What is a Pre-Foreclosure in Harrisburg?

May 17, 2019

By Jorie Aulston

With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.

So what is a pre-foreclosure in Harrisburg anyway?

Many homeowners across America and Harrisburg are facing difficulties making their monthly mortgage payments.

When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”

Banks and mortgage lenders typically provide three months for the homeowner to become current.  Of course this number can vary by bank and situation sometimes.

If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.

Pre-foreclosure Options for Borrowers

If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender.

This document will state that you have not made mortgage payments for the last 90-180 days. It’s important not to panic.

You have options that can delay or even prevent losing your home:

• If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments.  Check with your local Harrisburg mortgage broker… or contact us and we can connect you with a reputable one.
• You may be able to quickly sell your home to a real estate investor that’s reputable in Harrisburg like us at Respected Home Buyer, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your Harrisburg PA area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
• You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off.  In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
• You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.

Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time.

If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating.

A foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender.

But if you’re not able to find a solution with your lender working directly with them… connect with us. We may be able to help.

Ways We Can Help If You’re In Pre-Foreclosure

• We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
• We can buy your Harrisburg area house – We buy houses in Harrisburg and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
• You can ask us questions and we can provide you FREE guidance and resources so you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.

If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation.

Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options? Call Us at 717-276-9955

We Buy Houses in Harrisburg Companies – Are They Credible?

April 5, 2019

By Jorie Aulston

If you have been driving around in Harrisburg, likelihood is you have seen some billboards advertising companies that buy homes.

Often times they assert things like “We buy Harrisburg Houses!” or “Cash For Your House”.

Are These “We Buy Houses in Harrisburg Companies” Credible?

“How do i know if the local house buying companies out there are honest and credible?”

Well… generally all of them look identical at the beginning… however, below we’ll walk you thru some things to look for in a local house buying company before you must work with them.

Buying and selling homes is a valid and respectable profession which will assist communities and house sellers in some ways. However similar to any other line of business – a minority of house buyers in any market are those who make the remainder of us look bad.

There are folks that are extremely nice, moral people who improve their neighborhoods one property at a time.

And then there’s shady, dishonest people that place cash before the well being of their clients and who would sign the contract to sell their own granny with one hand while stabbing you in the back with the opposite – as long as they were creating enough cash.

Yes, they’re out there.

We’ll assist you avoid these “shady house buyers” so you’ll be able to work with honest, ethical, and honorable local companies who can purchase your house for a fair all cash offer and close on your schedule.

But let’s not target the negative – at least not yet.

First, let’s cover precisely what the most effective house-flippers do

What Reputable Harrisburg House Buyers Are Doing

• Helping folks improve their lives by accessing the cash they need right away.People usually would like the cash in their house to cover unexpected medical expenses, or to relocate to be close to a relative. We will make that happen in only a couple of days, and we deliver peace of mind.
• Helping sellers get rid of a burdensome property without the hassle of having to list it with a broker and wait months and month for a sale.
• Creating local jobs. We hire plumbers, contractors, electricians, brokers, title reps, loan officers, administrators and plenty of other people along the approach. The typical property transaction involves eighty-six individuals from beginning to end. Our investments create real jobs for individuals around Harrisburg PA.
• Buying US products. We spend a lot of cash on materials that are made right here within the USA – that creates jobs in our timber mills, factories, supply shops, distribution centers and more. The U.S. economy depends on steady improvement, which requires investment from folks like us.
• Increasing the value of Harrisburg neighborhoods. After we improve a house, we’re helping to increase the value of the whole community. We frequently repair abandoned and neglected homes, turning them into lovely homes for families. That activity strengthens Harrisburg.
• Increasing the tax base.  Once a brand new buyer takes over one of our properties, they’ll pay a higher tax rate based on the new and improved value. Those taxes go to pay for our colleges, fire, police, libraries, streets and other valuable pieces of infrastructure. Again, improving our neighborhoods.

Pretty cool stuff, right?

Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly “reality” shows that amp up the drama because the reality of what we do on a daily basis is actually pretty boring.

Most of our work is coordinating with lots of people to make sure things are happening on time. We have to keep track of lots of moving parts.

So let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house buying scam.

How To Ensure You’re Working With A Reputable Local House Buyer

When you speak with an area house buyer to potentially purchase your house… raise them some of the questions below to confirm they are reputable , knowledgeable, and honest.

Ask open-ended questions like:

• How do you help your clients?
• What do you do for people?
• Can you tell me additional information regarding your services?
• What aspect of your business causes you to be the proudest?
• How would you describe your investment philosophy?
• How can I know that you’ll close on my house when you say you will?

Second, look for tell tale signs of tactics that those few shady operators tend to use.

• “Kitchen table closings” – If a property buyer tries to urge you to sign the deed (ownership) of your house over to them at your house, instead of a professional place like a closing lawyer or title company… be leery. Most reputable house buying services will perform the actual closing of the sale at a neutral third party place… like a title company. This ensures everything is completed right and on the up and up.
• Pressuring you into a fast closing – If a house buyer tries to pressure you into selling your house and says that you have to make the choice today, be leery. Most respected house buying services will make you and offer and that offer will be on the table for a minimum of 2-7 days (minimum) for you to make a decision. The reason respected house buying services like ours at Respected Home Buyer do place deadlines on our offers is because the market changes and values can change week to week depending on other sales within the area, also… we have a tendency to buy multiple homes a month and after we make you a proposal we’re assuring you that the money to purchase your home is ready and we’ll reserve that cash for several days so if you do want to sell your house, we will close on your schedule. If you’re feeling the offer is not a suitable you, then we’ll assign those funds to assist another seller with their home sale.
  Most scammers are looking for a quick score, and not an in-depth interview.
  Chances are good that they’ll find excuses to get off the phone and march on to someone who doesn’t raise too several questions.
  True investors who run honest and ethical Harrisburg house buying services, however, are building long-term businesses supported relationships and community development.
  So once you’re looking at one of the “we buy homes in Harrisburg companies”… never be afraid to raise questions!

Shut Up & invest Podcast Final 4 Edition

Buying You Dream Vacation Home

Buying Your Dream Vacation Home

Written by Guest author Jim Mckinley from Money With Jim 

Photo credit by Pixabay

Buying Your Dream Vacation Home

If buying a vacation home is on your retirement wish list, you may be eager to jump in and get started. Before you start viewing properties, you should plan ahead to make sure you’re well prepared for this investment.

Before Buying Your Home

First off, you’ll need to do some research before buying a vacation property. Decide how often you’ll reside there – more or less than 50 percent of the time? You also need to decide what to do with your home when you’re not there. Will you rent it out or close it down?

There are also going to be special considerations, particularly for insurance costs, if you primarily want your home to be a rental property. According to US News, that means you might pay a higher interest rate on the mortgage. Either way, you need to make sure that you have the appropriate income to support not just the mortgage, but insurance, property taxes, and maintenance throughout the year.

Once you’ve made these decisions, you can start researching locations and costs. If it’s truly a second home for you, you might want to invest in a home more like your current one. Ameritrade lists more considerations you should think about, such as financing and your long-term plan for this home.

Keeping Costs Down

Buying a vacation home comes with additional expenses you might not have considered. You’ll need to review taxes and insurance plans that are specific to these homes, as well as maintenance costs for while you are gone.

Property Taxes

If you are not planning on renting out your home, then taxes will be similar to your current home. However, if you rent it for more than 14 days out of the year, you must report your income. That tax is also affected by how long you personally stay in the home. In fact, according to Investopedia, a second home does not necessarily have “easy write-offs from the IRS.” Additionally, tax rules that apply to second homes have changed more often than rules for first homes. Get more details on vacation home tax rules from Kiplinger.com.

Insurance Costs

Insurance costs can be higher either because the house is unoccupied for much of the time or because you are renting it out. According to Bankrate.com, both of these put the home at greater risk of damage and/or theft. You might also need to purchase additional insurance. For example, you’ll need flood insurance if you are buying a home near the water or in a flood zone.

You can save on your premium by installing a quality security system, according to Value Penguin, and you may also be able to save by bundling your insurance. The New York Times offers a comprehensive guide on insuring a second home.

Maintenance

A second home still requires care and maintenance when you are not around. You may need to prepare for seasonal changes, such as caulking leaks and securing weather stripping. Alternatively, you can hire a property manager or local staff to look after the property. This is especially useful if you plan to rent out the property, as you’ll need someone to help with cleaning between guests, handling regular maintenance (think changing air filters, washing bed linens, cleaning out the dryer vent) and generally keeping an eye on your second home.

Moving

If you’ve got furniture and decor you want to move from your primary residence, you’re going to have to plan to get your items from Point A to Point B. If you’ve only got enough to fit in a trailer and can bring it yourself, that’s great. Otherwise, you’ll need to plan for the cost of movers. Look for additional ways to cut costs when it comes time to moving. Some people opt for the hybrid method where they rent the truck themselves but hire movers to clear it out. This can help put more money in your pocket to put toward other home necessities.

Selecting A Home

Once you are sure you have the budget for all these eventualities, it’s time to start researching vacation homes. Keep in mind that the more amenities the home has, such as a swimming pool, the more it may cost to insure. Again, location is important, particularly for insurance costs, so seek out home pricing in your desired location. For example, if you’ve got your heart set on Florida but aren’t sure where, start looking at average costs for popular cities to see what could work best for your budget and lifestyle.  

Once you’ve selected a home or area, take stock of everything needed for this investment.

Buying a vacation home is the dream of many retirees, but it can be a challenge to budget properly for this expense. Commit to due diligence to ensure you’ve got all your bases covered so you can comfortably find the right property to enjoy for years to come.

Note Investing w/ Guest: Jorie Aulston | Roughneck 2 Real Estate

Sell Your House Harrisburg-We Buy Houses Harrisburg

A Buyers Guide To Lease Option Properties in Harrisburg

Do you want to buy a home but you aren’t quite ready? If so, a lease option may be the opportunity you have been looking for. Learn more about lease option properties and how they can help you reach your real estate goals! 

Using a lease option is an excellent solution for would-be buyers. Maybe you have a blemish on your credit or maybe you don’t have quite enough saved up for a down payment. Using a lease option, or rent to own structure will allow you to lease a home, with the option to buy or walk away after the lease term is up.

How It Works

The agreement itself is often similar to a rental agreement with an option to buy at the end of the term. That said, there are some key differences to be mindful of, such as your responsibility to make repairs, and a higher than average rent payment each month.

What You Will Have To Do

You will always want to have a thorough inspection of the house done before signing the agreement. This will give you a heads up on any future repairs you will need to make. Some repairs are very expensive and you may not be comfortable taking on a property with such large issues. You should also have a professional appraisal of the house done. This will ensure that the price the seller is asking is fair, and will be approved by a lender in the future. You never want to skip an inspection or an appraisal just to get a shot at buying a home.

Also, as mentioned above, you will be the one responsible for repairs as opposed to the owner of the home. You will also need to pay the property taxes according to some agreements. These extra expenses, plus the typically higher than average rent, can slow you down if you are saving to buy the property in the future. Keep these costs in mind before signing an agreement.

The Benefits

There are several benefits to entering into a lease to own agreement with a local seller. First of all, you will be able to find and secure a house before you have the down payment together or before your credit will qualify for a loan. These are both things that should be taken care of during the leasing period of your agreement. You will also have a locked in price, so if the market goes up over the course of the agreement, you will only need to pay what was agreed upon originally. Just watch the market beforehand. You don’t want to enter into an agreement in an area where homes are actually decreasing in value.

Another great benefit is having the ability to “test drive” the house. You can really get a sense of what it will be like to own, before actually being the owner. You can determine your monthly maintenance and ownership expenses, and take a good look at commute times and area schools. You will be able to make sure that the neighborhood is really right for you, eliminating any chance of buyer’s remorse once the sale date arrives.

You will also have the peace of mind in knowing that you have the guaranteed option to buy the house. You won’t need to pick up and move at the end of the lease term so long as you are able to get the financing you need, as well as the down payment. Your credit should also be restored, allowing the buying process to run smoothly for you.

One great trick is to find a property that has been listed for a while and purpose a rent to own agreement. They will not need to lower their price, and you will get the opportunity to buy a house you love.

Ready to learn more about lease option properties in Harrisburg? Get in touch with Respected Home Buyer today! 717-219-7454!