What is a Short Sale? Why do it?
A Short Sale is when the lender of record agrees to discount their payoff on the sale of a house when:
The borrower has experienced hardship and is unable to repay the mortgage.
The value is proven to be less than the amount needed to pay off all loans, encumbrances and real estate selling costs.
The loan is delinquent or in default.
Often a house in which the proceeds of a sale will fall short of what the home owner still owes on the mortgage, lenders will accept the lesser proceeds as a short sale. By doing this the lender forgives the balance of the mortgage and thereby avoids a lengthy and costly foreclosure procedure.
How do Sellers Benefit from a Short Sale?
The seller can avoid having a “foreclosure” on their credit report. Most lenders tend to report “settled” upon successful closing of a short sale.
Assuming the seller is already not making mortgage payments, they can continue to live in the property and not make payments during the lengthy short sales
Most sellers feel it is the “right thing to do” when in default. They tend to feel that walking away from the house is irresponsible. It’s a respectable option
Tuesday, November 1, 2011
Wednesday, October 26, 2011
Things to Consider When Purchasing a Home
There are many issues to evaluate when considering a home purchase including what you can afford, what kind of loan best suits you, the property itself and once you find your dream house, how much you are willing to pay for it.
How Much Can You Afford?
Before starting your search for a home, you must decide how much you can afford. Generally speaking, it is recommended that the down payment be a minimum of 5-20% of the purchase price. In addition, there are two other standard thresholds to consider in terms of how much of your monthly income should be spent on housing.
• Your total housing costs (mortgage, interest, property taxes, insurance) should not exceed 28% of your income.
• The combination of your housing costs and all other monthly debt (car loans, student loans, etc.) should not exceed 36% of your income.
There are many issues to evaluate when considering a home purchase including what you can afford, what kind of loan best suits you, the property itself and once you find your dream house, how much you are willing to pay for it.
How Much Can You Afford?
Before starting your search for a home, you must decide how much you can afford. Generally speaking, it is recommended that the down payment be a minimum of 5-20% of the purchase price. In addition, there are two other standard thresholds to consider in terms of how much of your monthly income should be spent on housing.
• Your total housing costs (mortgage, interest, property taxes, insurance) should not exceed 28% of your income.
• The combination of your housing costs and all other monthly debt (car loans, student loans, etc.) should not exceed 36% of your income.
Friday, July 15, 2011
Wednesday, July 13, 2011
Selling Tip. De-Clutter!
we collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it. I know maybe someday you will need it, but moving time is let go time.
If you don't need it, donate it or throw it away?
Think of this process as a head-start on the packing you will eventually need to do anyway.
we collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it. I know maybe someday you will need it, but moving time is let go time.
If you don't need it, donate it or throw it away?
Think of this process as a head-start on the packing you will eventually need to do anyway.
Subscribe to:
Posts (Atom)