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Most people these days know that foreclosure, short sale, or deed-in-lieu are the big three weapons that lenders use to prevent further loss. but there is a lot more in the lenders’ arsenal. Other remedies for troubled homeowners include:

1. Modifying the length of the loan or the interest rate
2. Waiving penalties and fees
3. Deferring payments to the end of the loan and making it longer
4. Applying past due amounts to the loan balance and slightly increasing each monthly payment
5. Holding a fixed rate on a loan ready to adjust
6. lengthening an introductory payment or interest rate or
7. granting temporary forbearance to stop the payments.

Presenting Your Request to the Lender

Not being social service agencies, banks do not widely advertise this “softer” side. To bring it out and allow a workout, you need to make a good case for yourself: make the lender confident that this will stop further loss. Just as is true with all credit issues, contact your lender at the first sign of trouble.  Your steps might include:

• Explain why you are in trouble and why you think the problem is temporary. If your interest rate changed and increased your payment, you need to show evidence you paid on time before change.  If your problems were caused by job loss, illness, or family circumstances, you need to show that it is likely you will have a job soon or that the crisis has passed.
• Show the bank that you have been trying to work things out on your own, through job hunting, part time jobs, or by reducing your living expenses.
• Present a specific proposal to the bank, with alternatives, verbally and in writing. A non-profit housing counselor, a real estate attorney, CPA, or other qualified source may be able to offer you some suggestions about what to propose. A typical request might suggest lengthening the loan, making it fixed, not adjustable, and lowering the interest rate.  If your proposal will lower your payment by $500 per month, you need to show how this will help you catch up and be on time in the future. A good faith payment might sweeten the pot if you are way behind.

Good preparation will increase the chance that the lender will accept your proposal.  Make sure to discuss with the lender representative how the new agreement will affect your credit record.  Your goal is to have your new payments reported to the credit bureau as “Pays as agreed,” but make sure you understand the credit ramifications before you finalize the terms.

If you decide you would prefer to sell your home, check out  Express Homebuyers.  We promise to buy your house fast or we’ll guarantee to help you sell your house fast and help you make a fresh start.

Where Did All This Stuff Come From…?

Whether or not you’re planning to sell your house any time soon, it never hurts to get things in order.  Even the tidiest homeowners are amazed by how quickly houses can become inundated by the clutter and items they accumulate.
Here are some easy tips toward consistently maintaining order and balance in your home, and ensuring that come sale time you don’t find yourself waging the war against disorder for the first time.

You Need Discipline and a Game Plan

• Instead of dabbling and making gradual improvements here and there throughout the home, focus your efforts on one room at a time.  Don’t move onto another room until the task at hand has been thoroughly completed.
• Force yourself to stay disciplined, and adopt the “in and out” approach.  For every new item you add to a room, remove an older one.
• If you have kids, make the cleaning process fun for them (yes, it is possible).  Whether it’s by giving them incentives to keep their rooms tidy and their personal belongings out of public spaces, or showing them how rewarding the result can be give them a tangible reason(reward, privilege, bribe)  to observe these rules even when they haven’t been reminded to.
• Have a vision of what the room SHOULD look like before you tackle it.
• Use hangers to sort the clothes you wear the most from the ones you break out only on special occasions.  Needless to say, garments that are out of season should be kept separately (a sealed, moth-proof rack for your hangers can be a crucial investment for your basement/attic space).
• When considering whether or not to retire an item, force yourself to decide whether you really, REALLY need it.  If you have a hard time deciding, you know what to do.
• Treat your kitchen as a sacred area: the real estate that includes your stove, sink, refrigerator and countertops should be occupied by useful items only.

When it comes time to sell your house fast, you will be more than rewarded for the work you have done on the front end. Of course, if you do decide to sell your house in the Maryland, Washington DC or Virginia area, give us a call. We can help.

You’ve probably been hearing a lot about short sales in the past few months- chances are you know someone who’s been through the process. And if you’ve been hit as hard by the current recession as many have been and have a home you’re having trouble affording, you may be considering a short sale as a viable option.

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.