Definition of Unwanted House:
A not desirable house is a property that, with time, became a burden.
People get emotionally attached to a material structure that provides shelter, which we call home. Still, unexpected circumstances in our life may make us landing on a displeasing ground, like:
- Job loss
- A Divorce
- Natural disasters
- Unpredictables events like the Novel COVID-19 we are facing today.
Among many of the ones above, one day you may wake up with needing and desiring to sell your home. If this is happening to you, you are not alone. According to the National Association of Realtors statistics in June 2020, home sales were over 4.7 million nationwide, and pending home sales had increased by 16.6% in the same month.
Experts believe home sales in Portland will decline over 2.5% from the actual numbers by the third quarter of 2020, and close to the 6% in Oregon. The forecast for the 4th quarter of the year overpass 5% decline in home sales in Portland, and over 8% in Oregon.
By today in the United States, existing-home sales are expected to decline by only 3%, with sales ramping up to 5.6 million by the fourth quarter of 2020. New listing homes for sale are projected to rise by 4.5%.
The reality is that with unemployment reaching historic numbers, a pandemic that we are far away to get control of. Perhaps fewer homes for sale, but because interests are low, the Portland market is hot.
At Better Off Home Buyers, we think the Portland real estate market would switch its course having a low number of homes for sale in the next two months. The house available for sale numbers will be changing gradually after the forbearance program ends in October 2020. More properties will be for sale as an imminent foreclosure wave kicking-off across the USA. It will be a saturation of empty houses in all USA big cities, with not many motivated buyers.
That is the reason for this post; we are using the term “Unwanted House.”
The actual COVID-19 crisis is causing significant Psychologic and economic difficulties. Many households are going through different issues; most of them have been created for isolation, the new lifestyle, job loss, and considerable income decreased.
It all seems like in 5 months; we had to get adapted to a lifestyle we never imagined.
For homeowners who are suffering from a shortage of income, the pandemic psychological repercussions, and being behind on mortgage payments, it is more than they can hold.
So, having all these factors into account is when a homeowner declares:
“My House Has Become An Unwanted Asset.”
Over an early August phone conversation, Mr. Ryan Mcgee from Portland metro manifested to us his frustration for the experience he and his family are living due to the pandemic.
Long history short:
Mr. Mcgee owned a mom-pa. Iris restaurant in downtown Portland until September 2019, three months before his commercial lease expired. Mr. Mcgee received the paperwork to renew his lease agreement with a 40% rent increase from his landlord. He was trying to negotiate, but the lessor did not accept other terms.
“I was breaking even, so it was unrealistic to continue working under the new rental agreement,” Ryan said.
He couldn’t relocate his business anywhere in town. In December 2019, a week before Christmas, he got a job as a chef in an Italian restaurant, meanwhile, the Macgee family of four were using their savings to cover expenses. By January and February, the restaurant business went just ok. He was able to work full time, and everything was looking good. He thought that fresh air was blowing in his way.
By March, when the pandemic broke out, the restaurant got slow. In April, the restaurant was temporarily closed to comply with the State and health authorities’ regulations to avoid coronavirus spreading, so all the employees were sent home.
Ryan contacted his lender to get information about the forbearance plan. Still, he finds out his loan is not backed up by any of the federal mortgage agencies. With no income, out of savings, he got behind in his mortgage payments.
The restaurant where he was a chef reopened partially for take-out only, but he wasn’t called back to work. Now with two little kids and a wife to feed, he is getting desperate because, for the mandatory quarantine, he could not go out to look for another job or a way to earn money needed to cover his family expenses.
In conversations with his lender, Mr. Mcgee was able to get three monthly deferral payments, (May, June, and July). Currently, at the time of this publication, he hasn’t the money to resume mortgage payments.
Mr. Ryan Mcgee has permitted us to use his name in this post. After we knew his history, we offered to buy his house, and sign a lease agreement for a year starting with rent payments two months after closing. So, he and his family can stay in the house and have the chance to get back on his feet.
Last time we were talking on facetime, he told us he needs time to discuss the matter with his wife, their relationship is getting broken, they argue frequently and blame each other for the money situation. We told him that the Better Off Home Buyers policy is no hassle, no pressure, that he is free to take all the time he needs, and that we will be ready to help him at any moment.
“I bet there are many people in the same situation out there.” He said before hanging up the phone.
Yes, indeed, there are thousands of families and homeowners going through the same psychological and financial situation. Many people have to have difficulties in getting adapted to the new lifestyle. Many are working from home, taking care of the kids at the same time. Others have lost their jobs and have not skills to incur into a new profession.
The lack of money, and for many, the frustration to be enclosed has triggered domestic violence cases. In Portland, the police bureau recorded an increase of more than 22% in arrests related to domestic violence, before the coronavirus break-out.
“A decline in economic activity that lasts more than a few months.” It is the standard definition of a recession.
It is official. The National Bureau of Economic Research. In making the announcement, the committee pointed to the “unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy.”
It is sad, but Ryan Mcgee’s statement, “My house has become an unwanted asset,” will be heard all over the USA.
How to sell your house from home?
Contacting Better Off Home Buyers, either filling out the information form on this page or dialing directly (503) 212-9641, is the first step to sell your unwanted property.
During our client’s first phone contact, we set an appointment to see the client’s house for sale. To comply with the social distancing, we are taking all the precautions to avoid the virus spreading. Visiting homes, we wear a mask, gloves, and shoe covers. Every home visit takes no more than 20 minutes; from there, we can present a writing purchase offer for the property.
Some homeowners don’t feel comfortable with strangers walking around their homes, for that reason we encourage our clients to let us have a virtual home visit, with their help we can see in detail their properties and write an offer.
After you accept our offer, in 7 days it will be closing, which means that in less than two weeks after accepting our offer, you get in your pocket the check for your house.
If currently, you are in a forbearance program, or your mortgage is not backed by any federal agency. If you are behind on home loan payments or your occupied rental house is becoming a burden. Do not way until things get worse!
Act now, today, you can sell your burden house from home. In life, it is okay to take one step back to recover impulse and continue with confidence in our full journey.
Keeping Credit Score High.
As additional information, we want to share some tips to keep credit scores in good standing during this pandemic.
- Pay all your bills on time, if possible. Do your best to make your payments on time, even if you’re only meeting your creditors’ minimum requirements.
- Make a budget and plan ahead. If you think current conditions could impact your income or finances, consider tightening your budget to help make sure you have enough funds to cover your expenses.
- Contact your lenders for help. If you know you can’t pay all your bills during this coronavirus time, contact your lenders and ask about hardship options as soon as possible. Many lenders are putting policies in place to help customers who may need extra time to pay their bills. An account reported as in forbearance or deferment will help minimize the impact to the credit score if the account is in good standing and hasn’t had previous delinquencies registered—this can help protect your credit history and credit scores.
- Check your credit regularly. Especially now during COVID-19, making sure your credit reports are accurate is critical. This way, you can identify any potentially fraudulent activity and respond to it before it damages your credit.
If after taking all the steps to keep your credit score, still, you are struggling to pay your bills on time. Suppose the deferral payments plan for your mortgage is opening a bigger trench in your financial accommodations. Selling your house would avoid a foreclosure. It would keep your credit report clean. This way, when everything comes back to normal, it would be easier to get another mortgage and retake the family dreams of purchasing another beautiful house.
You also may see some differences in the way lenders are reporting accounts impacted by the COVID-19 pandemic to the credit bureaus. Your lender might report your account as having made an on-time payment if you were given the option to skip or defer payments as part of a particular accommodation program. Or your lender may choose to pause reporting on the account because you’re experiencing a COVID-19-related hardship.
Avoiding a Foreclosure – Forbearance Plan.
A forbearance agreement may allow a borrower to avoid foreclosure until their financial situation gets better.
A federal law put in place two protections for homeowners with federally or Government Sponsored Enterprise (GSE) backed mortgages (FHA, VA, USDA, Fannie Mae, Freddie Mac)
With this option, you and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.
If you receive a forbearance plan, you will have options when it comes to repaying the missed amount. You don’t have to pay the forbearance amount at once unless you can do so.
You have many ways to repay the missing amount like a repayment plan; it allows you to bring your mortgage current over a while (up to 12 months).
A Reinstatement plan allows you to pay the total forbearance amount all at once.
A COVID-19 payment deferral plan, allows you to bring your mortgage current by delaying repayment of forbearance amounts without changing other terms of your mortgage. With this plan, You will not be charged interest on the forbearance amounts, which will be due and payable at the maturity of the mortgage loan or earlier whenever you sell or transfer of the property, refinance the mortgage or pay off the interest-bearing unpaid principal balance.
It is possible that many homeowners could not get back on their feet after the forbearance plan ends. Specialists have predicted hundreds of foreclosures will occur in Portland and across the USA. With the sky rocking numbers of new coronavirus contagious every day, it seems we will be dealing with infections for a long time, as economic struggles as well.
It’s better safe than sorry.
Before your house became a burden asset, consider the sale possibility, analyze the possible ways to avoid foreclosure, and prevent future headaches. You can sell your house without leaving your home.
If you need more information, call us. Together, we can study how we can help you. Our mission is to help you if you need to sell your house without incurring in the waste of time, expenses, and hassles that bring a traditional home sale.
In the same way, if you just need information about real estate issues, federal and local authority’s recommendations, or new laws, contact us. If we don’t have all the information you need, we’ll refer you to the right source.