January 2019 - Page 2 of 2 - Gulf State Homebuyers

Foreclosure

A Foreclosed Home…What to do?

15Jan2019

The one term that a homeowner never wants to hear – foreclosure. It is the end of homeownership for many, and a strong learning lesson for others. But what exactly is foreclosure, and how can someone, such as yourself, avoid it?

What is Foreclosure?

Before we delve any further into how you can avoid foreclosure, it is imperative that you understand exactly what foreclosure is. If you own your home and you are making payments to a lender, then you are at risk of foreclosure. Foreclosure is the legal process by which an owner forfeits all rights to their property because they have an outstanding debt that they cannot pay. Generally, a homeowner will be provided a Notice of Default once they have missed three payments. Then the lender will start the process of foreclosure – that is, the lender will either auction the home or take possession of the home.

How To Avoid Foreclosure: Start with Financial Planning

If you already own a home or are thinking about purchasing a home in 2019, create a financial plan either on your own or with a professional. This is the first step in the homeowning process to ensure that you do not end up with a foreclosed home. You can prioritize your spending habits so that you do not miss mortgage payments. Place healthcare and your home first, then see what additional entertainment you can afford to add. If you have already missed payments on your home, this is a good way to try to get ahead. Review how you are spending your income and identify where you can make cuts. You can even delay payments on “unsecured” debt while you get caught up on your mortgage payments.

If You Have Already Missed a Payment….

Understand Your Rights

One of the biggest mistake’s homeowners can make is to panic when they receive a Notice of Default. In a previous post we outlined the process of foreclosure – reviewing the steps and having an in-depth understanding of the process can provide stress relief during this worrying time.

Review Your Assets

Do you own a second car, a boat, or jewelry? Selling assets that are unnecessary can help you make payments on your mortgage. Remember, the bank does not want to take your home, so finding cash and negotiating can help improve your position with the lender.

Do Not Ignore the Problem

Skipping payments and ignoring notices from your lender generally leads to increased financial strain and possibly homelessness. It is a careless response to this type of financial crisis and claiming ignorance has no benefits for you. Therefore, if you have missed your payments and you are receiving notices from your lender, the first action you can take is to contact them. Many lenders are willing to work with you and may help you create a plan so that you can avoid foreclosure.

Avoid All Foreclosure Prevention Companies

Although in the depth of your worry you may see some hope that these companies may bring, they actually just cause a greater financial burden. Most of these companies are for-profit and do not have your best interest in mind. They charge heavy fees and cannot guarantee that your home will be saved. Instead, put the money that you are considering spending on a foreclosure prevention company towards your mortgage. Again, this shows your good faith to the lender.

Consider a Short Sale

Until your home goes to auction, you still have the possibility of finding a buyer and presenting the offer to the bank. The offer does not have to be equivalent to what you owe, but should be competitive compared to the fair market value. When the lender forecloses on a home, they are now going to seek their own buyer; therefore, if you are able to bring a buyer to the table before the home goes to auction, you will be saving your lender time and energy on finding a buyer, and you will be avoiding foreclosure all together. In the end, this can help you save your credit and provide a better foundation for when you are seeking another mortgage.

Where to Find A Buyer for Your Property?

Finding a buyer who can provide an aggressive offer can be challenging. However, all cash buyers can be just the buyer you are looking for. Lenders are drawn towards their offers because they offer a quick and simple solution. All cash buyers, such as ourselves, can offer high bids and a quick close. Therefore, if you are looking for a buyer for your home, contact us today and learn how we can help you avoid foreclosure.

Foreclosure

Resolving Financial Burdens by Selling Your Home

10Jan2019

Are you a homeowner who is struggling financially? Do you have debt that you are struggling to pay every month, or do you find yourself living paycheck to paycheck? If you answered “YES” to these questions, then selling your home may be the solution you are looking for.

Following the economic crash of 2008, many individuals found themselves in a negative financial position. Millennials were faced with mounds of student loans and no job opportunities, while older generations were faced with medical bills and loss of retirement funds. Over the last ten years, some have recovered; however, there are still thousands of Americans who are trying to get ahead. To get out of this unwanted position, consider selling your home.

Selling Your Home Can Help Pay Off Old Debt.

Whether it is student debt, medical bills, or credit cards, paying interest on debt can be frustrating. Many times, individuals with this debt are only paying off the interest and can expect to be paying the debt for thirty years or more. This is no way to live. It increases stress and reduces enjoyment in life.

Therefore, if you own a home, you can leverage your position to pay off your debt. When you sell your home all cash, you can take the profit and pay off debt, using the leftover capital to reinvest in your next home. The housing market is shifting to a buyer’s market, so now may be the optimal time to prepare for the change. You can sell high and buy low, and get out from the creditors that are taking your financial freedom away.

Selling Your Home Can Reduce Your Mortgage.

Thousands of Americans are what we consider “House Poor” – that is, they are paying more than 25% – 30% of their income to their mortgage. Some individuals are paying as much as 50% – 60% of their income, leaving no extra cash each month to enjoy their lives.

Selling your home and transitioning into a home within your budget can change your life. Yes, you may need to make some sacrifices, such as moving into a smaller home or changing locations. However, in the long run you will be thankful. You will be paying less each month towards your home and escape the trap of being house poor.

Selling Your Home Can Reduce Your Monthly Bills.

Depending on when you purchased your home and what upgrades are inside, you may find that your utility bills are higher than you friends and neighbors. Many recently built homes are concentrating on being eco-friendly, in which they are ultimately designed to reduce your utility bills. If you are struggling to pay your heating bills each month (or any other utility bills), then selling your home and moving into an eco-friendly home can provide long term financial relief.

To assess how to reduce your monthly utility bills, look at the following: what appliances are installed in the home, what the insulation is like in the home, how the roof is on the home, and how the windows are installed. These four simple steps could help determine if your monthly utility bills could be reduced.

Selling Your Home Can Help You Prepare for Your Future.

Unless you own your home outright, you are most likely paying a mortgage. However, if you are open to moving into a smaller home, you may be able to better prepare for your future and purchase a home all cash. Depending on how much you owe on the home, the market right now is still in favor of sellers, so selling could get you enough capital to purchase a new home.

No longer will you be paying monthly mortgages and interest, but instead you can increase your monthly income, providing you with more money each month to spend on leisure activities; you can also have extra cash to save for a vacation and you can start preparing for your retirement. Getting out of your mortgage and the debt trap can be life changing.

Would You Like Financial Relief?

Stop living in debt and start living for yourself. If you are confronted with any of the above scenarios, or just want some extra cash for your future, contact us and learn more about how you could benefit from selling your home to an all cash investor, such as ourselves. We can provide you with a free home evaluation, which may be the first step in assessing if selling your home is a financially smart decision. If you are interested in our offer, we can provide you an all cash close within as quickly as five days.

Inherited

5 Steps to Selling Your Inherited House

8Jan2019

It’s never easy to lose a loved one.

Inheriting a home can make a difficult situation even more challenging. While your loved one meant well, an inherited home can cause unexpected stress.

Everything from family dynamics to the feasibility of actually using the home can conspire to make that inheritance problematic.

Here’s what you need to know.

If your loved one did not leave a will, all is not lost, we work with every situation and we can purchase homes without a will with assistance from our title company and team of attorneys.

If your loved one did leave a will, before attempting to sell, confirm the following:

You have in fact legally inherited the home. The paperwork will be completed during the probate process. Probate is the process by which the court confirms legal ownership of the home and monitors the estate while creditors are being notified and paid. You cannot sell the home until the probate process is complete.

You don’t want to get started on the sales process if you won’t be reimbursed for your efforts. If someone else will be inheriting the home, consider having a conversation with them about how they can do the work. You can assist, but if you take on the work whole cloth they might resent you.
Be sure you want to sell the home. There are three options to consider when you inherit a home. You can sell it, you can live in it, or you can rent it out. When you lose a loved one your emotions may be fluctuating, so it’s a good idea to talk it out with someone you trust before making any big decisions. For example, if you aren’t in a good position financially to invest in the home, then selling is probably your best option.

Then, take the following steps.

Step 1: Keep it Livable

This may be something you want to avoid, but it can save you time and reduce the hassle of selling.

The home will still need proper insurance. You’ll have to keep the utilities running after your loved one has passed.

However, you can save money on both these expenses if you contact the companies. You can convert the homeowner’s policy to a vacant home policy if nobody will be moving into the house any time soon.

Cancel any utilities that aren’t needed, and transfer them into your name.

You’ll also have to budget for upkeep. A housekeeper and a gardener can ensure the house doesn’t get run down.

Step 2: Clean it Out

This is a challenging step.

Cleaning out your loved one’s belongings can put you on an emotional roller coaster.

Unfortunately, this step is necessary if you’re going to make a healthy transition into the next phase of your life.

If there’s an excess of stuff, Gulf State Homebuyers will coordinate the removal of those items from the property, at times, at no additional cost to the seller.

Step 3: Assess the Value

Get a professional home assessor to value the home. This step is required during the probate process, but hiring your own professional can provide you with certainty. You want to make sure that you won’t be losing money when you sell the home.

When you market the home, the sale price will match the home value on the individual’s death date, and not the price the home was when they purchased it.

You should also keep in mind that if the value increases you’ll be responsible for paying capital gains tax.

Step 4: Choose the Right Selling Method

There are two ways to sell an inherited home.

One way is to list it with an agent, a service Gulf State Homebuyers provides its clients as we have a team of licensed agents in our office. This process can take 30 to 90 days and can involve a few more steps, but can lead to a higher selling price.

The other way is to sell it to an investor.

Selling to an investor can be easy and simple, which can come as a relief during such a challenging time.

We ourselves are investors, and we’ve recently helped multiple members of our community transition through this process.

We purchase homes with cash and buy them as-is.

That means you can sell your home to us in as little as 5 days. That means you can stop paying all the bills associated with the home and start enjoying your inheritance.

Step 5: Determine How to Sell…

There are two primary routes you can consider when selling an inherited house: either list with an agent or sell to an investor.

Selling to an investor can provide you with ease and simplicity when managing such a challenging time in your life. We are investors and have recently helped multiple members in our community transition during this difficult time. We purchase homes all cash and as-is. This means that once you are complete with the probate process, we are prepared to purchase your home all cash in as quickly as five days. You can consider selling via a real estate agent, but remember that this course can extend the process drastically and can cost you more time and energy. To learn more about how we can purchase your inherited house, contact us today.

Disclaimer: We do not give legal advice and recommend that all clients consult an attorney.

Tips

Top 5 Reasons to Get Out of Your Investment Property Today!

4Jan2019

Moving into 2019, selling your investment property may be your best option for the year! Here are the top five reasons our clients have recently been found selling their investment assets.

Reason #1: Poor Tenants

Do you have tenants that do not pay rent on time or who are destructive to your home? If you find that you are stuck with poor tenants, we have a solution. We buy homes that have unwanted tenants

Whether it is for legal or financial reasons, getting out a bad tenant is not as easy as some would expect. Due to tenants right, it can take months to get an unwanted tenant out of the home. Within those months, many homeowners incur unavoidable fees associated with their investment home. Selling with poor tenants can relieve you of the legal hassles.

Reason #2: A Vacant Investment Property

Vacancy in an investment asset can drastically impact the financial benefits that investment properties are supposed to bring. Actually, a vacant home can bring major consequences to your property. If you were receiving the monthly rent to cover the mortgage, you will now need to find alternative ways to obtain that capital. Additionally, you are now responsible for all bills related to the home.

If you have a vacant home, you could find a new tenant. Though, depending on the reason that the home is vacant, this can be both costly and timely. You may need to invest in making repairs and hire a company to help find a credible tenant. To avoid this hassle though, you can sell the home to us vacant, which can prevent you from losing income on your investment home.

Reason #3: Avoid Foreclosure

Whether it is on the current home you live in or on your investment asset, foreclosure can have major repercussions. In the present, going through the foreclosure process can cause individuals an immense amount of stress, which can cause emotional and physical damages to one’s body. On a grander scale, if an individual loses their home to a foreclosure, they essentially lose all equity they had gained in the home plus their credit is negatively affected – this combination can make it exponentially challenging to purchase a new home in the future.

To avoid foreclosure, you can either sell your personal home and move into your investment home, or sell you investment property and use the cash to get ahead on your mortgage payments.

Reason #4: Liquidate Cash for Other Financial Burdens

Life always present with uncertainty, and many times this uncertainty comes with unexpected financial burdens. Whether it be an unforeseen health diagnosis, loss of a job, or one of the countless other reasons citizens find themselves in a financial strain, selling your investment property to pay off other debts can provide investors personal relief. They can avoid paying high interest rates and prevent their credit from dropping. Plus, staying afloat provides opportunity to get back in the investment game in the future.

Reason #5: Prepare for Retirement

The last four reasons outlined have been directed towards how selling your investment home can save you from a tough time in your life. However, selling your investment property may just be the next step in your life to move forward.

If you are planning for your retirement then selling your investment property can provide you with two major benefits. First, you can let go of all responsibility of tenants. No more manage equals less stress, which is great for when you are entering the next phase of your life. Secondly, selling your investment home to prepare for retirement can give you extra cash for whatever your next adventure in life is.

Should You Sell You Investment Property?

This is a question that you need to ask and reflect on yourself. Can selling your investment home provide you with advantages to make that transition to the next phase of your life, whether it be getting some financial freedom from debt or financial freedom for the future? If you think that you could benefit from selling your investment home, try contacting us and speaking with one of our staff.

We specialize in buying all types of investment properties – homes, multifamily, and commercial properties. We can provide a free evaluation on your asset which may make the next decision a bit simpler. Don’t wait – get started today to find out how we can help you.

Tips

Happy New Year! 4 Trends Homeowners Can Expect for 2019

3Jan2019

Welcome to 2019! Time for a new year for real estate homeowners, sellers, and investors. Last year was a great year for homeowners who were selling…but what does 2019 hold? Here are 4 trends we can anticipate for 2019.

Interest Rates Will Continue to Rise. Ending the fourth quarter of 2018, the Federal Reserve has raised interest rates again, which has ultimately created an increase in mortgage rates – actually, the highest they have been in the past seven years.

What does this mean for homeowners? There will be fewer potential buyers for your home. Due to increased interest rates, individuals who are seeking to purchase this year will either identify a home that is lower in price, or hold out to see if the market shifts completely to a buyer’s market (which some analysists are projecting).

Home Prices Are Dropping – The Future is Uncertain. The last year has displayed a continuous upward trend in closing sales prices for homes (including in Baytown). However, the last month has halted this trend, displaying the first decline in home values in the last twelve months. This could be a result of the holidays or the unstable stock market – either way, the change is bringing uncertainty to economists.

What does this mean for homeowners? Just like the title says – home prices are dropping. This means a lower selling price for when homeowners do decide to sell their home.

Inventory Will Continue to Increase. Have you looked at how many properties are available in your local market recently? If you take a closer look you can see that inventory is increasing. Compared to August, potential home buyers have an exponentially higher number of home buying opportunities. More homeowners are taking into consideration recent trends (specifically, the suspicion that the housing market may crash; however, not as bad as 2007). The future of 2019 indicates that homeowners will continue to list their homes to ensure that they sell before it is too late.

What does this mean for homeowners? More homes equal more competition for any homeowner looking to sell. Unfortunately, this can drive the value of homes down since home buyers have more options. Also, if homeowners do not input the time and energy into upgrading and staging their homes they may have an even more challenging time selling.

Homes “Days on Market” Time Will Continue to Remain Stagnant…or Increase. From 2017 until recently homes have been selling in record breaking times. For Baytown specifically, homes have displayed a continuous rising trend for days on market since March 2018 – an indication that it is becoming more challenging to sell. 2019 is expected to continue this trend as competition increases

What does this mean for homeowners? Selling your home is not as simple as it was a year ago. If you are planning on selling in 2019 and you want to sell via a real estate broker, you will want to get started as soon as possible. With an uncertain economy and an increased expected time of how long a home must be marketed until it sells, homeowners will want to list before it’s too late.

A Closer Look at 2019…

The future of real estate is uncertain. The end of 2018 brought an all-time low to many stocks in the market, which is often an indication that a crash is inevitable. However, with the holidays, the government shut down, and the continuous trade war that Trump has with China, most analysists are torn on what 2019 means. Nevertheless, if you look at historical trends you should anticipate that the downward movement of the housing market can be most anticipated.

Recommendation for Homeowners:

If you own a home and are considering selling in 2019, you should get started immediately. Yet, it is recommended you avoid the instability of marketing your home, but rather consider selling to an all-cash buyer. The advantages of selling to an all cash buyer (such as ourselves) allows you to avoid the complications related to recent real estate trends. First, we buy homes with no finance contingency – interest rates do not affect our purchase. Secondly, we price your home competitively, looking at recent sales in the areas. Thirdly, we are always buying homes – inventory does not affect our purchase prices. Lastly, we do not care how long homes are on the market – we can close in five days.

As you can see, we provide many benefits to those considering selling. If you would like to learn more about how we can help you close on your home quickly, contact us today.

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