is listed here:

“Thanks for your post. We are always happy to clarify our business.

Couple of things. First, it’s easy to take the hard numbers at the beginning and end of a transaction and question the spread and the profit – particularly if one wants to question the profit makers. It is true express Homebuyers purchased the Illinois Avenue property shown here for $150,000, a price we determined after investigating the overall condition of the property, and what it would take to renovate it to our standards—which are top-of-the-market.

In terms of this property, we judged the total cost to renovate it to our standards could be well over $125 to $150 thousand dollars. Just this alone would justify a price equal to similar properties in the neighborhood. Atop our costs of renovation we have to add marketing, listing, commission for agents and a host of other small costs that whittle away the remaining margin.

Finally, the $374,955 is the asking price. It would be ideal if it sells for that, but like all other properties, our listed price survives or dies at the very real hands of the market.

Secondly, we don’t necessarily favor the term “flipping” when it comes to our work. House flippers notoriously buy properties cheap, perform minimal—if any –repair, and try to sell the property as quickly as they can. Our mission remains to add value to all the properties we sell and, in the process, help the individuals who need to sell their properties get a quick solution.

Harold, Express Homebuyers”

It’s not a flea market.

If you’ve ever gone to a street sale or marketplace, you know that haggling is part of the process.  The selling price is whatever you can get it lowered to, and half the fun is low-balling until you and the vendor reach an agreement.  This is not how the home market works.  Drastically overpricing a house isn’t a good policy; potential buyers will be scared off, and will skip over your listing until they find something within their price range.  Your best bet is to determine its market value, and set the price close to this number.

Know your surroundings.

Another good move is to take into account what comparable homes in the neighborhood have sold (or are selling) for; if the other two story townhouse across the street has already been appraised and priced, it might not be a good idea to list yours on the market for twice as much.  Still, use common sense when determining a price.  If your home is in better condition or has features that many of the other homes in the area lack, don’t be afraid to set the bar higher.  Hiring a professional can be useful in this case because they can provide you with a CMA, or Comparative Market Analysis, which evaluates your home against others in the area.

As you are probably well aware, we are the largest homebuying service in the greater DC area.  We buy and sell hundreds of homes every year, and can save you the time, frustration and cost of shopping your house for months on an increasingly stingy market.  If you’d like to talk to us about your home or would like to know more about how we operate, take a look at our website and feel free to give us a call when you’re ready.

Downsizing

This can have several meanings.  If funds are tight and spending needs to be reduced, a less expensive house can make all the difference.  The number many use as their cutoff point is 60%, as in they know it’s time to unload their home when mortgage payments eat up over 60% of their monthly paycheck.  Sometimes the decision to downsize isn’t made out of necessity, but for the sake of convenience.  If your family becomes smaller (when a child leaves for college, for example) it may be time to look for a home with fewer bedrooms and less overall space.

More trouble than it’s worth

If you’ve ever owned an old car, you’ve probably had the following conversation at least once:
“You should really get those brakes fixed.”
“No way, that repair would probably cost more than the whole car is worth at this point.”
This probably won’t literally be the case for your home, but a house that constantly needs repairs can be an incredible waste of time and money.  If your “things to fix” list keeps growing and you’re racking up serious expenses, consider scaling down to a more affordable renovated home, one whose issues have already been identified and corrected.

If you can relate to any of these circumstances and decide that selling your home is the right move, check out our website at www.expresshomebuyers.com, we’re happy to discuss your situation and assist you by either buying or helping you sell your home.

Scam #1 – The “Helping Hand” Company

We ran across this particular trap about two years ago – it came from the Better Business Bureau and it’s a doosie. These companies look like the “We Buy Wretched Houses” companies that pepper the landscape with flyers and get-out-of-your-mess-quick promises. You sit down with them, and they tell you they will buy your house for a specified period of time. Not only that, they promise you can continue to live in the house while you pay them much reduced rate with a promise that when you catch up on your finances, they will sell you the house back for very reasonable terms. They pick up your late payments and penalties, and you get back to regular payments.

Sounds pretty good.

What you are not aware of is the papers you sign include some non-traditional mortgage terms. The favorite of these helping hands companies is a binding rider that notes “a deed will be executed if you are 10 or more days late on a payment.” Translated, it means the company will take immediate possession of your house and any and all equity if you are 10 days late on any payment during the contracted time period.

Best Course of Action – Use You Head and Call In Professionals

If you need to sell your house fast, our advice is pretty straightforward: avoid doing really dumb things because you are in a state of personal financial panic. Here are the best steps we can suggest:

1. Work with Professionals
   Only deal with companies who have an established history of home buying.
2. Check them Out
   If you have any concerns about the buyer, don’t hesitate to check them out. We always ask our skeptical clients to check out the Better Business Bureau.
3. Always Know What You’re Signing
   Don’t be shy; ask for help! A lawyer or even your mortgage company can help you if you want professional advice from a third party. Never, ever sign a contract that you haven’t read – “oh, that’s just standard contract stuff” – or don’t fully understand.
4. Be Willing to Walk Away
   If you have any doubts about the buyer or the contract — or if it just doesn’t feel right — just walk.

Of Course, Call Us
Many times, people facing foreclosure call us just for advice. We’re glad to help, whether you choose to sell your house to us or not. We buy houses fast, we’re Better Business Bureau accredited. With Express Homebuyers you can sell your house quick, and be secure and comfortable doing it. We’ll introduce scam #2 from this week’s Washington Post next time.

Chances Are You’re Reading This For One of Three or Four Good Reasons.

First, you may have fallen on hard times. If anything, the current economy has taken any shame out of this position. There are few of us who aren’t affected to a greater or lesser degree. Second, your house may be in a condition in which you can’t sell it unless you spend lots of money fixing it up – money you don’t have. Third, you may have inherited a house through a family event like a death or retirement. Finally, your house might be close to foreclosure, and you simply don’t know what to do next.

Here’s a Simple, Winning Strategy – Sell Your House Now. Then, Buy Another You Can Afford!

It is really that simple. If your situation is such that you need to get out of your present personal economic crisis, then stop trying to make the huge profit on your house you think you deserve. In any one of the four situations described above, you probably can’t.

But you can profit.

Many real estate investment companies (like ours) are in a position to buy your house outright very quickly. As part of the purchase plan, you will be required to pay off all the debt and difficulty associated with the property. But when you do, you will be free and clear of the house and its troubles when the dust settles.

Now, here’s what to do with the cash you have left.

Simple. Buy a House You Can Afford!

Take the proceeds from your selling off of your personal asset – your house – and use it as a down payment for a house you can afford. Now.

Interest rates are low, houses are at their lowest prices in years, and you are now free and clear of all the financial mess that got you here in the first place. What’s to stop you from buying a new house, and a new start?

Look for the Best Value You Can Find.

For us at Express Homebuyers, this is the fun part.

Our business is buying your previous house, and selling you another, similar home that we have fully renovated. Lots of the folks whose houses we buy turn around and buy one’s we have already remodeled. With new gourmet kitchens, granite counter tops, ceramic floors, and completely reconditioned bathrooms and bedrooms, our houses represent one of the best values on the home marketplace today. We buy houses in Prince Georges County, Montgomery County, Washington DC and Virginia.

We close on them pretty quickly, too – usually in under 30 days.

So, one month from today, you could be walking into a newly remodeled home instead of worrying about the one you’re in. And as a personal economic stimulus package, we think that’s pretty neat.

So, need to sell your house fast? Sell it now and improve your overall financial position. We buy houses like yours every day.

Should You Sell Your House to a Homebuying Company?

Okay, so you’ve investigated all your options, and foreclosure looks imminent. Unfortunately, today that’s not an uncommon occurrence. But knowing you are part of an increasing group isn’t really helpful. Neither are signs hung all over the neighborhood offering to buy your house in a hurry – like this:

Ugly House Buyers

If you are like most homeowners facing foreclosure, you need to make a decision quickly after having reviewed all your options. And selling your home to a company may be the best option for you. Here are some of the advantages:

• Quick closing: A good homebuying company can buy your house in just a few days. They’re experts at it, and know exactly what to expect.
• Cash: Often, these companies have the cash on hand to buy your house outright. Having the cash on hand is a huge advantage, particularly if you need to pay off many of the debts associated with your house or present financial condition.
• Few, if any, closing costs: Or hidden fees and commissions. Most reputable homebuying companies will handle, and pay for, all the closing costs; note, they can not pay mandatory local transfer taxes and fees. Those will still be your responsibilities at the point of sale. However, a good homebuying company will help you with those by making sure you have enough cash on hand at closing to cover these.
• A Positive Ending:If you are like a lot of people in your position, you may have reconciled yourself to a negative – if not ruinous – end to your housing issue. It doesn’t have to be that way. Working with a good homebuying company can turn what appears to be a major financial problem into a positive position.

Let’s be honest, though: you can’t sell your house and expect to avoid the expenses you have on that house. The real advantage here is to get quick cash for the equity you have in the house so you can pay off the mortgage, back taxes, liens, and any other debt associated with the property. You may not get rich, but you’ll have a better chance to get back on your feet with your credit rating intact.

Be Careful. They’re Everywhere!

Wow. We’ve gone from real estate management to selling your house to an unknown company in just four blog posts. That can be pretty scary. How do you know if you’re getting a good deal? If the company is reputable?  What can go wrong?

As you can tell from the number of signs you see on the highway, there are homebuyers everywhere. In our next blog, we’re going to share some tips on what to look for in a homebuying company, and how to find out and avoid some of the major pitfalls if you want to sell your house fast, or sell your house for cash.

But here’s a hint: Check if they’re Better Business Bureau accredited. If not, caveat emptor; buyer beware! You might be tempted to say: “Buy my house, now.” But proceed with caution; not all homebuyers are the same.

Unabashed Advertising

We buy houses fast. And, we’re Better Business Bureau accredited. Since 2003, Express Homebuyers has been buying, refurbishing and selling properties in the Washington DC metro area. If you want to have us buy your house, or know of someone who could benefit from our services, contact us at 1-(877) 907-3232.