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Advantages of Short Sales
Selling your home… The Short Sale
A short sale in real estate occurs when the outstanding obligations (loans) and cost of selling are greater than what the property can be sold for. Short sales are a way for a home owner to avoid foreclosure and still be able to pay off their loan(s) by settling with their lender(s). However, the terms under which a lender approves a short sale depend on the borrower s circumstances as well as the lender s specific guidelines.
The ideal candidate for a short sale is one where:
1. The payment is delinquent or could be in the foreseeable future. Many lenders will not work
with home owners who are successfully making their loan payments. It is best to check with
your lender on their specific policy.
2. Have a qualifying hardship. Examples that qualify are divorce, loss of a job, medical bills,
reduction in pay, etc. .
3. Have no major assets (401Ks or IRAs are typically an exception unless sizeable). Lenders who
see home owners with large bank accounts or assets may in some cases require the borrower
to financially contribute to settle a portion of the debt in a short sale.
Like most guidelines, these criteria are in constant flux and depend on your particular circumstances. Please feel free to contact us to discuss your unique situation.
Many homeowners can successfully complete a short sale if they:
1. Begin a soon as they are about to go delinquent on the loan
2. Complete the necessary paperwork and
3. Hire a competent real estate agent to handle the sale.
Some agents charge an upfront fee to take on the task of a short sale. We do not.
The primary benefits of doing a short sale are, first protecting your credit. While both the short sale and foreclosure will affect your credit, a foreclosure will greatly impact your ability to purchase a home in the future. Fannie Mae has announced changes that went into effect August 1st, 2008.
You cannot purchase a home under the following guidelines and time frames using Fannie Mae Conventional financing:
* Pre-Foreclosure (short sale of home); 2 year
* Deed in lieu of foreclosure; 4 years
People who foreclose will have the following Fannie Mae restrictions placed on them:
* 5 year time period from date of foreclosure completion in which you cannot
obtain financing, after which you can finance with a minimum of 10% down and a credit
score of 680.
* 7 year time period from completion to finance a second home or investment property.
* 7 year time period from completion to take cash out of a refinance on any property
regardless of occupancy.
Additionally, some employers will not hire or retain an employee who has foreclosed on a home.
The emotional impact to borrower who has a foreclosure cannot be underestimated. Despite the time involved in doing a short sale, there is an emotional benefit to doing the “right thing”. Also, where a homeowner has continuing liability for a loan (such as a Home Equity Line of Credit) after foreclosure, the borrower can take some measure of control and mitigate the loss with a short sale.
Should you elect to proceed with a short sale, we are ready to assist you in any we can. Most lenders have customized packages that will need to be completed. We can help you get started today!
Insurance >Your Life Preserver
Title insurance is like a life preserver on a boat. You will probably never need it, but if you do, you will be very glad that it is there! How does title insurance work, and how does it protect you in the home buying process?
A title search will be ordered before you buy a home, to make sure that the sellers legally own the property, and that no one else has a legal interest in the home. The title company will also check through the ownership records for any liens, easements or other encumbrances on the title. This search should turn up any transactions that may not appear on the public record, such as an unsound transfer that occurred many years ago. Title insurance protects you against future claims against your home.
Your real estate agent can give you more specific information about the cost of title insurance and the types of coverage available in your area.
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| Q |
What weighs 320 tons and is considered the largest single block building?
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| A |
Pyramid of Mycerinus (Third Pyramid) at El Gizeh, Egypt is the largest single block building and the world's oldest pyramid. |
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