Be waiting to take action until the last minute can be risky. Right now, many homeowners are going through a bad time due to the COVID-19 crisis. The forbearance plans offered by the CARES Act only benefit the federally-backed mortgage loans.
The Portland real estate market, as the markets across the US, have been on a permanent rise. Median home prices have risen by as much as 20%. This phenomenon has its origin in the recent federal reserve new-low interest rates.
Many people are taking advantage of low-interest rates to refinance their mortgages or to buy a new house. The first-time home purchases have also increased significantly during this pandemic. Buyers of all ages have been benefitting from low-interest rates regardless of the house price they are buying.
“Fifty-two percent of buyers ages 30-39, and 88 percent of buyers ages 29 and younger were first-time home buyers. Next, 23 percent of home buyers ages 40 to 54 were also first-time home buyers. … The highest percentage of single female shoppers was found in the 65-73 age group at 22 percent. ” National Association of Realtors
The president signed The Coronavirus Aid, Relief, and Economic Security (CARES Act) On March 27. Since the law is in effect, over 4 million applications have been approved. The Act allowed struggling homeowners to postpone their mortgage payments for up to 180 days. This period can be extended for another 180 days if necessary.
The law prohibits banks from charging late penalties or interest to homeowners who have requested the forbearance plan. At the same time, it clarifies that forbearance does not mean forgiveness. At the end of the forbearance plan, the regular mortgage payments should be resumed. The accumulated missed amount should be paid following one of these three options.
- A lump sum.
- Payback in a period of 6 or 12 months. Each homeowner can agree with their lender.
- The accumulated amount will be carried over to the end of the Mortgage. It must be paid in full with the last mortgage payment or when the home is sold.
Despite this law, there are thousands of loans that do not qualify for this benefit. Also, many people who have been unemployed because of the epidemic won’t be able to recover financially in a short time.
Banks and lenders are not required by law to applied certain parameters when a forbearance plan expires. Each credit institution is free to decide the fate of a lender. Last August we contacted some of the largest banks in Oregon to ask them;
“What is the criterion you banks and lenders are going to apply to the debtors when the forbearance plans end?”
Many answered us that each case is individual and that a single criterion cannot be applied in all cases. Others told us that their interest is that people can keep their homes, and they will do anything possible to help debtors in crisis. Others rejected us simply they did not answer our questions.
Many of our clients have told us that it will be difficult for them to pay their mortgage, plus the forbearance accumulated amount. Many do not have a job and others do not earn the same as they did before the coronavirus outbreak.
We are close to ending the year 2020 and the epidemic has worsened. The measures to contain the spread of the virus in the USA have been no too efficient. The same thing is happening around the world. No one can deny the second wave of infections is hitting us already. Then, a second lockdown or quarantine is imminent.
Naturally, people are afraid, not only for the health but also for the financial aspect. The second closure of outdoor activities, restaurants, and most businesses would be more than devastating.
Simply, People could not be able to earn enough money to cover their needs, including rent or mortgage payments.
The other sector that is crying out for help is the small landlords. The rental-house owners are prohibited from evicting tenants in crisis because of COVID-19. Many cannot pay rent and have nowhere to go, evicting them, would put their health and the community at risk. There are more than 14,000 homeless persons in Portland, a number that is increasing with no control from the authorities
It is a sad situation for many, but to take action is needed soon.
Under these circumstances of not being able to make mortgage payments and having a limited income, it is a good opportunity to sell the property, especially now, that house prices have risen considerably.
Selling the property makes it easier for you to get out of trouble faster. For struggling homeowners selling the home means having made a major financial adjustment. There is no doubt, a homeowner who is having a hard time solves his problem by selling his property.
Benefits of Selling Your House.
Normally, the decision to sell a house is due to the desire of buying a bigger one, or because the children have grown up, have left, and the house has become a big and quiet place, other times because we need to relocate for work. But with the situation, we are experiencing in 2020 and what we can expect getting in 2021, in Portland and across the country, for many people, keeping a property has become a difficult burden to bear.
Steps taken by the CDC and Oregon authorities to control the epidemic have triggered unemployment not seen since the Great Depression in the 1930s. Despite efforts to keep people from losing their homes. Currently, there are almost 3 million homeowners who are under forbearance programs because they do not have money to pay their mortgage obligations.
Also, small landlords are facing the inconvenience that their tenants are suffering from lack of income, and cannot pay the rent. Oregon issues Order 20-13 to prevent tenants evictions during the pandemic, The executive Order 20-56 was signed by Governor Brown to extend the eviction moratorium until December 31, 2020.
Many Homeowners whose tenants have not been able to pay rent have contacted us seeking information to sell their rental houses. Some of these landlords have received the benefit of a forbearance plan. Others who do not have a federally backed loan are in the first steps of foreclosure. Either situation is quite traumatic to our clients, they say the stress they feel is unbearable.
Among these desperate homeowners, we had been contacted by some independent landlords that have fully paid for their rental properties. Also, their tenants have stopped paying rent some months ago, on top of that, the house present misuse and damages that could be very expensive.
The solution Better Off Home Buyers has offered to all of them is a fair price for their house. We believe a win-win offer is the right way to help tenants, homeowners, and ourselves.
The benefit of selling your home during these uncertain times is that you can take off a major headache, wait for the storm to pass, and be able to reinvest either in another new property like your home or in one to invest.
How To Sell Your Home During The Epidemic.
If you are experiencing a bad financial situation and need to sell your home during this epidemic. Selling your home through the traditional market is not good advice. We know that real estate agents are only comfortable when the properties to sell do not have any kind of problems.
For a house to be accepted and listed in the real estate market, it must be in the best possible conditions, and the owners must be free from any personal or financial problems. Despite the knowledge and training that real estate agents have to sell a property, they do not know how to solve the problems of a person that needs to sell their house fast.
We have seen the Portland market, as the country’s as well, has become more dynamic. The demand is high and the supply is almost zero. Despite the coronavirus, the current market paradox is in the low-interest rates issued by the federal reserve. Nevertheless, the attractiveness of the market does not apply to a landlord who’s behind mortgage payments. The one who owns a property with bad tenants, in bad shape, or with tenants that cannot pay rent due to employment. The protecting tenants’ regulations prohibit a landlord from evicting his tenants and take control of his property.
Experts predict that by the first quarter of 2021 we will be seeing a huge wave of foreclosures, they say that this trend will continue for the rest of the year leaving thousands of people homeless. Banks, although their main interest is not to increase their real estate inventory, they look favorably on current market prices because this means profits on properties that they seize from delinquent debtors and auction at prices above the original debt.
The only way to sell your home quickly and take advantage of its equity is by selling it to Better Off Home Buyers. We buy your home as-is no matter if it needs minor or major repairs, no matter what kind of personal or financial problem you have. Or if the house you need to sell is your rental property and is inhabited by tenants, we will buy it.
One of the many advantages we have over real estate agents is that we are the buyers. It represents an important saving for a homeowner who needs to sell fast. The fact of negotiating with us saves a lot of money and time. There is no need to list the property, do advertising, and wait months for a motivated buyer to show up. Real estate agents have to wait for their prospects to be approved for a mortgage loan.
At Better Off Home Buyers, we have more than enough capital to buy properties, we do not depend on banks because we work with our money.
The time for a house to be sold through the regular market is between 90 to 120 days. The time it takes for the same transaction with Better Off Homebuyers is 7 days, in most cases. We have had occasions where we have closed a sale in as little as two days. At other times, buying a home has taken a little over three weeks, but this is not the general average. In short, each transaction is different and it all depends on the circumstances of each one. Please compare to see the difference.
For more information, do not hesitate to contact us either by filling out the form on this page or by dialing the number (503) 212-9641.