A week after Christmas, you may be making New Year’s resolutions that include some things you would like to do but may have little control over.  Getting out of debt or at least in better financial shape may top the list, but unless you are wasting your money on riotous living, it’s pretty hard to get ahead unless you suddenly start making more money.  In the current economy, it is hard to pick up second job to supplement your income at a time when your first one may be risk.

The New Year is typically a time when people consider fresh starts.  One way to do that if your prospects for getting aheadis to rid yourself of house debt for a while.  Perhaps a few years in a rental property or sharing a home with family might put you in a more stable position where you would be better prepared to be a homeowner.

Express Homebuyers can help you turn things around quickly.  We will buy your home for cash!  Call us and within a couple weeks, we will have assumed all of your housing headaches.  You can reach us at 1-877-804-5252 or on our Express Homebuyers website.

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.

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.

It is a tough time. More people today are facing financial decisions they never thought they’d face. An unfortunate, real situation for many of us can be summed up in a single devastating word: Foreclosure. Figuring out how to pay your mortgage much less the rest of your bills can be overwhelming. Whatever the reason, whether you are one or five mortgage payments behind, foreclosure is looming, and you may feel there is no way out.

Don’t underestimate the seriousness of your situation: foreclosure can permanently damage your credit and prevent you from ever being able to buy a home again. You need to exercise one of your options before the bank forecloses on your home and jeopardizes your chances of owning another home in the future!

Option One: Declare Bankruptcy

Declaring bankruptcy is viable option for avoiding foreclosure. But use it only as a last resort. Although you can exclude your home from a bankruptcy filing, you should only pursue it if you know that you will be able to keep up with your future mortgage payments. Otherwise you’re just postponing the inevitable, and the longer you wait, the less money you will walk away with from your property.

Declaring bankruptcy can be costly—legal fees and negotiated settlements can strip you of much needed cash during the process of filing. When declaring bankruptcy you will have the option to declare either Chapter 7, 11 or 13 bankruptcy. These refer to different parts of the bankruptcy law which relate to your degree of debt and your need to renegotiate with lenders. Your bankruptcy attorney will help you determine whether you can truly walk away from all your debts, or only some of them. However, be warned that because you can only declare bankruptcy every so many years, certain future debts might not be eligible even for bankruptcy protection.

So, is it for you? Many homeowners find that declaring bankruptcy is not an “easy way out” and does not eventually save them from foreclosure. A bankruptcy will be reported on your credit report for up to 10 years, depending on how you file. The bankruptcy will also be reported in the financial section of the newspaper—it’s a requirement from the bankruptcy court. By declaring bankruptcy, it will be very difficult to get a loan in the future for a car, home or education, or even getting a credit card.

Before you exercise the bankruptcy option, you might ask, “How can I sell my home fast?” or “How can I sell my house for cash?” Consider selling to one of the many companies that buy houses like us, Express Homebuyers. It’s a viable alternative that can prevent bankruptcy, salvage your credit, and prevent foreclosure.