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December 7, 2022

5 Options When You’ve Fallen Behind On Your Mortgage Payments

When you’re facing financial hardship, it’s easy to fall behind on your mortgage payments. This is probably the biggest bill you have to pay each month, so it’s a problem when you don’t have enough income coming in. And once you skip a mortgage payment, the late fees start adding up. 

Fortunately, you do have options, but you’ll need to act fast. The longer you go without paying your mortgage in Maryland, the closer you get to foreclosure. Below are five ways to catch up on your mortgage if you’re behind on your payments. 

Forbearance 

Forbearance is best for people who are facing a temporary financial hardship or loss of income. It places your mortgage on hold, typically for six months. During the forbearance period, it shows that you are current on your mortgage. You will then catch up on the payments through a lump sum or installments. The downsides to forbearance is that you stretch out your mortgage term and pay more in interest.

Loan Modification 

A loan modification is a good option for people who have the money to resume their mortgage payments but need help catching up. It is similar to refinancing because you can get a new loan with a longer term or a lower interest rate. However, a loan modification allows you to avoid higher interest rates and closing costs, and brings you to a payment that you can afford. You’ll typically have to prove a financial or personal hardship to qualify. 

Repayment Plan 

Another option you might have is a repayment plan, which allows you to repay your lender the money that you owe in a series of installments. Your lender will have to approve this, and you’ll have to show that your income is stable. Typically, lenders will take the past due amount and spread it out over several months. Again, you’ll need to have a stable income and be able to afford your payments to make this work. 

Reduce Your Monthly Payment 

You can also try cutting down your monthly payment by lowering your taxes and homeowners insurance. The trouble with this approach is that it probably won’t reduce your monthly payments by that much. Nevertheless, it can be a way to keep your home and afford your mortgage payments. For example, once you establish 20 percent equity in your home, you can remove private mortgage insurance (PMI). 

Sell the House 

What if you are behind on your payments and you don’t want to keep your home? You can sell your house in Maryland. A great option is to do a cash sale. With this arrangement, you sell your house for cash and use the money to pay back the lender. Depending on how much you owe on the house, you may even be able to walk away with money in your pocket! 

Cash sales also offer other advantages: 

  • Sell in just two weeks or less 
  • Pay no realtor commissions 
  • Pay little or no closing costs 
  • Avoid a home appraisal and inspection 
  • Work directly with the buyer – no middlemen 
  • Sell house in its current condition 
  • Get cash wired to you at closing 

To get a free cash offer on your house, contact 4 Brothers Buy Houses today. As long as your home hasn’t gone into foreclosure, you can sell it to us, and we’ll pay you in cash! You can then use this money to pay back your lender and start fresh! We buy houses all over Maryland, as well as Washington DC and Virginia! 

September 8, 2022

Who Pays Overdue HOA Fees at Closing?

If you’re planning to sell a property that is part of a homeowners association, you’ll need to consider a few things. The HOA is an important part of the community, as it directly influences quality of life within the neighborhood. HOAs enforce rules in a subdivision, maintain grounds and manage recreational facilities. 

In exchange for taking care of a community, residents pay their HOA a fee each month. Average fees are around $350 a year, though this can vary widely depending on where you live, the size of the community and the responsibilities of your HOA. When it comes time to sell your property, your HOA fees will need to be paid up. If they’re not, this will make it more difficult to sell. 

Because many communities throughout MD, VA and Washington DC are part of an association, it’s important to know about these fees, what happens if you don’t pay them and whose responsibility they are at closing. 

What are Homeowners Association Fees? 

HOA fees, association dues, HOA assessments, etc. are all fees that homeowners must pay to the association for the services it provides. Only those who live in a homeowners association pay these dues. Whether you plan to buy or sell a house in an HOA, it’s important that you understand how these fees work. 

Here are some of the amenities that HOAs typically cover: 

  • Maintenance services 
  • Common area utilities 
  • Security expenses 
  • Insurance premiums
  • Property management 
  • Grounds management 
  • Gyms, lounges and pools
  • Parks, playgrounds and trails 

What Happens if You Don’t Pay HOA Fees? 

Each household is responsible for paying their HOA fees on time. If people stop paying, this will affect your community as a whole. Your HOA won’t meet its budget, and this can cause your neighborhood to degrade. For example, your swimming pool or playground might not get repaired.

Fortunately, HOAs usually don’t sit around and wait for this to happen. They fine homeowners and may even put a lien on the property. Even lawsuits are possible. This is why it’s important that you pay your HOA bill each month. 

In fact, any remaining HOA debt is your personal liability. In most cases, you won’t be able to sell your property until the debt is cleared. Usually, this means using the money from your sale to pay the overdue fees. If the issue isn’t resolved before closing, the HOA can still attempt to collect their debts. 

Sell Your House – Even with Overdue HOA Fees

If you’re planning to sell your home in MD, VA or Washington DC, 4 Brothers Buy Houses can help. We have solutions for all types of real estate problems, including outstanding HOA fees. 

Because we pay cash for houses, you can use the cash from your sale to pay off these debts and walk away from your property free and clear. To discuss your options for selling a house with HOA debt, contact 4 Brothers Buy Houses today

August 15, 2022

Increasing Mortgage Rates and How They’re Affecting the D.C. Housing Market

Remember when mortgage rates were at their lowest point in 2020 and 2021? As a response to the coronavirus pandemic, the 30-year fixed rate fell to 3 percent for the first time and kept falling to a new record low of just 2.65 percent in January 2021. Fast forward to today, and interest rates are looking very different. They continue to increase, with the average 30-year fixed rate at 5 percent at the time of this writing. 

Let’s talk more about why mortgage rates are increasing in the D.C. area, how long we can expect them to trend in this direction and how the housing market will be impacted.

How Interest Rates Affect the Housing Market

Mortgage loans come in two main forms – fixed rate and adjustable rate. The interest rate is the amount charged by a lender to a borrower to use their assets. There are a number of factors that affect interest rates, such as the state of the economy. 

A country’s central bank sets the interest rate – in the U.S. it’s the Federal Reserve Board – and each bank uses this to set their APRs (annual percentage rates). Central banks tend to raise their interest rates when inflation is high because it helps bring inflation back down. High interest rates discourage borrowing and reduce consumer demand. 

Since inflation is increasing, the cost of everything is going up, and this includes mortgage rates. Even though interest rates are high right now, they are actually a good deal by comparison. The long-term average for a 30-year mortgage in Washington D.C. is around 7 percent. 

D.C. Mortgage Rate Predictions for 2023 

Some experts predict that mortgage rates will hover around 5 percent next year, while others say they expect rates to reach 6.7 percent by 2023 and 8.2 percent by 2025. If the latter does happen, it will be the first time that the average 30-year rate moves past 8 percent since 2000. 

Ongoing inflation is a huge concern for consumers and investors alike. The market is unpredictable, and there are many external influences that are affecting the U.S. economy, including the Ukraine/Russia conflict. 

Hopefully, mortgage rates won’t go up to 8 percent in the next few years, but it’s safe to say that they won’t be falling, either. Therefore, if you’re in the market to purchase a house or sell yours, now might be the best time to make these decisions. Otherwise, you could be working under much different circumstances. 

With Rising Mortgage Rates and Inflation – NOW is a Great Time to Sell Your D.C. House! 

Things are quickly changing in D.C.’s housing market. The market is slowing down and giving buyers more control, gradually shifting over to a buyer’s market. Consider that 40 percent of listings currently on the market in the D.C. area have undergone a price reduction. 

If you have a property that you want to get rid of, now is probably the time to do so. We will be moving into the winter months before you know it, and the market cools down considerably at this time. Right now, you can likely sell your Washington D.C. house for more money, in a shorter amount of time and with fewer buyer demands.

4 Brothers Buy Houses will pay cash for your D.C. house. We use our own money – no financing – which helps the process move quickly. We can start the closing paperwork once you accept our offer, and you don’t have to worry about appraisals, inspections, home improvements, repairs, closing costs or realtor commissions. 

Contact our team of cash buyers in Washington DC today to get a free cash offer on your house. It’s no obligation, so see if the numbers work for you!

April 30, 2022

What Options Do You Have After Mortgage Forbearance in Temple Hills?

A forbearance plan helps you with short-term hardships by reducing or pausing your payments for a temporary time. This way, you can get back on your feet while protecting yourself from delinquencies and foreclosure. But what some people forget is that 6 or 12 months comes quickly, and you’ll need to have a plan to repay your missed or reduced payments at this time. 

Let’s learn more about the different options you have after your mortgage forbearance plan in Temple Hills MD. 

Repayment Options Following a Forbearance Plan 

Before your forbearance plan ends, you should reach out to your servicer to see what comes next. Otherwise, they should contact you 30 days from the time your plan is set to end. The purpose of this conversation is to discuss your repayment plans. 

You do not have to pay everything back at once. Here are your options: 

Repayment plan

If you can afford it, you can repay a portion of the missed amount each month. This amount will be spread over a certain number of mortgage payments, and you must pay it when you pay your mortgage. Your mortgage will be higher during this time and return to regular once you pay everything back. 

Reinstatement

Another option you have is to pay the total amount missed all at once. The benefit of this option is that you can get back to your regular monthly mortgage payments instead of paying more each month. However, in order to make this work, you must have a lump sum of money available. 

Deferral

Also known as a partial claim, a deferral moves your missed payments to the end of your loan. This way, you can resume your regular mortgage payments without having to pay extra every month. The lender may also agree to put the missed payments into a subordinate lien that you can pay when you refinance, sell or terminate your mortgage.

Loan Modification

A loan modification can reduce your monthly payments permanently. After you make several payments under a trial period plan, your mortgage payments will be permanently reduced. However, it’s important to note that you might end up paying more over time because the loan will be extended, increasing what you pay in interest. 

Sell Your Temple Hills House for Cash – It’s Quick and Simple! 

Maybe you thought you would get back on your feet quicker than you have. Or perhaps you’ve realized that you can no longer afford your home. If this is the case, you can sell your house in Temple Hills for cash

4 Brothers Buy Houses will pay cash for your property! We buy houses in as-is condition, which means you are not responsible for repairs or improvements. There are also no commissions or fees, and we pick up most closing costs. 

Imagine what some cash could do for you? Contact our cash house buyers in Temple Hills today to get your free, no obligation cash offer! 

April 16, 2022

Is Mortgage Forbearance in Washington DC Right for You?

Mortgage forbearance in Washington DC is when your lender allows you to temporarily pay less on your mortgage or pause your mortgage payments due to a hardship. Forbearance does not erase or reduce the amount that you owe on your mortgage, but it does make it easier to work through your hardship at the moment. This way, you do not have to go into foreclosure. 

If you are currently going through a difficult time and can no longer afford your mortgage payments, it’s important to consider all of your options, including forbearance. 

What is Mortgage Forbearance, Exactly? 

Forbearance allows borrowers to pause or lower their monthly mortgage payments while dealing with a short-term crisis, such as a job loss or illness. This helps borrowers avoid delinquency and foreclosure. However, it’s important to know that mortgage forbearance in Washington DC is only a temporary situation. 

The great thing about mortgage forbearance is that it does not show up on your credit report. Your lender will still report you as current on your loan, even though you won’t be making your full payments. Borrowers also don’t have to pay any extra interest. Both the amount of interest and interest rate stay the same. 

How Can You Request Forbearance in Washington DC? 

If you’re facing a hardship, get in touch with your lender right away. Do not stop making your payments without talking to them first. Ask your mortgage lender about forbearance, as well as any other options that may be available to you. 

Forbearance is a rather complicated process. Your lender may require that you request assistance within a certain amount of time after the crisis. And, if you are approved, your mortgage payments will depend on several factors such as the type of loan you have and your servicer. 

The three options your lender may offer you are: 

  • Paused payments, paid during the existing mortgage. In this case, your servicer will allow you to stop making payments on your mortgage for about six months. After this time, you have to pay everything back. 
  • Paused payments, paid at the end of mortgage. If you’re worried about getting one big bill, you can also work with your lender to pay everything back at the end of the loan. You can also take out a separate loan. This option allows you to pause payments for 12 months. 
  • Reduced payments. This option reduces your monthly payments by half for three months. After the three months, you have a year to pay back the reduction. 

Alternatives to Forbearance 

Forbearance is a great option if you want to keep your home, and you’re confident that you’ll be able to pay back the missed payments. For example, if you lost your job but will be finding something comparable right away, forbearance will give you the flexibility you need.

However, if your situation is not temporary, you may want to consider other options. Loan modification, for example, changes the original mortgage terms permanently. You don’t skip payments, but rather pay less to make them more manageable. 

Another option is to sell your Washington DC house for cash. You can do this even with a forbearance plan in place. When you sell your home as-is, you get to keep the full offer. You are not responsible for making repairs or improvements, and you can use the money to help your current situation.

Get a Cash Offer from 4 Brothers Buy Houses 

4 Brothers Buy Houses purchase properties throughout Washington DC. We pay cash for homes and buy them as-is, with the whole process taking about two weeks. We even cover most cloning costs. Contact our cash house buyers today and see how much we’ll pay for your home! 

January 18, 2021

How To Sell A Home That Needs Renovations

Selling a home that needs renovations isn’t easy. You should make sure that the home is at least functional. Also, you may want to work with a real estate agent who has experience selling “as-is” properties. Selling your home for cash is another option. We have more info on what you should be aware of.

Selling a home that needs repairs or renovations can be quite the frustrating experience. After all, handling renovations is becoming more expensive every year. And renovations aren’t easy to get done during the Covid-19 pandemic. But if you are determined to finish renovations in order to sell your home, there are a few things you need to know. Let’s take a closer look into what you should prioritize if you are selling a property that needs renovations before it goes on the market. 

Choose Function Over Aesthetics

When thinking about renovations, people often prioritize aesthetics. But the truth is that they should be prioritizing function. If you have to choose, you want to make sure that the doors and windows are functional and that the plumbing and heating systems work. That is more important than putting down new carpet or painting a new wall. After all, many of the people looking at your property may already be aware that they’ll have to put some work into it. But they are more likely to be interested if your home is at least functional. They can deal with a new coat of paint themselves.

Understand What Not To Fix

This comes from the last point. If your home needs renovations, make sure that you understand that you don’t have to fix everything. The same goes for minor repairs that are needed. Fixing everything can be prohibitively expensive. You don’t need to fix every single appliance, or paint over every blemish. There are buyers who are looking to fix up properties like yours themselves, and they probably have their own ideas about which kinds of aesthetic changes they’d like to make. 

Work With A Real Estate Agent Experienced With Selling As-Is Properties 

Talk with a real estate professional who has experience selling all types of properties. They can give you a better idea of which renovations and repairs to focus on when selling a property as-is. Understand that your real estate agent probably knows more about the process than you do. So you should take their suggestions to heart when thinking about selling your property. Their recommendations on what to fix may be able to help you get additional value out of your property that you didn’t even know existed. 

Worrying about repairs and renovations can be an exhausting exercise. Handling the repairs yourself can be even more stressful. You don’t want to have to go through that process if you don’t have to. And you don’t. You can sell your property to 4 Brothers Buy Houses for cash and avoid worrying about repairs altogether. Give us a call and our team will provide you with a free, no obligation quote. All you have to do is contact us and we’ll get to work getting you the value that you deserve for your property.

September 23, 2019

The 4 Real Estate Terms That You Must Understand

When selling your property, it is important to understand several real estate terms. If you aren’t a real estate industry regular, than these terms may seem unfamiliar to you. That is okay–as long as you are familiar with these terms, you’ll be able to successfully navigate the sale of your property. You want to make sure that you understand things like escrow, equity, and due diligence. You probably already understand what showcasing (your property to new prospective buyers) means. You also probably understand what renovation means.

So let’s dive into the more complicated real estate terms.

Appraisal

An appraisal is when a professional determines the market value of your home. Typically, before you can take out a mortgage, the mortgage lender will send an appraiser to the property. The appraiser will determine if the property is worth the value of the loan, so that all parties are fully protected during the transaction. Appraisals are absolutely critical to the home sale process, and you need to understand how they work.

Escrow

When your offer to buy a home is accepted, then you’ll need to send a portion of the money to escrow. Escrow is a third party, which is often unbiased, which holds the money until a transaction is complete. Once the transaction is finalized, the money is released and the deed is transferred. Escrow agents often hold other documents as well, such as loan documents, and title insurance. 

Equity

Equity is a critical term for sellers and buyers. The equity you own in your home is the market value of the property less any existing obligations. Thus, if you bought a home for $300,000, and your mortgage has been paid down to $100,000, then you have $200,000 in equity. The more equity you build, the stronger your financial options will be. More equity allows you to finance loans for repairs or renovations.

Closing

Closing is the finalization of the home sale process. During the closing period, homebuyers typically do due diligence on things like home inspections. All the paperwork is finalized during this period as well, and the two parties will exchange the deed and the keys of the property. All money in escrow is released at this point, and the sale process effectively ends. Closing also entails certain costs, such as taxes and loan fees.

 

Worried about going through the traditional selling process? Worried about how you are going to showcase your home to new buyers, or how you are going to handle all of the aspects of repairing and renovating your home? The good news is that you don’t have to worry about any of this. You can sell your property to 4 Brothers Buy Houses and get the cash you need right away. Avoid the expensive and lengthy traditional selling process and sell your property on your terms. You can get a free, no obligation quote at any time. Call us today.