“I need to sell my house immediately.” Said the desperate voice of a client on the other phone end during a call received at our offices back in November 2020.
Back in September 2020, a client called us looking to sell his house. He had spent quite some time searching on how to sell his property. To do so, he contacted investors and real estate companies in Portland.
He found out no one of them was willing to help him. During his search, he found our webpage and sent us his information. Initially, we had a facetime meeting. After that, we set an appointment to visit the house. Then, seven days later, he received a check for his property.
Since 2020, every aspect of human life has been placed on testing. Covid-19 has been devastating, especially in the United States. Currently, the pandemic is better controlled, but the deaths and damage in the economy will be in Oregonian’s minds for a long time.
In Oregon, the unemployment numbers reached 13.7 percent by April 2020. In August 2021, the rates came down to 4.9%, the lowest number since the pandemic broke out.
Although the unemployment rates are lower many people who lost their jobs and other income sources still face challenges because they can’t meet their financial obligations.
Many homeowners get into the mortgage forbearance programs and remain active with several months of been delaying payments. According to Black Knight, by September 2021, 1.578,000 home loans remained in forbearance.
Our client in question was temporarily suspended from work made his financial situation worse. Months with no income and obligations to meet have pushed him to the brink. He told us about the unfortunate streak he was going through, looking for a quick solution.
We suggested he contact his lender to inform him about his problems. And ask them for the current government programs to assist homeowners during the Covid-19 crisis.
He explained that he had contacted his bank already, but they did not offer a solution because he was already behind on his mortgage payments. So, getting approval for a forbearance plan was not possible in his case.
The CARES Act protects homeowners with federally-backed home loans from foreclosure for a specific time. According to the Consumer Financial Protection Bureau (CFPB), under the CARES Act, a federally backed mortgage loan is any loan insured by the Federal Housing Administration or the National Housing Act.
Looking For Help
Our client received a notice of default. He found he had no arguments or any legal tool to stop his lender from foreclosure his property. After thinking about his situation, he decided to sell it right away to avoid foreclosure.
Although he knew courts in Oregon were closed during 2020, they were operating behind closed doors, and his financial situation worsened. So, he knew he got to act right away.
Looking for help, he contacted a couple of well-known realtors companies in Portland, but both of them refused to help him because his house needed repairs, he was unemployed, and behind on his mortgage loan.
The realtors told him that there were no motivated buyers in the city or the state to buy because of the COVID-19, so no one would be interested in purchasing his house under these conditions.
What Do We Do To Help Desperate Homeowners In Oregon?
We sympathize with our clients and do our best to satisfy their needs. We believe that we can help them in many ways. Depending on the case, if we think the best help is connecting them with other sources of information to solve their problems. We don’t hesitate to do so.
In this particular case, we were able to present our client with the best solution.
Based on the information collected from our client. We concluded that it was necessary to set an appointment to visit his property and explain our home buying process in more detail.
Our policy is to disclose the steps needed for the purchase, plus the benefits for our clients for not having to incur any expenses, real estate commissions, and closing costs.
Our client was worried about us visiting his house, which was understandable. The Covid-19 has been out of control, taking dozens of thousands of lives.
We follow the local authorities, the government of Oregon, and the CDC recommendations to stop the pandemic. At the same time, we are using technology to keep serving our clients by buying homes and keeping social distance.
As a company in the service area, we have had to reinvent ourselves to continue working with public safety. We are applying a home buying procedure that follows the authority’s regulations.
After a person contacts us
- We call the customer either by video call, Zoom, or Skype, or regular phone call. We ask questions about the property and the client to know his needs and the best way to help.
- Pre-offer. Based on the client’s information, we prepare a preliminary offer, which will be subject to change after we physically visit the property and investigate its legal status.
- Visiting the client’s house. After a previous agreement, a representative of our company will physically visit the prospect property. Following the social distancing protocols, this official will show up wearing a face cover, gloves, and shoe covers for our client’s protection, his family, and ourselves.
The house visit will last approximately 20 minutes. Time enough to check on detail the property
- Final Offer. We will present a writing offer with the complete house information where the parties involved in the transaction favorably. Then, we let the client know that he can take the time he deems appropriate to study and accept our proposal.
Every proposal we present is free from pressure or obligations.
- Closing, Once the client accepts our offer, we proceed working on the sale-purchase paperwork, and immediately we deliver a check for the property. Our home buying process takes an average of 7 days; sometimes it takes a little longer, sometimes quicker, like 2 days only.
During our visit to his house, the client said that he was considering filing for Chapter 11 bankruptcy. Besides being behind on the mortgage payments, his marriage was going through a difficult time, and his wife was threatening to divorce him.
We understand that a crisis can escalate to relationship problems. Still, that sensible area is where we work with more determination to develop a solution that helps our customers and their partners in life.
We are transparent in conducting business. We do not take advantage of anyone’s situation. Our mission is to be the solution for homeowners who need to sell their homes.
Why Can We Close In 7 Days?
Our client was surprised when we said that we could close in 7 days.
Usually, within 24 hours after we visit a property for sale, we present the owner with a written offer. We have the cash available to pay for houses immediately. In a traditional real estate transaction, It is necessary to wait until lenders approve home loan applicants. We don’t depend on banks or lenders. We have the cash to buy properties.
We buy houses in Oregon for cash and across the United States using our own money.
We didn’t know that our client had previously contacted other investors in Portland. Also, he explored the possibility of hiring a real estate agent to sell his property.
Several days after we presented him with a writing offer, we heard from him again. He told us that he was ready to go ahead. He spoke with his wife, and they decided to sell the house. Meanwhile, they were willing to give their marriage another chance.
Our team went to work immediately, and ten days later, we signed the documentation and delivered the money corresponding to the purchase of our client’s house.
Once we closed the deal, the client told us that he found our offer the fairest one received by comparing proposals.
We buy properties for cash and can close in 7 days. We count on our capital; this means that each transaction lasts 60 to 90 days less than a traditional real estate transaction.
A Satisfied Client
Our client expressed his discomfort because he was rejected twice by real estate agents. Once they knew about the problems he was going through, realtors simply cut any communication way with him.
Even one of the agents suggested he do nothing and wait until his loan servicer filed a foreclosure.
We all face difficult situations at some point in life. Today in Oregon and the world, we suffer from the coronavirus crisis, unemployment, fear of the pandemic, economic distress, and for many, the pain of a divorce. But the solution to all adversity is simply to act quickly.
We are happy because we were the solution for this client’s home problems. He contacted us at a desperate moment in his life. Then, we could buy his house and give him the chance to get back on his feet.
Recently, he was visiting our office, just a year after purchasing his house. This time, he came to the office to bring one of his friends who own property under a forbearance plan and want to sell it.
2021 is another year of challenges. The pandemic is far from being controlled. Many businesses closed for good; people can’t get stable jobs, political changes and an uncertain housing market are in the way.
Selling You House Under Forbearance
Eviction and foreclosure extensions could help renters and homeowners end 2020 and continue through 2021 under a roof. But still, nobody knows what the situation will be like in the near future.
A Forbearance plan is a temporary reduction or suspension of your mortgage monthly payment to help you get through a difficult time. You will have to repay any lost or reduced payments in the future through one of the many options.
While you are in the suspension of payments, you can still choose to make partial payments, which will reduce the amount you will have to repay on a future date.
The program is available to homeowners who have mortgages from federally backed businesses, such as
Fannie Mae, Freddie Mac, VA, reverse mortgage HECM Loans
Through the mortgage forbearance plan, you are entitled to a 180-day break to pay your mortgage. You can also temporarily lower your mortgage payments if you are a federally backed home loan borrower and claim that you are experiencing financial difficulties due to the COVID-19 emergency directly or indirectly.
This program is called mortgage forbearance or mortgage relief. Your mortgage servicer (the company you send your monthly payments to) can tell you if the federal government backs your loan.
At the end of the mortgage forbearance, borrowers should pay back the missed payments and regular monthly mortgage payments. You can choose one of the following:
- Reinstate (pay the total amount due at once.)
- Repay the forbearance amount (in addition to your regular monthly payments) over the next 12 months.
- Defer payments (add missed payments to the end of the Mortgage loan). If eligible, using the COVID-19 Payment Deferral will allow you to keep making regular monthly payments until you pay off, refinance your mortgage or sell your home (at which point, the total unpaid forbearance amount is due).
- Modify your loan (permanently change some of the terms to make payments affordable.)
December 31, 2020, was the deadline to apply for home loan forbearance relief. However, this date has been extended. The different federal housing agencies extended their deadlines to apply for forbearance as follows.
- Fannie and Freddie loans – when the “national emergency” ends
- FHA loans – February 28, 2021
- USDA loans – February 28, 2021
- VA loans – February 28, 2021
A new mortgage relief plan from the Biden Administration allows modification of eligible VA, FHA, and USDA loans, reducing monthly payments by 20-25 percent. The Federal Housing Finance Agency has similar options for conforming loans.
The right option for you depends on your current finances, employment status, and ability to resume mortgage payments.
Although the government efforts to keep people safe at home, close to three million homeowners are at risk of foreclosure, and another six million tenants are to be evicted.
The second wave of the pandemic and the delta variant has caused another ban on evictions extension in Oregon and across the U.S. worsen the critical small landlord situation.
Close to three million loans in forbearance sound a few compared with almost 30 million home loans nationwide. But they could represent over 3 trillion dollars in debt by December 31, 2021. If the federal and local governments do not apply strong measures to help people, we will walk into the abyss.
Homeowners are facing their new reality in 2021, pay mortgage obligations or deal with foreclosure.
We wish you the best for you and your family. We will continue working hard to help homeowners in need of selling their properties. We pay cash for properties in any condition. Don’t hesitate to contact us. We can help you.