5 Pro Tips For Selling A House That Needs Repairs
Should you fix up your house or sell it as-is? This is one of those questions where the answer depends on a variety of factors. What budget are you working with? How much time can you allocate? Will it be bothersome to your living environment while repairs are being made? If you are currently facing this dilemma, this post is for you! Most retail buyers do not want to buy a house that needs repairs because they can’t afford the down payment in addition to expensive repairs before moving in. They want a house that’s move-in ready! But is it worth taking on all the repairs yourself? Below are five tips to help you understand what goes into home repairs so you can determine if you’re up for the challenge. Tip 1: Do Your Homework Don’t go into this endeavor blind. It is important to do a lot of research before you begin so you don’t waste time and energy or cost yourself a pretty penny with little to no resulting benefit when you’re ready to sell. Weigh The Costs And Benefits Of Each Improvement Before you even begin to think about the details, ask yourself a few questions. What’s the condition of competing homes for sale? Is it a hot, cold, or neutral real estate market? What’s the likelihood of a return on my investment? It is important to weigh the cost of the proposed improvements against the home’s market value after the repairs or upgrades are completed. Such an improvement might not be warranted if it won’t lead to a higher price when you put the home on the market. Beware of Over Improving Many sellers put way too much money into fixing up their homes before listing them for sale. They repair flaws that a buyer may not ever notice or just won’t pay extra for. Learn The Current Housing Market Consider visiting other houses for sale in the neighborhood. Note the condition and amenities and compare them to yours. These homes are your competition and you want to make sure your home meets the standards for your neighborhood. You may not need to buy designer appliances and replace the cabinets to bring your house to full market value but a minor kitchen remodel might be a good investment. Tip 2: Determine How Much Money You Can Afford to Spend Typically, there is a long list of updates you want to make to your house. However, you only have so much money and time to make repairs. So, what should you fix? That depends on how much money you have to spend. There are 11 different options when it comes to paying for home renovations. Personal cash Refinance your mortgage Home equity line of credit Home equity loan Credit cards FHA limited 203(k) loan FHA title 1 loan Reverse mortgage Contractor Financing Take time to research each of these options and beware of sinking further into debt unless you feel confident you can get the job done right. Keep in mind that if a renovation is not needed, then it’s better to keep your equity! Tip 3: Choose The Repairs You Plan To Make Your first step is to know what problems are present. Make a list of everything that’s defective, broken, or worn out. If you’re not sure what needs to be fixed then you might consider hiring an inspector to provide you with a list of everything you need to have repaired or replaced. Repair the Critical Items in Your House Buyers might wonder what else in the home has been neglected if they spot problems or malfunctioning systems as they tour your home. Remember that not all repairs are going to be astronomical in terms of cost or the amount of time that you are spending on them. Minimum improvements you might want to consider making before selling your home include: Patch holes or cracks in the walls and ceilings Replace broken appliances and HVAC systems Fix leaky faucets or other plumbing issues Replace cracked or broken windows Repair the roof or foundation if necessary. Fix any code violations Replace worn or stained carpeting Repaint walls with neutral paint Replace old drapes and window coverings. Buyers worry about getting into a property that has large repairs awaiting them, so they will likely hire an inspector just as you did. If big repairs are needed, you can expect that the buyers will negotiate g for you to be responsible for the repairs. They may also ask to lower the price significantly, or simply back out of the deal altogether. Remodel the Entire House This is the option that will make the house sell faster and for more money. However, it is the most expensive and time consuming option and also the most risky. Remember that you want to market your house to the widest audience so if you opt for a large renovation, make sure to choose more neutral designs and don’t over improve for your neighborhood. Full remodels can take anywhere from 1-3 months or more depending on who is doing the repairs, the size of your house, the availability of money, and the schedule you are working with. Tip 4: DIY or Hire a Contractor? Now that you’ve decided what repairs to make, it’s time to figure out who will be managing the process. For smaller projects, you can save a lot of money and do it yourself (DIY). However, some repairs should be left to the pros. How you choose to handle the repairs depends on your skillset, the time you have available, and the amount of money you can spend. DIY Projects In some cases, you may be able to do the repairs on your own. Some repairs are very small and with a little focus and teamwork, you and your friends or family can make some great progress in just a weekend or two. There are a number of relatively low cost and easy ways to take care of the
8 Reasons to Act Quickly if Facing Foreclosure
More than 85 percent of homeowners facing foreclosure NEVER reach out to anyone for help!! Foreclosure damages your credit for years. You should not delay in taking action to avoid it. We call foreclosure “the atomic bomb of credit scars” because it cuts the deepest and lasts the longest. The truth is that foreclosure is the beginning of an 8-10 year nightmare that can involve: Loss of your home equity Eviction by the sheriff Job and career limitations Embarrassing creditor calls and battles Deficiency judgments and lawsuits Loan qualification challenges IRS garnishing wages and income Difficulty finding a new place to live Time is truly of the essence. If you are facing foreclosure or even just behind on a few payments, it is important to act now. Our team can help save your home, preserve your equity, and protect your credit! We will walk through all your options and help find the best solution for your situation.
11 Ways We Buy Houses
Did you know there are many different ways to sell your property that Realtors won’t tell you about? Today, homeowners have many traditional and creative options for selling their property, and we have unique solutions and the experience and know-how to do it. If you are asking yourself these questions – “How am I going to sell this house?” or “How do I sell my house quickly?” – we have the solution for you. How nice would it be to know that you could sell your home without having to make repairs, without paying a real estate agent, without needing a home inspection, or waiting through a risky loan approval process with a potential buyer? That’s where we come in! The following outlines a variety of strategies we use to help you sell your house: Fast Cash Sale Short Sale Mortgage Payment Assignment Owner Financing Wrap-Around Mortgage Sale Auction Sale Equity Partnering Sale Property Swapping Sale Lease/Option Sale Traditional Listing Sale Combination Plan If you are interested in learning more about these options, all you need to do is contact us and discuss your situation. We are here to help you throughout the entire process.
6 House Repairs That Require Immediate Action
According to a recent survey, just 55 percent of Americans would handle a repair right away. What begins as a minor issue can quickly turn into a very expensive disaster if you put it off. As any homeowner can attest, your house is an investment that continuously requires more capital with unexpected home repairs continuing to pop up. These are some of the most important home repairs that need immediate attention: Foundation Issues Your home is only as strong as its foundation. Foundation issues create a risk to the safety of everyone in the house and should be treated as a top priority. Small problems with your home’s foundation will eventually turn into larger issues and only continue to become worse. Furthermore, foundation issues can lead to roof damage and leaking, structural issues, plumbing problems, water damage, mold and insect infestation, and much worse! Outdated Electrical System Most people don’t give much thought to what’s behind their walls. However, outdated or faulty electrical wiring is a safety hazard and can lead to fire risks. Home electrical problems contribute to an estimated 53,600 fires each year, according to the Electrical Safety Foundation International. These fires cause more than 500 deaths and 1,400 injuries, and account for more than $1.4 billion in property damage. Damaged Roofing If your roof is missing a number of shingles or beginning to sag in any area, fix it NOW. Your roof is among the most critical things to repair. Are there water spots on your ceiling? If so, it’s important to assess the leak and have it repaired immediately. Not doing so could result in mold growth, structure damage, electrical damage, water damage, and many more costly issues. Water Leaks & Plumbing Issues If you have any potential water damage, do not put off the repair! Unwanted water will wreak havoc on your house. Even a small leak that you’ve noticed is probably causing damage that you can’t see. And if it’s your plumbing that’s leaking, you’re potentially going to spend a lot more on your water bill every month until you’ve taken action, not to mention the other damage it might cause. Overgrown Trees Trees are a great addition to any yard, but just make sure they don’t grow too close to your house. Trees are very heavy and not taking care of your trees could very well contribute to a massive hole in your roof from falling branches. Additionally, tree roots can cause major foundation issues if they grow underneath the house and expand as they search for the nearest water source. Mold Infestations What starts as a mild or manageable infestation of mold can quickly spiral out of control and potentially put your entire house at risk. Whether it is the ever-present shower mold or a more “toxic” mold, it’s important to be preemptive and treat any mold aggressively, as it can cause various health issues or reactions to the human body and only becomes more expensive to repair over time. Termites Termites are bad news for homeowners and can cause severe damage as they feed on the wood that makes up the structure of your house. Signs of termite damage include wood that bucks, floors starting to swell, and visible termite mazes in your furniture and walls. Termites can have a major impact on the integrity, stability, and safety of your property. Take action before you have a house that simply becomes unlivable. More than 30 percent of homeowners don’t have money set aside for home repairs and improvements. Not attending to these repairs could cause substantial damage in the long run, creating an unpleasant living environment and causing you to lose a significant amount of equity in your home. While the financial benefits of owning a home are considerable, they do come with the major obligation of maintenance that cannot be overlooked. I’m ready to sell my house—without the hassle of repairs. If you have a house that needs repairs and are looking for a way out, we are here to help! No matter what condition your house is in or the damage it has faced, we are interested in buying it from you. We’ve bought houses that needed complete makeovers and even those that needed to be torn down completely.
A Brief Guide for Selling Your Inherited House
Selling a house that you’ve inherited can be filled with many emotions and challenges. That’s why it’s important to be prepared and avoid obstacles that might waste time, cost money, and inevitably cause frustration. Use these helpful tips to make the process as smooth and painless as possible. Review Trust and Will Documents Find out the name of the executor, the person who has control of handling the estate and the right to sell the property Make notes of who the beneficiaries are, what the assets are, etc. Obtain a title report to see who truly owns the property and any other liens and encumbrances that may be attached to it. Most title companies will provide this report for free, especially if they believe that you will use their services on the sale of the property. No Trust or Will? If there is no trust or will, you have two options to move the property into your name – probate and heirship affidavits. Probate is most commonly used for people who want to keep the property for a while and typically requires hiring a probate attorney. If you wish to sell the property quickly and it is located in Texas or a handful of other states, you can save time by completing an heirship affidavit process. Most real estate investors work with specialized title companies and lawyers who can take care of this entire process for you. Remove Tenants (if any) Properties are harder to sell with tenants living in them. Showings can be difficult, and you will never know the condition of the property on any given day. Give the proper notice to your tenants to move out. Every state has a different protocol, so ask an attorney for the appropriate way to handle this. If the tenants refuse to leave, you may be facing an eviction, which can be expensive and time consuming. You’ll especially want an attorney on your side for this. Clean Out Personal Items Cleaning out a property takes time. Start early and keep going. This can be the hardest part of all. Most investors will purchase the property “as-is,” meaning you only have to worry about taking the items you want to keep. You can leave the rest behind. If you need help, don’t hesitate to hire a professional organizer to help you sort through everything. Have a hauling company pick up everything you don’t want or schedule the cleanout around your city’s bulk trash pickup days. Hire an estate sale company to sell the items and put some additional cash in your pocket. Evaluate the Property’s Condition Does the home have maintenance needs? Do you plan to remodel the property before listing it? Would you rather sell it “as-is”? Obtain multiple bids for repairs or remodeling needed at the property. We always suggest getting three bids for each job. Ask for references, check online reviews, and make sure their license and insurance are up to date. Don’t forget to ask if the city requires permits and inspections for the work being done. If you decide to sell to a retail buyer, make sure to give the property a good cleaning. Nothing is more distracting to conventional buyers than dust, rust, and grime. Also, try to remove any lingering odors (especially cigarette and pet odors). An ozone machine is great for this. Determine How to Sell the Property List with a real estate agent, sell to a cash buyer, or sell to family? There are pros and cons to each. Fixing up a property and listing it will generally yield a higher return, but it will take much longer (months to a year) and require a lot of time, money, and energy. Investors will usually buy the property in “as-is” condition, with tenants in place, and can close in a matter of days if needed. Qualify the Buyer Whether it be a conventional buyer or a cash investor, make sure the buyer can complete the transaction. Ask for references from past clients, as well as from other real estate professionals. Review and understand the contracts before you sign anything. Always ask for proof of funds! If you have an inherited house and are wondering what to do next, we are here to help. Whether you are in probate or serving as executor of an estate, we are happy to answer your questions. We can help minimize the burden of selling an inherited home, make you a fair offer to purchase the house in its current condition, and close on your schedule. Let us show you how easy selling your inherited house can be!
Unlock Your Home Equity – Now Is the Time!
How would it change your life to be debt-free? If you’re like most people, it would open up a new range of possibilities and allow you to enjoy life more. There might be money hidden in your home. It’s not inside a rusted chest in the attic or buried in your backyard. It’s in your home equity. Your home’s equity is the difference between the current market value and the unpaid mortgage loan balance. As you make monthly payments on your mortgage loan and the property value increases, you’ll begin earning equity. The more you pay down your mortgage and the higher the value of your property, the more equity you will have. Millions of homeowners regard home equity as their greatest investment. Once you tap into it, it can solve many problems and give you the financial ability to: Pay off high-interest credit cards Make home improvements and repairs Finance college tuition Invest in more profitable opportunities Cover medical emergencies Start a new family Travel the country or world Cover unexpected legal expenses Consolidate other debts Much more You can unlock your home equity by borrowing against it with home equity loans and lines of credit or by selling your house. Many homeowners choose to tap into their equity through loans or lines of credit. However, these options both force you to incur additional debt on your property. If you are unable to make timely payments on this new debt and your mortgage payment, you could lose your home entirely. In many cases, selling your house is the best way to unlock the equity you’ve earned Home values in Texas have been on the rise for many years, so you may have earned more equity in your house investment than you think. Now is a perfect time to unlock your home equity. If you are behind on payments, need money, or simply want to cash out your equity, we are here to help. Let us help determine the amount of your home equity and get you cash for it.
Frequently Asked Questions
Have a few questions? Most people selling their houses do. Here is a quick collection of some of the common questions we get. Who typically sells their house to Stone Property Buyers? We are here to help you solve your real estate problem and work with people facing any situation. The majority of the people we work with want want to sell their house quickly, at a fair price, and to someone they can trust. Here are the top situations for which people contact us: Facing foreclosure Late on property taxes Behind on mortgage payments Inherited house/probate Going through divorce Major repairs needed Vacant house or bad tenants Tired of being a landlord Declaring bankruptcy Low or negative equity Need cash fast to pay bills Job loss/relocation … and many more How does the process work to sell my house? We have dramatically simplified the home selling process to eliminate all the needless stress and anxiety people typically face. Our goal is to minimize the burden selling a home places on you and still provide great customer service and care to you all along the way. Let us show you how easy selling your house can be! Step 1 Request an offer and provide details on your house and situation. Step 2 Schedule a house visit and receive an offer. Step 3 Close and move out on the date of your choice. Will you help me for free even if I don’t want to sell? Yes! When you get into a tough spot with your house, it’s extremely difficult to make any decisions without knowing your options. We will take the time to learn about your unique situation and help you understand all the options available to you. Regardless what challenge you are facing with your property, together we will find the best outcome for you. Whether you decide to sell your house to us or not, our services are 100 percent free to you. Our own families have faced numerous real estate challenges over the years, and we understand firsthand how sensitive these situations can be. During such trying times, it can be difficult to know who you can trust. Our team has seen it all, and we are here to help. We are an honest, ethical, and passionate team and have the knowledge and experience to help you make the most of whatever situation you are facing. We would be grateful for the opportunity to speak with you and discuss your situation. What does Stone Property Buyers do? Our mission is to help struggling homeowners solve their real estate problems. We have experience working with homeowners facing all types of challenges and serve anyone across our community who is caught in a situation causing an unnecessary strain on themselves and their families. We have the knowledge and experience to get you out from under your property so you can get a fresh start and move on with your life. Will you pay market value for my house? We pay the most we possibly can for your house, regardless of the situation you are facing and your timeline to sell. Our offers are based on the condition of your house, cost of repairs and renovations, maintenance costs, holding time, and the value of your house after all repairs and renovations have been made. While we buy houses at a discount, there are many benefits to working with us. What’s different about selling my house with Stone Property Buyers versus a traditional home sale? No commissions vs. 6% realtor commissions No concessions vs. 2% seller concessions No title fees vs. 2% title fees and home overlap No hidden costs vs. appraisals, financing contingencies, etc. Close in 7 days or less vs. close in 60-90 days Move out on the date of your choice vs. pay two mortgages and related holding costs Only one showing with us vs. inconvenient showings and staging We pay for all repairs vs. repairs negotiated after inspection Do you buy other types of real estate? Yes! We buy all types of residential real estate including houses, condos, townhouses, duplexes, rental properties, land, multi-tenant buildings, and even some mobile homes as well. Do you charge any fees? No! All of our services are 100 percent free to you, and there is absolutely no obligation to working with us. We are more than happy to visit your house, answer your questions, and make you an offer. You’re free to either accept or decline the offer. How long does it take to get my offer and sell my house? We can give you a preliminary offer as soon as we have had the opportunity to discuss your situation and learn about the condition of the house. We will make you a formal offer when we visit your house. After you review and accept our offer, closing can happen in as little as five days. If you’re not in a hurry, we are happy to work around your schedule, and you can close and move out on the date of your choice. Why sell my house to Stone Property Buyers? Many studies and surveys show that selling your home can be one of the top five most stressful times in your life. But it does NOT have to be that way. We are problem solvers. At Stone Property Buyers, we’ve simplified the process to eliminate all the needless stress and anxiety home sellers typically face. Our goal is to make the best out of whatever situation you are facing and minimize the burden it places on you. We view every relationship as a partnership and will be your advocate throughout the entire process of selling your home. The following are the top reasons why you will love working with us. Reduce the stress of selling Keep more money in your pocket Close quickly and on your schedule Get top dollar for your house Sell your house in “as-is” condition Work with a team you can trust We would be grateful for the opportunity to speak with you
Sell Your House “Subject-To”
When you sell a house “subject-to,” it means subject-to the existing mortgage on your property. The buyer agrees to make payments on the seller’s mortgage going forward in exchange for ownership of the property. With a “subject-to” sale, your name and the current terms of your mortgage stay the same. In other words, the buyer is not assuming your loan; he or she is simply continuing to pay down your mortgage just as you would. The only difference is the new buyer will own the deed to the house. Although no loans are “assumable,” anyone can make payments on anyone else’s mortgage. And as long as payments are made, the bank will consider the mortgage to be performing. You may have seen signs or heard people say, “We take over payments.” Selling your house subject-to the mortgage is essentially the same thing; it allows the new buyer to take over your payments on the mortgage and reinstate the loan if it is behind. Benefits of Selling Your House “Subject-To” Save and Improve Your Credit Because the loan stays in your name, your credit will actually improve as the mortgage is paid on time each month. Get Instant Debt Relief In cases where you owe more than the home is worth, it can help you get out from under that debt and move on with your life. Earn More Value From Your House Sale It helps the buyer reduce costs when purchasing your home and, as a result, you can get more value out of your house sale. The higher your loan balance, the more money it saves. Avoid a Foreclosure Need to sell your house quickly? Selling subject-to allows the buyer to purchase your house quickly even if it needs repairs or has little to no equity. Full Loan Transparency The buyer will arrange for a loan servicing company to collect payments and send you monthly/annual statements for full loan transparency. Still Able to Purchase Another Home Although dependent on your lender, your debt-to-income ratio won’t be hurt when a contract shows that your legal obligation to the debt was sold subject-to. Considerations for Selling Subject-To Your Name Stays on the Loan The reason you get more value for your house with this option is that it comes with financing! With 65 million people unable to qualify for a home loan, homes that come with financing sell faster and for more money. To make that happen, the existing loan must be left in place. Mortgage Company “Due on Sale Clause” A lender reserves the right to call a loan due on a home in which ownership has changed. When a lender takes back a property either by foreclosing or calling a note due, they are “punished” by the Federal government for having a non-performing loan. That being said, it is extremely unusual for a lender to call a note due on a home for which the payments are being made. If you have an existing loan in place, selling your house “subject-to” is the best way to unlock the most home equity possible while building your credit at the same time. It truly is a win-win for all parties. We are experts in purchasing houses “subject-to,” and it is our preferred method for buying houses. If you have a house that you are interested in selling, we would be grateful for the opportunity to discuss this incredible option with you. Let us show you how easy selling your house can be!
The 3 Options for Selling Your House
So, you need to sell your house. Selling in a market like today’s can sometimes be frustrating. With so many other houses on the market, it gives buyers out there more choices and sellers are often waiting 3, 6, 12+ months to sell their house for a price they feel is fair. This brief guide will walk you through the decision process to help you decide what’s best for you. Do you go the traditional route and work with a real estate agent, sell it yourself (For Sale by Owner), or work with a real estate investment company? Each of these strategies has different pros and cons, and each one will help you reach a different goal. It’s up to you to really look and see what you need to accomplish with the sale of your house before making the decision that helps you get there. 1. Working With a Real Estate Agent The most popular way to sell a house today is by working with a real estate agent. Agents know the market and have direct access to the MLS, which is the main way houses are listed when selling the traditional route. The general process of working with an agent is as follows. Step 1: You contact an agent, and they visit with you about your house to determine what they feel it may sell for. Step 2: You sign a listing agreement with the agent (normally six months), and they exclusively represent and sell your property. Step 3: The agent lists the property on the MLS, markets it, and takes buyers through your house for showings (a house should show well to sell well). Step 4: If a property sells, the agent takes care of the paperwork and negotiation with the buyer to finalize the transaction. The agent then collects their fee. Cost: Selling agent fees are usually about 3% of the total purchase price. The buyer’s agent usually earns 3% as well (totaling 6% in agent fees). As an example, if your house sells for $200,000, you could expect approximately $12,000 of that to be paid to the agents at closing. Timeline: From 3 to 12 months (with an average of 6 months in many markets) Pros: Agents know the market well and have access to the MLS, allowing them to list your house and expose it to a broad range of retail buyers. They take care of the marketing, show off the property, and put together all the closing documents for you. Working with a real estate agent is great for people who aren’t on a time crunch and can wait 6–12 months to sell, have room in the transaction to pay the agent fees, are looking for full market value, have money to pay for any necessary repairs, and are willing to wait it out until a buyer comes along who is willing to pay full market value. Cons: It can be expensive. An agent’s commission is paid out of the proceeds of the sale at closing. Most agents tend to do “traditional” marketing, which often takes 3–12 months to sell a house. This of course means you’re responsible for the costs of the house while it’s trying to sell. Additionally, an agent’s primary way to get buyers is by focusing on “retail” buyers (people looking to live in the home). This requires showings of the house, and there’s always the chance that the buyer whose offer you accept has their financing fall through or will delay the closing date. One last “con” is that many retail buyers will ask you as the seller to pay for part of the closing costs. 2. Selling Your House Yourself (FSBO) In the last 10 years, “For Sale by Owner” has become very popular. With sites like forsalebyowner.com, craigslist.org, and others it has become easy to list a house online. You could even get a “FSBO” sign for your yard, taking control of the sale process for yourself. The general process of selling a house on your own is as follows. Step 1: You determine the value of your home. Sometimes this can be tricky, but there are many online resources out there to help you. You can also ask a real estate agent or hire an appraiser. Step 2: Take pictures of the house, gather all of the details about the house (square footage, etc.), and create a listing on a FSBO website. Also, put a FSBO sign up in your yard. Step 3: Market the house. Since marketing is your responsibility, you can do as much or as little as you want. Many people list in the newspaper or online, and there are even “flat rate” MLS services out there where you can get your house on the MLS for under $500 (with no agent commissions). Step 4: You handle offers and showings and put together all the paperwork for the sale. Step 5: You and the buyer show up at the closing table and complete the purchase. Cost: The real costs to FSBO houses include: Listing on a FSBO site (between $100 and $1,000) Adding it to the MLS with a flat-fee agent (about $300 to $500) Repair costs to fix your house up so it shows well (highly variable) Potential closing costs that you may share with the buyer Buyer’s agent fee so realtors are incentivized to show house (usually about 3%) Timeline: This really depends on your ability to market the property. Usually FSBO houses stay on the market longer than with an agent simply because agents sell homes every day and know the tricks to sell. The timeline can vary greatly, but you should budget 6–12 months to sell with this strategy in most markets (some more, some less). Pros: You can save a big chunk of money by not paying agent fees. And, you have full control and responsibility over the whole process. This can be a very attractive if you’re familiar with the real estate sales process and are a good marketer. Selling your own house is really great for people who don’t need
Coronavirus: Effects on Foreclosures, Evictions, and Loan Forbearance
Like many others, the coronavirus, also known as COVID-19, may have caused you to lose your job or suffer a loss of income. If you’re a homeowner, this loss can be devastating. It may prevent you from being able to pay your mortgage as you try to use the money you do have to care for your family. Fortunately, many programs are being developed to help you during this challenging time. Here are a few things to know if you’re facing uncertainty with your mortgage. Foreclosure and Eviction Relief To provide immediate relief to homeowners and renters, the Department of Housing and Urban Development suspended all foreclosures and evictions through May 17, 2020. Single-family homeowners with Federal Housing Administration-insured mortgages will benefit from the suspensions. A recent article by CNN highlighted a statement by Secretary of Housing and Urban Development Ben Carson about the suspensions. According to Carson, “Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes and help steady market concerns.” He added that this “will provide homeowners with some peace of mind during these trying times.” Forbearance Plans If the coronavirus has caused a homeowner to lose income, efforts are currently underway through the federal government to lower or suspend the homeowner’s mortgage payments. Federal regulators recently ordered mortgage lenders to give homeowners more flexibility through Fannie Mae and Freddie Mac, which are two government-sponsored organizations that provide funding in the mortgage market. This order covers home loans that are guaranteed by Fannie and Freddie—or about half of the mortgages in the country. However, it’s expected that other mortgage companies will soon follow the policy as well. If you have experienced a loss of income, you may be able to request lowered payments or postpone making payments for a time. Mark Calabria, director of the Federal Housing Finance Agency, was recently quoted in an article by NPR as saying, “That forbearance is up to 12 months, depending on their particular situation.” Mortgage Help Options In addition to the forbearance being offered for home loans guaranteed through Fannie Mae and Freddie Mac, some major lenders are also offering a temporary pause on payments if you have been furloughed or lost your job. In a recent article in the Dallas Morning News, Robert Broeksmit, president and CEO of the Mortgage Bankers Association explained the options for homeowners. “If they have been laid off or had a drop in work hours, are ill or affected, there will be a program available to them to forbear mortgage payments,” he said. “Generally, it would be up to six months. If the hardship endures beyond that, there could be another conversation that could extend it up to another six.” These delays have been compared to those used in the event of a natural disaster. However, Broeksmit said, “But this is a lot more complex.” Here for you We want to provide you with information and resources that help you better understand the steps that are being taken and how you can find help through this challenging time with your home. If the coronavirus has caused a hardship for you, your first step should be to contact your mortgage company and discuss all of your options with them. If you are interested in selling your house during this time, we are still buying. Please let us know how we can help!