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?
__________________________________________________________________________

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.

This is great news, but there is a down side.  In the process of saving your home, you may lower your credit score. Anytime you are delinquent, have your payment adjusted or loan terms adjusted, you take a credit score hit.

Some homeowners who opted into a trial modification under Making Home Affordable are finding this out the hard way.  They make a few payments at the lower amount, only to find out their score has dropped.  Being in the trial program is no assurance they will even be accepted for permanent modification, yet they are penalized about 100 points just for asking for help.

The credit industry is, of course, quick to defend this practice of penalizing those who even ask for a change in loan terms.  The government realizes this is a side effect.  Consumer advocates deplore the practice on the grounds that people should not be zinged for trying to do the right thing.  All of these parties encourage people in trouble to ask for help before their homes go into foreclosure, but the credit score drop is a disincentive to many.

However, for most who seek help, this is an irrelevant side effect, especially if they are already behind on payments and close to losing their home. It’s like telling people on the sinking Titanic that they will be billed more if they chose a red lifeboat instead of a blue one.  If you’re drowning, you might prefer the blue one, however, if the red one is the only one in sight, paying more for red seems pretty reasonable.

Remedies such as loan modification, bankruptcy, and even short sale or foreclosure are last resort remedies that you might choose when you have no other options.  In a perfect world, you would be able to pay your bills without needing help.  In the real world, if you need help, your best option is to use the help accessible to you.  The time to ask is - as soon as you need it.  There may be a credit score impact with any remedy, but the impact is less the earlier you ask.

Express Homebuyers will buy your home for cash.  Call us today at 1-877-804-5252 or check out our helpful website.  We will make you an offer on your first call, provide free reports to help you make your selling decision, and even offer options to chat with one of our helpful consultants.

The not-so-obvious: We are seeing more deferred maintenance in light of the recession.

Many homeowners these days are putting off doing regular up-keep and repair to their homes. Maybe they can’t afford to replace the roof, or they’re underwater on the mortgage and don’t want to put money into seal coating their driveway when they might not be able to afford the home anymore. They might buy a $5 furnace filter but skip the annual service on the furnace.Whatever the reason, must-do repairs aren’t being done, to the detriment of owners, future owners, and neighbors alike.

We’re seeing the evidence at home improvement stores. Home Depot’s third-quarter 2009 net sales were down 8 percent from the previous year, and Lowes reported a 29.5 percent drop in net earnings in the same time period.  This is interesting as some people who might ordinarily sell their homes are renovating instead. Apparently, this remodeling trend is not enough to offset the effects of the recession.

The homeowner hopes to get by without incident. Sometimes this works out. Other times, something like a simple leak from a pipe in the wall can go from an inexpensive fix the homeowner couldn’t afford to a disaster he really can’t manage.  This situation is adding to the number of distressed properties on the market. Deferring maintenance will only make a home harder to sell and negatively impact its value.

Condo and apartment buildings are affected by recession-inspired deferred maintenance too. When owners don’t pay their condo or homeowner association fees, building maintenance doesn’t happen which brings down the prices of all units in the building. When renters don’t pay their rent in a timely manner, owners may not have the cash flow to do either preventive maintenance or make improvements.

Washington says the recession is over but homeowners with no jobs or shaky finances aren’t buying it. They certainly aren’t buying the goods and services necessary to keep their homes in tip-top shape.  This may be the reality of the current economy, but the resulting deferred maintenance will impact housing prices and neighborhood conditions.

If you need a break from the pressures of home ownership, Express Homebuyers can help you.

We will buy your home as-is and on-time – maybe even before another payment is due.  Contact us today at 877-804-5252 or visit our website to get the process started.  We can wrap up your deal in a couple weeks and even offer you a $2,500 cash advance to help you plan your move.



Don’t fall for a scam that offers you quick and ready help.  Instead, call a counselor.

Counselors work, according to a recent study by the Urban Institute.  Since 2007, when the National Foreclosure Mitigation Counseling program was founded to help distressed homeowners, $410 million has gone into the program.  Over 750,000 were helped through the end of 2008.  These borrowers were 60% more likely to keep their homes if they received counseling.  Their monthly payments were decreased to an average of $454.

Part of the counselor’s job is to help homeowners evaluate whether they can afford to keep their homes and then to help them gather the loan documents the lender needs to consider a modification.

This is an interesting finding in view of recently released statistics that 51% of loan modifications in the last year were in default by the end of 2009.  Did something change in the finances of those counseled?  Did counseling standards change as new federal programs encouraged more people to seek a counselor?  Were counselors too optimistic and those served so anxious to keep their homes that they agreed to a payment schedule that was still too high for their income?  Further studies into why re-defaults occurred in 2009 will undoubtedly reveal some needed insights.

The newest federal program announced that March 26 attacks the double-headed monster of negative equity and unemployment.  Most analysts of past housing remedies blame the failure of lenders to reduce principal and bring housing values and loan values more in sync.  The new program offers lenders incentives to offer principle reduction and provides temporary help to people who are unemployed.  Even though the program is only hours old at this writing, no one expects that this is the silver bullet that will “fix housing” either.

Counselors are constrained by available programs to offer their clients.  Regardless of the program, counselors link those who can be helped to ways to get help even if the help is not the final answer to their problems.  This stark reality does not undermine the findings from 2008: Counseling works!

Want to sell your house fast?  Your house worries can be behind you in two weeks by calling Express Homebuyers.  We buy homes for cash and can have $2,500 in your hands even before your deal closes.

When you are in a jam, there are always people willing to exploit your plight, but the so-called helpers aren’t always honest.  You may need help, but you don’t want to make things worse by hooking up with a company that either can’t deliver or has no intention of delivering once it has your money.

If you are in a position where you want to sell your home quickly, Express Homebuyers is an honest company with both reputation and resource.  We will buy it from you for cash and complete your deal within a couple weeks. There is no charge for our services. And, we are Better Business Bureau accredited.

Who uses Express Homebuyers?  Many different kinds of people!

• People who have trouble selling because they do not have equity in their home.
  • Those who have experienced the death of a loved one or the need to settle an estate.
  • People who are tired of being a landlord.
  • Those who need to sell because of a divorce.
  • People who are behind on payments or facing foreclosure.
  • Anyone who bought a new home, but can’t sell the old one.
  • People who own vacant houses or houses that need repairs.
  • Those with liens or title problems.
  • People working with a real estate agent who hasn’t come through as promised.
  • Anyone facing a job transfer or relocation.

People from all walks of life who share the need or desire to sell their homes, regardless of repairs needed, can sell for cash, close quickly, and sell to a reliable company accredited by the Better Business Bureau – Express Homebuyers. Contact us today at 877-804-5252 or visit our website to get the process started.  We can wrap up your deal in a couple weeks and even offer you a $2,500 cash advance to help you plan your move.

Reduce your personal DOM today!

Times are tough, and some homeowners feel defeated by impending foreclosure.  Some try to work out a solution with their bank.  Others try to do a short sale.  Terry Hoskins of Moscow, OH, tried another approach.  After years of arguing with the River Hills Bank of New Richmond, OH, as well as the IRS, Hoskins bulldozed his house rather than let the bank take it away.

He had paid over $200,000 on his $350,000 home, as well as numerous attorney fees and thought the threats from the bank and IRS were unfair.  Rather than being victimized, he powered up the dozer.   Hoskins, also in trouble with his commercial property that he built from the ground up, threatens to leave the land in the same barren condition he found it.

Fearing foreclosure?  Don’t take drastic action!  Help is available in DC. The Department of Housing and Community Development or the District of Columbia Housing Finance Agency can provide assistance if you face these drastic circumstances.

Express Homebuyers buys homes from homeowners.  A simple call could yield you a $2,500 advance and a way out of your housing debt in about two weeks.  Contact us today for all the details.

This is encouraging some homeowners to strategically default on their loan before they are even delinquent. Knowing that delinquency might affect their ability to apply for a new loan or even to get a decent rental, they are getting their next step in place before they make a move.  Even if they can pay the loan, the decision to strategically default may be based on the math of it all.  They determine that over the life of the loan, they will pay 10’s of thousands of dollars more for their property than it is worth.  They know their credit score will take a hit, but they anticipate that by the time their credit rebounds they will have saved a bundle.

This is a new variation on what some homeowners do out of frustration: walk away from a house they are delinquent on and mail the keys back to the bank.  Banks hate this “jingle mail.”  While it may seemingly solve a problem for someone already deep in debt, they may well receive a double whammy: they now have bad credit AND a bank may be coming after them.  The bank may come after the first group too, but the strategic defaulters are betting this won’t happen.

According to a new study by credit bureau Experian and Oliver Wyman Consulting, twice the number of people who did this in 2007 did so in 2008.  Based on their evaluation of 24 million credit files, strategic defaults are heavily concentrated in negative-equity markets where home values zoomed during the boom and nosedived since 2006.  The study found a 68% increase in strategic defaults in California, compared to a 9% increase elsewhere.

Not surprisingly, banks are less enthusiastic about strategic defaulters than regular walkways.  The major credit bureaus are developing tools to identify strategic defaulters and refuse loan modifications to this group, as they are likely to strategically default even after the modification.

All of this lends some background to what can be a more personal problem: the need to sell your house, fast. If that is the case, contact us at Express Homebuyers. We buy houses, no matter what the condition. We’ll give you a fair shake and you can sell your house for cash, fast. Check out our website for some useful secrets to selling your home fast, then give us a call at 1-877-804-5252.

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.

• While 4 million people could be helped, only 825,000 have been accepted into the program so far.
• Only 66,000 (7%) homeowners in the program have moved into permanent loan modifications.
• On average, homeowners save about $500 per month when their payments are reduced to a maximum of 31% of their income.
• Of the homeowners aided by program to date, 52% needed assistance because they lost income; 11% claimed too much non-mortgage debt; and 6% were unemployed.
• About 50,000 (6%) have been dropped from the program because they did not qualify, provide required documentation, or make all of their payments.
• 25% of participating homeowners have failed to make all of their payments while some have made none at all.

The statistics provided are interesting food for thought. Why aren’t more people applying?  Why aren’t more accepted?  Why aren’t more moving to permanent status?  Why are so many defaulting?

There is plenty of fault to go around.

Banks don’t really want to modify loans; when they do, they seldom modify the principle.  The modifications are doomed to fail for many people, especially if they are underwater and people are still paying big notes on homes that have lost their value.

The fact that some people aren’t paying their loans indicates that the modification wasn’t enough for them, their finances got worse after the modification – i.e., they lost their job, or the home they tried to stay is was too expensive for them.  Perhaps the program guidelines need to be changed or counseling needs to weed out those likely to fail and help them find new housing.

 Express Homebuyers can buy your home for cash to prevent foreclosure.  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.

President Obama promised that nearly 4 million homeowners would be helped through modification, but the initial efforts went slowly as lenders moved slowly.  In July, the President and his staff called lender representatives to Washington and told them to pick up the pace.  The most recent report released December 10 indicated that the program is not only on target but ahead of schedule in terms of people who are at some point in the process.

• 728,000 modifications have been made – 25,318 of them in the Washington, DC metro area
• Borrowers with modified loans are saving an average of $550 per month
• Only 31,382 borrowers have moved from the trial phase of the program to the permanent phase
• So far, most borrowers are keeping up with their payments

The Administration met with lenders and loans servicers in Washington this week to ascertain if they are doing all they can to make the trial conversions permanent.  Meanwhile, the push is on for people in their trial period to sign the paperwork to make the modification permanent.

As noted by Chief of Treasury’s Homeownership Preservation Office (HPO) Phyllis Caldwell, the report proves that “struggling homeowners across the country continue to receive immediate relief in the form of reduced monthly payments and a second chance to stay in their homes.”

These facts contradict a study by a watchdog group that came out the same day as the government report.  The study claims only 10,000 permanent modifications have been completed and echoes Treasury department fears that 40% of people with modified home loans will re-default within 5 years.

For many homeowners, loan modification is a solution that can work long term if the reduction is substantial enough and if the other expenses associated with the home fit within the budget.  For others, who have a home too pricey for them, other debt, or a faltering job, the process may only prolong the agony before they either lose the home or make the decision to move on.

If you are debating whether you should modify your loan or go another route, Express Homebuyers offers an alternative.  We will buy your home for cash 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 so you can plan your fresh start.  Call us at 1-877-804-5252 or check out our Express Homebuyers website for more details.

The former first-time home buyer credit is now simply the “home buyer credit.”  It is up to $8,000 for first-time buyers and up to $6,500 for certain repeat buyers.  In either case, the deadline is April 30, 2010 for signing a contact and June 30, 2010 to close. The extra seven months give new life to short sales.  As long as a buyer has a contract in place by April 30, even if the closing does not occur till 11:59 pm, on June 30, the short sale buyer can claim the credit.

There is no guarantee as to how long a short sale will take to close, but if your buyer starts the process, you should have no problem.  The probability of success will decrease the closer time gets to the April 30^th deadline.

As it happens, there are may soon be incentives that will make short sales faster.  First, the government is now trying to promote short sales through the Making Home Affordable program.  That news is several months old, but the Treasury has been promising to release new incentives for lenders and sellers.  That should happen soon.

Second, lenders, starting with Bank of America, are beginning to implement a revamped short sale portal designed to centralize and streamline short sale processing.  Many of the 17 lenders that use the Equator (formerly REOTrans.com) program are expected to get on board.

If banks have any sense, they will embrace short sales and try to resolve as many as possible in the wake of continuing foreclosures.  That is not a done deal, however, as lenders and servicers are overwhelmed. Trying to selling your home at short sale could still be a prolonged process that results in refusals by the bank to accept your deal.  As the weeks and months drag on, you can find yourself under mounting mortgage pressure.

The Home Owner Credit offers you a chance to get a buyer; the extended time increases the likelihood the paperwork will go through, but there is still no certainty.

Can’t Wait It Out?

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 plan your fresh start.  Call us at 1-877-804-5252 or check out our Express Homebuyers website for more details.

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.

Fix up your home to get the best price.

The recommendations run the gamut from fresh paint to a new kitchen.  Frontdoor.com suggests that you put up to 15% of your home’s value into improvements.  If you are selling your home to prevent foreclosure or for other financial reasons, putting a lot of money into the place may not be an option for you.  What you will want to do is invest your time and money in the improvements that will do the most good.  Ideally, you should get a home inspection so you know what problems your home might have.  Even if you do not have the resources to fix too much, you can work with your real estate agent to plan two things:

• Your course of action in making repairs with limited resources.
• The best selling price point for your home, given that you are unable to make the type of improvements needed to get the best price.

Need to move but have little cash to prepare your home for moving?

The common wisdom used to be that you could get a home equity loan to finance repairs.  With tightened credit requirements and falling home values, this is no longer good advice.  (Try for it, but it probably won’t work!)

Even if you have minimal funds to work with, there are a few things that will help you sell:

First, freshen up the home to make it look “cared for.” De-clutter all the rooms.  This step can both help your sale and help your moving plans.  If you throw out, sell, or give away what you don’t need or want to take to your new home, you will have less to move.  You can even start packing unused items in boxes, which you neatly stack in the garage or an out of the way place.

If you have lived in your home for a long time, the paint will probably need freshening up.  Repaint the rooms in neutral colors to please most buyers.  If you have wallpapered walls, at least make sure that all the seams and corners are glued down, unless you want to remove the old wallpaper and repaint.  Texture paint can do wonders on damaged walls.

Your carpeting is one thing that the buyers will notice immediately when they walk in. If it’s old, soiled, and rippled, it will deter most buyers.  Replace it if you can.  If you know the floors underneath are good hardwood, then you might want to at least have the carpeting removed.  If not, at least clean what you have.

Minor kitchen and bathroom remodels top the list of what will do the most to sell your home. If you can’t afford projects like this, make sure everything is clean, fix leaky faucets, re-grout tile where needed, and replace outdated light fixtures.

Outside your home, make sure bushes, plants, and lawns are neatly trimmed. Make any needed repairs to sidewalks, steps, railings, and porches.

When you are done, you home may not make it into House Beautiful, but if it is neat and clean, potential buyers are more likely to consider it. If it’s priced right, they are more likely to make an offer.

No money to fix your home? No time to do it?  Then perhaps you should consider the Express Homebuyers solution.  We will buy your home as is for cash.  You can work out most of the details in a phone call, receive a cash advance, and be on your way to your new home within a couple weeks.  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.

The saddest thing is in this situation is that the husband’s denial and deception turned a financial difficulty into a financial nightmare for the whole family.  The family may not have been able to keep the home, but failure to confront the problem closed the door to any alternative. (For the full story, see Is Charlie ready to deal with reality?)

According to investment broker Marilyn Logan, these unhappy former homeowners could have altered the course of events by following a few simple rules:

1. Admitted they needed help – and done it early.
2. Contacted their lender at the first sign of trouble
3. Resisted the temptation to deplete retirement savings
4. Sold their possessions

This is good advice.

Most people have not faced foreclosure, so have no experience in dealing with it.  Lenders, on the other hand, while not thrilled to hear of borrowers’ problems that will affect their ability to pay, have heard it all.  They are in the business of lending money, not managing property, so they would prefer to work with a delinquent borrower than take back the house.  Notifying the lender at the first sign of trouble, (and certainly by the time the man in the story recounted above lost his job) may have changed the outcome.  Ignoring the bills and not opening the mail doesn’t relieve the problem.

You Can Get Reliable, Honest Help

If you are in this situation and find your lender is not too sympathetic, there are many non-profit organizations set up to help.  Many times, they will deal with your lender.  Of course, not every organization that says it will help homeowners has your best interests at heart, so make sure to find a HUD-approved counselor, not someone you saw advertised on a telephone pole or late night TV.

When people are desperate, they look for any money they can make liquid, including their retirement.  Tempting as it is to tap the 401K, Logan says, distressed homeowners should leave it alone.  Her thinking?  It is easier to get another home than rebuild retirement savings.  Lenders might not be sympathetic to your not paying the back mortgage while you have money sitting in the 401K, but Logan’s advice is thought provoking:  sell off other assets you have, maybe even your possessions.  Or maybe it’s time to unload the house and start over.

The thinking here is clear.  You bought your home for your family (even if your family is just you and your cat.)  It’s more important to keep your family intact than save the home.  As much as you love your house, it’s your family that makes it a home.  If you are in troubled circumstances, choose your family even if it means moving.

Looking for a quick and trouble free solution from a reputable company?  Express Homebuyers can buy your home for cash.  We assess your home’s value in a phone call and make you an offer on the spot.  We will even give you a $2,500 cash advantage to help you move.  Within a couple weeks of accepting our offer, you are free and clear of any obligation to the property.

Wondering how this works?  Check out our Frequently Asked Questions for an overview of program, and then call us at 1-(877) 907-3232.

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.

Silver Lining?

Although you have a lot of yourself tied up in your home, this situation affords an opportunity to reevaluate your priorities. When it comes right down to it, is a building worth all the aggravation it is causing you and your family?  Is it worth risking your family for?

Sometimes people hate to let go of things because they don’t think that same chance will ever come their way again.  With a home, that is definitely not true.  Depending on how the situation plays out, you will be able to buy a home within three years (maximum) if you take the time to rebuild your finances.

You may have heard that going to a housing counselor is what you need to do when you’re in trouble.  The purpose is finding a HUD-approved counselor is partly to explore ways to save the home, but these people can also lead you to resources to help you rebuild your credit, find rental housing, and maybe even find a job, if that that is part of the reason your finances have become unglued.  Not every solution to your financial problems will result in your keeping your home, but there are solutions that will help you overcome your current circumstances with dignity and assure a better tomorrow.

Sell Your House, Fast.

One solution you may not know about is selling your home for cash. Admittedly only one of many options, but it is a great way to sell your house fast.  There are some scammers out there who promise to do this, but a legitimate company that can alleviate your obligations by purchasing your home could be a way out for you without having to suffer some of the more drastic consequences.

Express Homebuyers has been buying properties from distressed homeowners in the Washington, DC metropolitan area since 2003.  We are accredited by the Better Business Bureau (BBB) and Members of the Who’s Who Register. Only companies that adhere to the highest standards for ethical business practices can be affiliated with organizations like these. Check us out at the Better Business Bureau.

Regardless of whether you are late a few payments, have no equity, or need a lot of repairs, we can help you.  Wondering how this works?  Check out our Frequently Asked Questions for an overview of program, then call us today at 1-(877) 907-3232 and get your life back.

Homeowners with the ability to pay the mortgage they agreed to when they got the loan are one intended audience for the Making Home Affordable plan set in place by President Obama in February, 2009.  Borrowers with Fannie Mae or Freddie Mac-backed loans held by participating lenders can qualify for loan modifications that hold payments to 31% of incomes.

How the President’s Plan Works

For someone whose payment has risen to 45% of their income, the lender must absorb the loss to reduce the payment to 38%; the government will pay the difference between 38% and 31%. To reach this goal, the interest rate can be reduced to as low as 2% for five years.  Participants are encouraged to work with HUD counselors to assess their housing situation.  The program is free.

Lenders receive incentives when they successfully complete a loan modification, but lenders are so understaffed in their departments that they are slow to respond to eligible homeowners.  At this point 360,165 trial modifications have been started and 571,354  offers made; this represents about 12% of the 3-4 million eligible homeowners expected to be helped. In July, President Obama chided the lenders and asked them to increase hiring to assure that at least 500,000 trial modification are in place by November, 2009.

The original plan was limited to mortgages that were 105% of the value of the home; but this was increased to 125% in July.   In hard hit areas of the country like Nevada, California, and Florida, where percentages of “underwater” mortgages are high, many are disqualified from participating in the program. Critics allege that, because the program does not mandate principle reduction and because lenders have been slow to respond, the program will fall short of its goal of how many people it will help.  The President admonished lenders and loan servicers to increase hiring to assure that 500,000 modifications are in progress by November, 2009.

Loan Modification Won’t Work for Some

Unfortunately, during the housing boom, some homeowners bought homes that are too expensive for them, perhaps by overstating their incomes.  Lured by easy credit terms during the housing boom, these homeowners now find themselves in homes too expensive to heat, maintain, and insure, as well as pay for.  Others have  lost their jobs in this period of high unemployment and may not be able to predict when they will be working again or if their salaries will remain the same.

A loan modification, especially one that doesn’t significantly reduce the payment, can only prolong the agony of foreclosure in these cases.   For people in this condition, as well as for people who don’t want to keep the home, there are better alternatives than loan modification to prevent foreclosure.

Express Home Buyers offers one solution to people who aren’t candidates for loan modification but feel trapped with a high mortgage.  We will buy your home fast – most sales close within two weeks of your accepting our offer.  Since we buy the home directly from you, you do not have to list your home with a real estate agent or deal with banks or lawyer to negotiate a settlement for you.  We even offer you a $2,500 cash advance to help you move to new housing.

We buy homes in Baltimore and Southern Maryland; the Metro DC area; and Hampton Roads, Richmond, and Northern Virginia. Learn more about “The Express Homebuyers Advantage” and make the call to sell your home quick!