“I need to sell my house immediately.” Said the desperate voice of a client on the other phone end, durant a call received at our Portland offices.
2020 will be remembered as a challenging year. Every aspect of human life has been placed to test. Covid-19 has been devastating, especially in the United States, where the pandemic has been out of control, causing many deaths and hitting the economy hard. Only in the week between April 26 and May 2, the coronavirus epidemic forced 19,600 residents of Oregon to apply for unemployment benefits. Now, at the beginning of 2021, more than 12 million are unemployed.
For our client in question, being out of 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. We at Better Off Home Buyers suggested he contact his lender to inform them about his problems. And ask them for the current government programs to assist homeowners during the Covid-19 crisis.
He explained, he contacted his bank already, but he wasn’t offered a solution because he was 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 certain time. According to the Consumer Financial Protection Bureau (CFPB), under the CARES Act, a federally backed mortgage loan is any loan that is insured by the Federal Housing Administration or the National Housing Act. That is guaranteed under the Housing and Community Development Act, guaranteed by the Department of Veterans Affairs or the Department of Agriculture. And any loan that is made by the Department of Agriculture or purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.
This client decided to sell his property right away to avoid foreclosure. He knew courts in Oregon were closed for people, but they were operating behind closed doors. His financial situation was getting worse, and he knew at any moment he would receive a “Notice of Default.”
Looking for help, he contacted a couple of well-known realtors in Portland, but both of them refused to help him because his house needed repairs, he was unemployed, and was behind on his mortgage loan. Also, he was told that there were no motivated buyers in the city because of the COVID-19, and no one would be interested in purchasing his house under these conditions.
What Better Off Home Buyers Do To Help Desperate Homeowners In Portland. OR?
We sympathize with our clients and do our best to satisfy their needs. We believe that we can help them in many ways. If the best help is connecting them with other sources of information to solve their problems. We don’t hesitate to do so.
In situations like the one presented by our client a few months ago. We are pleased to work to find the best solution possible.
Based on the information given to us by our client. We concluded that it was necessary to make an appointment to visit his property and will explain to him in more detail, our home buying process. Including the steps needed for the purchase, plus the benefits of not having to pay paperwork expenses, real estate commissions, and closing costs.
The client was worried about us visiting his house. It is understandable. The coronavirus has been out of control taking dozens of thousands of lives. Then, we explain that we take precautions to prevent the spreading of Coronavirus.
Better Off Home Buyers follows the Portland 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 Portland community by buying homes and keeping social distance.
As a company in the service area, we have had to reinvent ourselves to continue safely working with the public. We are applying a home buying procedure that follows the authority’s regulations.
After a person contacts us either by filling out the form on this page or by calling us at (503) 212-9641.
- We conduct a video call by Facetime, Zoom, or Skype, during that call, our client shows us his property. He or she informs us in detail of the house conditions, and the reasons why he or she wants to sell.
- Pre-offer. Based on the information the client provides us, we prepare a preliminary offer, which will be subject to change after we physically visit the property and investigate its legal status.
- Visiting the house. After a previous agreement, a representative of our company will physically visit the prospect property. This official, following the social distancing protocols, 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. With the complete house information, we will present a writing offer where the parties involved in the transaction come out favored.
Then, we let know the client 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. The Better Off Home Buyers home buying process takes an average of 7 days, sometimes it takes a little longer, sometimes is fast, like 2 days only.
During our visit to his house, the client said that besides being behind on the mortgage payments, he was considering filing for Chapter 11 bankruptcy. His marriage was going through a difficult time, and his wife was threatening to divorce him.
We explained to him that the value of his house would be determined by comparing other similar properties for sale in his neighborhood in Portland.
Better Off Home Buyers is 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 home.
Why Can We Close In 7 Days?
Our client was surprised when we said that we can close in 7 days. Usually, within the 24 hours after we visit a property for sale, we present the owner with a written offer. Better Off Home Buyers 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 Portland, all Oregon, 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 the initial contact, we heard from our client 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 were signing the documentation and delivering the money corresponding to the purchase of our client’s house.
Once we closed the deal, the client told us that by comparing proposals, he found our offer to be the fairest one received.
Better Off Home Buyers can close in 7 days because we count on our capital. This means that each Better Off Home Buying transaction lasts 60 to 90 days less than a traditional real estate transaction.
He expressed his discomfort because he was rejected by real estate agents when they knew the problems he was going through. One of the agents suggested to him that it was better to do nothing and wait until his bank filed a foreclosure.
We all face difficult situations at some point in life. Today in Portland and also in the world, we have been suffering the coronavirus crisis, unemployment, fear of the pandemic, the pain of a divorce. But the solution to all adversity is simply to act quickly.
At Better Off Home Buyer, we are happy because we were the solution for this client’s real estate problem. The Client in this story contacted us at a desperate moment in his life. Then, we were able to buy the house he urgently needed to sell in Portland.
2020 has been a difficult year. 2021 will be another year of challenges. The pandemic is far from being controlled. Many businesses are closing for good, people can get stable jobs, political changes and an uncertain housing market are getting in the way. Eviction and foreclosure extensions could help renters and homeowners end 2020 under one roof. But nobody knows what the situation will be in a year
What To Do At The End Of Forbearance
Forbearance is a temporary reduction or suspension of your 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 in the future.
The program is available to homeowners who have mortgages from federally backed businesses, such as
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 directly or indirectly to the COVID-19 emergency. This program is called mortgage forbearance or mortgage relief. Your mortgage servicer (the company you send your payments to each month) can tell you if your loan is backed by the federal government.
At the end of the mortgage forbearance, borrowers should pay back the missed payments plus the 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 normal 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. This date has been changed, 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 28th, 2021
- USDA loans – February 28th, 2021
- VA loans – February 28th, 2021
After the above dates, loan servicers have the green light to reopen or initiate foreclosure proceedings. At the end of the first quarter of 2021, the first mortgage forbearances will reach 180 days of forbearance. Borrowers must restart their home loan payments plus the due payment period.
Let’s hope, by March 2021, COVID-19 is under control and the national economy functions are in a stable manner
Currently, there are over three million home loans in forbearance. Many homeowners state they may not be able to make their mortgage payments again. The difficulties of the coronavirus have had a strong impact on their economy. They believe they will not recover on time to avoid foreclosure.
The pandemic second wave has caused another enclosure implementation in Oregon and across the U.S. to worsen the critical 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, 2020. If the federal and local governments do not apply strong measures to help people release a stimulus package, we will be walking into the abyss edge.
Homeowners will face their new reality in 2021, pay mortgage obligations or deal with foreclosure.
2021 just starts. Better Off Home Buyers 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.
Contact us for more information by filling the form on this page or dialing directly (503) 212-9641