Time flys! 2020 is going through its last trimester already. In Portland, we’ve experienced a dramatic chain of events that have had a wound in people as in the city as well and will take a long time to heal. The novel COVID-19, unemployment, rallies of protest demonstrations, and lately, the wildfires are the perfect ingredients to wipe out the economy and cause a feeling of uncertainty and despondency across Oregon.
Many homeowners, individual landlords, and small business entrepreneurs have been hit the hardest during this period of the pandemic and by the actions taken by the local, health, and government authorities to deal with the crisis.
At Better Off Home Buyers, we’ve identified the top 5 reasons people contact us to sell their properties.
Reason 1. Disappointment
The main reason people contact our office is that they are tired of the current events in Portland. Months of rallies, sometimes violent demonstrations, have deeply impacted people. Actions taken by authorities have not helped prevent physical and emotional harm to Portlanders.
Many of the phone calls we received last month expressed that callers weren’t happy with the actual look of downtown Portland. Others said they fear for their safety and prefer to get out not just of Portland but Oregon entirely.
Reason 2. Lack Of Income.
The unemployment caused by the crisis is an important reason people are selling their houses. With no income at all, it is difficult or impossible to comply with obligations. Though the Federal authorities came out with a temporary solution for struggling homeowners. Potentially, in the long run, the remedy will be worse than the illness,
Homeowners and individual landlords living paycheck to paycheck are feeling the tremendous impact of the lockdown. They say that they don’t believe they can recover 100% in a short time. Even if life in Portland returns to normal, they think it will take months for them to get back on their feet.
Owners of single-family homes or small multi-family units have informed us that they are struggling with the current situation because their tenants have lost their jobs and have stopped paying rent for several months.
Reason 3. Tenants.
With millions of job losses since the pandemic began, paying the rent has been Taft for many. Same story for landlords who have mortgage payments, overhead, and obligations to meet. There is a lot of frustration on both sides.
Tenants are saying landlords are not doing enough like maintenance of the properties and are unresponsive when tenants request minor repairs. Landlords say tenants are taking advantage of the federal and local regulations to stop paying the rent, even if they can pay.
Recently, Better Off Home Buyers was able to help a landlord whose tenant stopped paying rent in May. Although this owner had a federally-backed mortgage loan, he decided to sell his property because he has estimated he will not be able to keep the property, he said.
Afzal Almasi is an immigrant established in Portland in 1991. After three decades, Mr. Almasi has purchased seven rental properties. Four of these houses have a mortgage loan insured by the Federal Government, two properties have conventional mortgage loans, and one is paid off.
Since the COVID-19 started, 5 of his tenants stopped paying rent, and the other two are current. Mr. Almasi says he has been trying to talk to his tenants to find out how they can work together to solve the paying-rent problem. But every time he wants to communicate with his tenants, they reject him. Once, because of the phone calls, two of his tenants threatened to hurt him.
Mr. Almasi is considering selling some of his rental homes because, in his opinion, he would not be able to survive until the eviction moratorium gets suspended. Without the rental income, the cost to hold the properties is too high. He said.
Reason 4. Working From Home.
The new normal has brought changes in the way many people work. Due to compliance with the CDC social distancing regulations, a lot of companies were forced to close their facilities and to send their employees to work from home.
People have found out that from school teachers to CEOs, they can work from home and continue executing an excellent job. The pandemic has shown that remote working can be the future for a large workforce, especially those who just need an internet connection.
Homeowners working from home have found that they can continue working remotely and reduce expenses. Therefore, they are moving out to less expensive cities or small towns. In the process of buying a new home in a less expensive location, they are selling their current house. Some of them have contacted us because it is very convenient for them to sell their home to us, and not through a regular real estate agent.
Our buying house process in many cases takes up to 7 days. In the regular real estate market, the house selling time is more than 90 days. The costs of selling a house through a real estate agent are much more expensive than selling your house to us.
Reason 5. Rules And Regulations.
The CARES Act and the Oregon and Portland regulations are instruments issued by the
Authorities to address the effects of the coronavirus on the economy. However, good intentions could turn the table against the homeowners. Federally-backed mortgage loans homeowners may require to apply for a 180 forbearance plan, which could be extended for another 180 days. At the end of the forbearance plan, they can negotiate with their bank the terms to repay the missing payments.
For conventional loans, the picture is quite different. Homeowners are at the bank or the lender’s willingness to help. Many private lenders are offering 3 or 6 months forbearance to those homeowners affected by the coronavirus. Requirements, regulations or the way banks would help their clients is not clear. Banks and lenders are free of applying rules without authorities’ supervision.
Ending 2020, and after the second quarter of 2021, Hundreds of thousands of foreclosures will fill the courts across America. Without a COVID-19 vaccine, it will not be easy to come back to normal.
Homeowners and individual landlords affected by the epidemic hardship may lose their properties. Although little by little, life is coming to normal, the economy will need months, maybe years to recover.
Many changes are bringing the pandemic, learning, working, sharing, gathering with family and friends have been possible through the technology. People have realized they can work remotely from any part of the world.
Without a proper epidemic solution, the forbearance plans, the deferred payment plan or loan modification plan will be useless to the homeowners.
However, many homeowners have been proactive and have decided to take action to sell their houses. Many properties have substantial equity and homeowners are taking advantage of it.
The real estate market in Portland is showing a down curve. The inclination will continue in months to come. If the health conditions continue like now, in 2021 it will be a lot more difficult to sell a property through the real estate market. It will be more expensive and more time-consuming.
The Better Off Home Buyers comprehensive home purchase plan, has been designed to help homeowners in need of selling their properties. Through the years, we have been able to help hundreds of homeowners. Mom and pop landlords, small and big landlords as well.
We buy houses AS-IS
For more information contact us by filling out the form on this page or dialing directly (503) 212-9641.