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.