“We Buy Houses”.  Everybody has seen the signs, the TV ads, maybe even heard a radio spot at one point or another. It seems simple enough, a happy family standing on their front lawn next to a run down heap you wouldn't let your dog walk through, then the house disappears and lots of greenbacks are in the previous owner's hands. Poof!! They all seem to be some variation of the same scheme, but anyone who has been called on by someone from the "We Buy Houses" crowd will know the experience is often much different. While we at EHS also specialize in many of the same areas WBH'ers do, we make a distinct effort to distance ourselves from that genre as much as possible. We endeavor to bring professionalism and ethical behavior to an industry which is otherwise riddled with nefarious characters out for one thing: your money.

Why EHS? At EHS, we specialize in assisting in a few niche areas that can be of assistance to the distressed homeowner. We provide you with as much information as possible, and we are always very open about what we are doing and why. We are honest and forthcoming, never manipulative or secretive. We genuinely have your best interests in mind and we frequently perform services at little or no charge. If we cannot assist you, we will let you know early on in the process. If we think there is someone else that can assist you better than we can, we will let you know and/or refer you to them. We are constantly working to provide a win-win solution to your financial problems.

Here's when we can help:

Foreclosure. Call us early!! If you know you are about to be unable to pay your mortgage, let us know. More importantly than that, let your lender know. Lenders servicing Fannie Mae loans are required to offer workout assistance to borrowers. It is at this point that things start to get very time sensitive. You may still have time at this stage to sell through a real estate agent, which is by far your best option if you can afford to do so. We do not recommend signing a listing agreement that extends to your foreclosure court date, as that may significantly limit your options.

When You Really Need EHS. If you owe more than the property is worth, you need EHS. Nobody, that is NOBODY, will be able to help you better than EHS. We specialize in debt negotiations. Remember, just because someone else has tried and failed, does not mean we will do the same. The process we will engage in is called "short selling" the loan on which you have become delinquent. We are not selling bankruptcy services or credit repair. We make money by negotiating your debt down to a level whereby we can purchase the property at a steep discount, rehab the property, and then either rent it to a tenant or sell the property outright at market rates months or years from now. Often this requires a significant amount of capital to make happen and involves a significant risk on our part. We DO NOT recommend you attempt the short sale process.

First of all, lenders tend to deal with third parties from a negotiation standpoint much better than the borrowers. If you are delinquent on your loan, simply trying to contact anyone other than the collections department is nearly impossible. Second of all, we deal with short sales on a regular basis and understand the process intimately. When you deal with the lender directly as an individual, you are engaging in a negotiation with a party who knows significantly more about the process than you. It is not always in the best interest of the bank for you to reduce your debt and sell your house.

Reduce My Debt? Is This Legal? Yes, it is perfectly legal. It is simply a negotiation between lender and borrower regarding a defaulted debt. There are, however, some unexpected consequences that can come from the short sale if improperly negotiated. Keep an eye out for the two most problematic outcomes:

• Deficiency Judgment. A deficiency judgment can be awarded to the lender for the difference between what you owed and what you paid. This means the lender has agreed to let you pay them less to allow you to sell the house, but you will still have an unsecured debt with them which they have the right to pursue in or out of court. This does not always happen, and this is why you should always speak with a competent attorney to ensure you are aware of the consequences.  Our goal is to always have the lender waive the deficiency judgment. If they will not, we  will contact you to let you decide whether we move forward or not.
• 1099 Taxable Event. The IRS could consider your debt reduction as income and want you to pay income tax on the amount by which they reduced your debt. The lender will send you a 1099 form showing that reduced amount as income which you will have to report on your tax return. Again, this does not always happen, but you should certainly speak with both an attorney and your tax advisor regarding this possibility.

Unwanted Rental Property. Many people enter into the real estate game half-heartedly and end up losing interest after a few years. They are stuck with rental property that is a difficulty to manage if it has tenants currently under lease, or costing them a fortune if not. Some people buy property intending to manage themselves, but then move out of town and can no longer manage that property with any degree of financial plausibility. We can assist these landlords by purchasing their properties with problem tenants, severe deferred maintenance, and/or numerous encumbrances on the property. We are proficient at property management, rehabbing property, and dealing with lienors. Because of our expertise in these areas, we can purchase properties that others cannot.