FORECLOSURE! It is the dreaded word that no homeowner wants to hear. Unfortunately, thousands of Americans are faced with foreclosure every year.  According to recent statistics, 1 in every 2471 homeowners lose their homes to foreclosure annually. Thankfully, foreclosure rates appear to be on the decline – here is the distribution of foreclosures based on the number of homes in active foreclosure in the U.S. as of February 2019:

• Pre-Foreclosures were up 4.8% compared to January 2018; however, they were down 9.9% compared to the year prior.
• Auction homes were down 5.9% compared to January 2018 and down 11.1% compared to the year prior.
• Bank owned homes were down 6.8% compared to January 2018 and down 11.8% compared to the year prior.

In Texas however, statistics are drastically different. It is estimated that 1 in every 2840 homeowners in the state lose their home each year. As of February 2019, homes in auction were up 17.7% compared to the month prior and up 9.3% compared to the year prior; homes that were actively bank owned were down 25.9% compared to the month prior but up 11.7% compared to the year prior.

In Baytown, 1 in every 1917 homes are foreclosed annually. Unfortunately, these rates have increased a staggering amount in the last year. Homes in auction have increased 275% in the past year and homes that are bank owned have increased 250%.

What has contributed to the increase in foreclosed homes in Baytown?

In recent years Baytown has experienced an economic downturn; unemployment rates have lingered between 8% and 10% since 2015 – this is more than 5% higher than the average U.S. unemployment rate (as of March 2019 the U.S. unemployment rate was 3.8%). Two major factors have been identified as the contributors to this decline – a collapse in oil prices and the decline in construction rates.

The good news is that the future is bright for Houston and the surrounding areas. In fact, Consvestro, a company from Germany, is planning to construct a $1.7 billion petrochemical plant in Baytown.

What to do if you are facing foreclosure?

Contrary to the good news projected by economists, many community members in Baytown are still facing a horrible situation – foreclosure! You may have fallen so far behind on your payments that you need a quick solution.

Unfortunately, if you go through a foreclosure you will face a multitude of consequences:

• Your credit score can be expected to decrease between 250-280 points – this will take at least 3 years to bring back up.
• You may be faced with unexpected tax problems and might be required to pay federal capital gains tax. Thankfully however Texas does not impose capital gains taxes so you most likely will not face consequences with the state.
• In most cases you will be unable to buy a new home for another 5-7 years.

There is however a way to avoid foreclosure and get out of your situation without the consequences listed above. You can sell to an all-cash buyer.

Why sell to an all-cash buyer?

If you are facing foreclosure you can choose to sell to an all-cash buyer, such as ourselves – Gulf State Homebuyers. By selling to us you can avoid giving your home back to the bank. When you sell to us, we provide you with an easy solution to a big problem.

Here is what we can do for you:

• We can help you get out of your home quickly. After our initial offer we can close on your home within five days.
• We can provide you with a competitive offer. We do not take advantage of your difficult situation but instead try to help you get ahead.
• We can accommodate your moving date and even help you pay for moving expenses.

The best part – our process is very simple. Once you contact us about your situation we will have one of our qualified staff visit you at your home. There will be no need for additional contractors or appraisals – we have bought plenty of homes and are confident in giving you an on the spot offer. Once our staff visits your home and assesses its value, they will provide you an offer the same day. If you chose to sell, we will complete all the necessary paperwork. You will be responsible for zero closing costs and no agent fees. The price we offer is the amount you get.

If you are facing foreclosure and would like to learn more about receiving your all-cash offer, contact us today for your free consultation.

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.

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.