I've been posting a lot of Real Estate related things on my blog lately, but decided today to do a health one. As many of you know, I am on a weight loss "journey". I think many times we can draw strength and ideas from others. I really enjoyed this article in the latest Redbook Magazine, especially the author's memo. I have the link to the entire article at the bottom. Hope you enjoy this has much as I did!!
** I found this in the latest Redbook Magazine. It was this great
article about a gal who while losing weight decided to write
songs "skinny songs" to help motivate. She's sold tons of her cd. I
really liked this memo she wrote to herself:
HEIDI'S MEMO TO HERSELF: IN CASE OF EMERGENCY
You've just consumed a whole bunch of calories you didn't need. You
slipped, you splurged, and you hate yourself for it. What now? Give
up? Eat some more? I think you deserve better than that. Here's what
I want you to do:
1 Forgive yourself. No one is perfect. Stop kicking yourself.
Everyone who has succeeded has had moments like this. You can still
succeed too, but you must stop yelling at yourself and simply say, "I
forgive myself for the mess-up."
2 Put it in perspective. Even if you ate 1,500 calories in a single
sitting, it is not a deal-ending amount. You have not permanently
ruined your life. You have an extra half a pound to get rid of. Big
deal.
3 Reaffirm your bigger goal. Remind yourself about the importance of
the goal you have set out to reach and recommit yourself to working
to achieve it. Look at the dress you ripped out of the magazine, or
imagine yourself bounding up a flight of stairs in a black tracksuit.
Just because you ate a quart of ice cream doesn't mean you can't meet
your overall goal.
4 Eliminate the temptation. I don't want to waste food, but sometimes
the rest of the bag or carton needs to go down the garbage disposal.
This is one of those times.
5 What can you learn from this? Take a step back and see if there is
something that will help you overcome future moments like this. Did
you deprive yourself so much that you were overwhelmed with hunger?
Did you get mad and eat out of emotion? Think about what you can do
to avoid this trigger or situation next time.
6 Don't punish yourself. Don't starve yourself. Don't go on a cabbage-
soup fast. Punishment doesn't work; it just perpetuates a bad cycle.
7 Recommit to lose. Say out loud, "I'm over it, and I'm back on my
plan." Imagine yourself standing up, dusting yourself off, and
getting back on a horse. Hold that visualization for a moment and
feel great about that decision. Feel proud that you can recover so
quickly. Now forget it and move on! You are back on track.
You can find the entire article at: http://www.redbookmag.com/health-wellness/losing-weight/weight-loss-songs?click=main_sr
Tuesday, February 24, 2009
Thursday, February 19, 2009
How to save on Home Repairs
Have I ever mentioned how much I love my subscription to Real Simple Magazine?? If not, I do. :) In almost every issue I find SOMETHING that I cut out and save for later. Sometimes these articles get put in a pile and I forget about them for months and months...but I still save them! Well, I'm looking through that pile right now and found a few good suggestions that I wanted to share!!
In the January 2009 issue (see, I'm only a month behind!), They had a Moneywise segment on "how to save on home repairs". Here's what they had to say:
- Get free DIY advice. Go to www.youtube.com and type in "ask the builder" for how-to videos on simple procedures like replacing a faucet or a light fixture.
- Be Flexible. Ask a tradesman if he has a hole in his schedule, then inquire about a discount if you book during that time.
- Learn the lingo. Before calling a contractor, check out sites like www.moneypit.com and diynetwork.com. You'll be better informed - and less likely to get taken - if you can speak his language. (Jodi's Memo: If you haven't see the movie Money Pit, you should rent it before doing any major renovation...nothing can go as bad....)
-Don't succumb to "Your roof is falling" tactics. If your basement floods, say, a cash-hungry contractor might try to talk you into a drainage system that costs around $7,5000. But in the majority of situations, you can guard against indoor deluges just by cleaning and extending gutter downspouts and grading soil away from the foundation. (Jodi's Memo: This TOTALLY happened to one of my clients and they DID NOT go with the drainage system! And the house is still standing!)
The article also made some monthly checks you should do around the house. I will try to update these monthly :) Since it's already February...I'll also give you the advice for January as well!
January:
- Test your home for radon. A radioactive gas that causes lung cancer, radon can build up when windows and doors are sealed tight. So January, the coldest month, is an optimal time for an annual test, says Elias Rodriguez, an EPA spokesman. Visit epa.gov/radon (Jodi's Memo: I can suggest radon testing companies and someone to mitigate..I had this done on my own home!)
-Make sure your attic insulation is doing the trick. If snow melts off the roof soon after it falls, or if icicles form even when temperatures remain consistent, too much heat may be escaping from your home. If so, call a contractor.
February:
- Check your sump pump. do this now, before the first spring thaws or March, when melting snow and rain showers can cause basement flooding. To test, pour two gallons of water into the drain to raise the float and activate the motor. It should stop running once the water level drops below the activation level.
-See if your gas meter is iced over. On average, February is one of the snowiest months of the year. According to managemyhome.com, accumulated ice on the meter can cause it to malfunction and create a gas leak. If the meter is iced over, contact your gas utility. (Chipping off the ice yourself can damage the unit)
In the January 2009 issue (see, I'm only a month behind!), They had a Moneywise segment on "how to save on home repairs". Here's what they had to say:
- Get free DIY advice. Go to www.youtube.com and type in "ask the builder" for how-to videos on simple procedures like replacing a faucet or a light fixture.
- Be Flexible. Ask a tradesman if he has a hole in his schedule, then inquire about a discount if you book during that time.
- Learn the lingo. Before calling a contractor, check out sites like www.moneypit.com and diynetwork.com. You'll be better informed - and less likely to get taken - if you can speak his language. (Jodi's Memo: If you haven't see the movie Money Pit, you should rent it before doing any major renovation...nothing can go as bad....)
-Don't succumb to "Your roof is falling" tactics. If your basement floods, say, a cash-hungry contractor might try to talk you into a drainage system that costs around $7,5000. But in the majority of situations, you can guard against indoor deluges just by cleaning and extending gutter downspouts and grading soil away from the foundation. (Jodi's Memo: This TOTALLY happened to one of my clients and they DID NOT go with the drainage system! And the house is still standing!)
The article also made some monthly checks you should do around the house. I will try to update these monthly :) Since it's already February...I'll also give you the advice for January as well!
January:
- Test your home for radon. A radioactive gas that causes lung cancer, radon can build up when windows and doors are sealed tight. So January, the coldest month, is an optimal time for an annual test, says Elias Rodriguez, an EPA spokesman. Visit epa.gov/radon (Jodi's Memo: I can suggest radon testing companies and someone to mitigate..I had this done on my own home!)
-Make sure your attic insulation is doing the trick. If snow melts off the roof soon after it falls, or if icicles form even when temperatures remain consistent, too much heat may be escaping from your home. If so, call a contractor.
February:
- Check your sump pump. do this now, before the first spring thaws or March, when melting snow and rain showers can cause basement flooding. To test, pour two gallons of water into the drain to raise the float and activate the motor. It should stop running once the water level drops below the activation level.
-See if your gas meter is iced over. On average, February is one of the snowiest months of the year. According to managemyhome.com, accumulated ice on the meter can cause it to malfunction and create a gas leak. If the meter is iced over, contact your gas utility. (Chipping off the ice yourself can damage the unit)
Wednesday, February 18, 2009
Stimulus Bill & Tax Credit
By now I'm sure most of you have heard about the new Stimulus Bill & Tax Credit that was just signed. I really think this will be a POSITIVE thing for everyone, especially the Real Estate Market! Yeah!! Here is what The Kansas City Association of Realtors has to say about it. Also look for their ad to appear in this Sunday's Kansas City Star (or click the link to see it below!)
The economic stimulus bill we’ve all heard so much about in the last few weeks was signed into law yesterday. Officially known as the “American Recovery and Reinvestment Act of 2009,” the bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included.
Learn more by viewing NAR President McMillan's video podcast or read more about the housing provisions in the bill. Additionally, the NAR Chief Economist, Lawrence Yun, has posted a commentary summarizing more information on this important legislation.
The tax credit for first-time home buyers, up to $8,000, is an important aspect of the bill for all REALTORS®. It’s a significant improvement over the $7,500 credit included in TARP 1 last year, especially in that it is not repayable. Click here for a chart with the major modifications for the first-time home buyer tax credit.
Promoting this tax credit, and the incentive it brings first-time buyers to contact a REALTOR®, will be a central message in the KCRAR Public Awareness Campaign this spring and summer. This ad will appear for the first time in the Sunday Real Estate section of The Kansas City Star on March 1. A column by Chris Collins, ABR, CRS, GRI, 2009 KCRAR President, will appear on the cover of the Saturday Real Estate section in The Star on March 14. And additional print and online placements are being planned now. So stay tuned for more!
The economic stimulus bill we’ve all heard so much about in the last few weeks was signed into law yesterday. Officially known as the “American Recovery and Reinvestment Act of 2009,” the bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included.
Learn more by viewing NAR President McMillan's video podcast or read more about the housing provisions in the bill. Additionally, the NAR Chief Economist, Lawrence Yun, has posted a commentary summarizing more information on this important legislation.
The tax credit for first-time home buyers, up to $8,000, is an important aspect of the bill for all REALTORS®. It’s a significant improvement over the $7,500 credit included in TARP 1 last year, especially in that it is not repayable. Click here for a chart with the major modifications for the first-time home buyer tax credit.
Promoting this tax credit, and the incentive it brings first-time buyers to contact a REALTOR®, will be a central message in the KCRAR Public Awareness Campaign this spring and summer. This ad will appear for the first time in the Sunday Real Estate section of The Kansas City Star on March 1. A column by Chris Collins, ABR, CRS, GRI, 2009 KCRAR President, will appear on the cover of the Saturday Real Estate section in The Star on March 14. And additional print and online placements are being planned now. So stay tuned for more!
Monday, January 26, 2009
Real Estate Myths
If you watched The Today show this morning, they had a Real Estate expert talking about the top 5 (buyer/seller)Real Estate Myths. I didn't actually get to see the segment, but they are good. My favorite is about buyers waiting until the market bottom's out. Well, you don't know if the market is at the bottom, until it's started to go up! So, if you are waiting for the market to hit bottom, you may actual miss out!!
Below are the Myths they talked about:
The truth about the housing market
In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.
Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
Buyer myth No. 2: The sellers today are desperate.
Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.
Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.
Buyer myth No. 4: You need good credit to get a good loan.
Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit
Buyer myth No. 5: You shouldn't buy before prices have bottomed.
You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.
Seller myth No. 1: Now’s the absolute worst time to sell.
Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.
Seller myth No. 2: Never respond to a low-ball bid.
All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.
Seller myth No. 3: The first offer is never the best offer.
Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.
Seller myth No. 4: 'I can always reduce my price later.'
Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.
Seller myth No. 5: Before you refinance, shop around.
You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs
to watch the video: http://today.msnbc.msn.com/id/26184891/vp/28854109#28854109
Below are the Myths they talked about:
The truth about the housing market
In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.
Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.
Buyer myth No. 2: The sellers today are desperate.
Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.
Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.
Buyer myth No. 4: You need good credit to get a good loan.
Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit
Buyer myth No. 5: You shouldn't buy before prices have bottomed.
You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.
Seller myth No. 1: Now’s the absolute worst time to sell.
Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.
Seller myth No. 2: Never respond to a low-ball bid.
All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.
Seller myth No. 3: The first offer is never the best offer.
Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.
Seller myth No. 4: 'I can always reduce my price later.'
Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.
Seller myth No. 5: Before you refinance, shop around.
You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs
to watch the video: http://today.msnbc.msn.com/id/26184891/vp/28854109#28854109
Thursday, January 22, 2009
Sweat plus sacrifice equals success
As many of you know, I'm on a major workout kick. In a typical week, I workout 6 times. It's "me" time. I may not always be enjoying myself while I'm doing it, but I feel great afterwards and know I'm doing something good for my body (physically and mentally).
I started taking a weights class on Tuesday nights last week. It's a killer!! It's 1.5 hrs long (the last 30min is abs/back) and it is NON-stop!! I am usually shaking at the end...but I know I've gotten a good workout. At this weeks class, she mentioned how she gives out "thoughts of the day" to her other classes. This weeks thought was "Sweat plus sacrifice equals success". My first thought was...that is great, I'll make it my facebook status! (which I did) But the more I thought about it (it's much easier to think about something when doing weights then you don't concentrate on your muscles hurting!) I realized how great it was. It doesn't just relate to working out, but to life. Success doesn't just come...you have to work for it! Sometimes that takes sweat and sacrifice. What a great thought of the day! Thanks Jennifer!!
I started taking a weights class on Tuesday nights last week. It's a killer!! It's 1.5 hrs long (the last 30min is abs/back) and it is NON-stop!! I am usually shaking at the end...but I know I've gotten a good workout. At this weeks class, she mentioned how she gives out "thoughts of the day" to her other classes. This weeks thought was "Sweat plus sacrifice equals success". My first thought was...that is great, I'll make it my facebook status! (which I did) But the more I thought about it (it's much easier to think about something when doing weights then you don't concentrate on your muscles hurting!) I realized how great it was. It doesn't just relate to working out, but to life. Success doesn't just come...you have to work for it! Sometimes that takes sweat and sacrifice. What a great thought of the day! Thanks Jennifer!!
Wednesday, January 21, 2009
Short Sales vs Foreclosures
With a lot of homes going into Foreclosure or up for a Short-Sale, I thought I would share a little information about both procedures and the affects on your credit. I have taken a few courses on this matter. I hope this information helps. Please let me know if you have any questions.
And remember, NOT everything in the market is a foreclosure or short sale!
The following article is from about.com and written by Elizabeth Weintraub
(http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm)
Sellers may wonder whether letting a property go into foreclosure would be easier and smarter than going through a short sale. With a foreclosure, and depending on state laws regarding foreclosure, a seller could stay in the property, essentially rent free, for four months to a year before being forced to vacate. But that fact alone does not mean a foreclosure is better.
Whereas a short sale involves offering the home for sale, generally listed through MLS. Potential home buyers will make appointments to view the home, some will make lowball offers, agents might hold open houses and, in general, a seller's life will be disrupted, all in the hopes that a buyer will buy the home.
Basics of a Short Sale
Short sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale. Not all lenders will negotiate a short sale, and that is why a real estate agent or a lawyer can be a tremendous help by contacting the lender's loss mitigation department to find out.
You can't just wake up one morning and decide you're going to sell your home at a loss by asking for a short sale. It used to be that lenders wouldn't even consider a short sale if your payments are current, but that has changed. However, realize that lenders will be more agreeable to negotiation if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts. Doing a short sale is not for the faint of heart.
How is the Seller's Credit Affected?
According to David Steep, division manager at Vitek Mortgage, Sacramento sellers, as well as sellers in other states, will take as big a hit on their credit report by going through foreclosure as giving the lender a deed-in-lieu of foreclosure, providing you are more than 30 days in arrears. Steep says the points lost on a FICO score are as follows:
Foreclosure or Deed-in-Lieu of Foreclosure: Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.
Short Sale: The effect of a short sale (providing the sellers are more than 59 days late) on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.
Catherine Coy, a mortgage broker in southern California, agrees. "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus," says Coy, speaking about borrowers who are a few months in arrears.
Waiting Period Before Buying Another Home
Foreclosure or Deed-in-Lieu of Foreclosure: Steep says a seller who wants to buy another home after foreclosure will end up waiting about 24 to 72 months before a lender will offer any kind of interest rate that makes sense.
Coy says, "The good news is a short sale will allow the consumer to obtain an institutional loan for a new home within two years".
For more information, see the Fannie Mae Selling Guide online. Click on the PDF link in the yellow box and see page 75.
Short Sale: Some agents say the good news for short sale sellers is the wait is much shorter before buying another home, and new Fannie Mae guidelines make that a true statement.
Can a seller buy again under two years? Partially true, says Coy, "It's an utter myth that a consumer 'can buy again in about 18 months at a good interest rate.' However, new Fannie Mae guidelines now require only 24 months' seasoning, and that's good news for agents who specialize in short sales."
Note that Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current and had no 60-day late pays or greater on record.
Short Sale / Foreclosure Deficiency Judgments
The bad news is a seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In general, a trustee's sale wipes out the right to a deficiency, except for certain junior lienholder conditions. In California, purchase money loans are not subject to deficiency judgments; however, some hard money loans, equity loans and refinances are, providing certain conditions apply. Some other states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.
The lender has sole discretion whether to pursue a deficiency judgment in those instances when the judgment is permitted. To determine whether a pending foreclosure or short sale is subject to a deficiency judgment, talk to a real estate lawyer.
If you're a seller trying to decide whether to let a home go through foreclosure versus attempting a short sale, salvaging your credit may not be an advantage to doing a short sale, if you've fallen behind in your payments. Coy says that according to "Score Factor Code #22, there's no credit score advantage for a delinquent borrower on a short sale over a foreclosure." The only advantage is being able to buy another home within two years over the three- to five-year period required for foreclosures. But seek legal and tax advice before making that decision.
And remember, NOT everything in the market is a foreclosure or short sale!
The following article is from about.com and written by Elizabeth Weintraub
(http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm)
Sellers may wonder whether letting a property go into foreclosure would be easier and smarter than going through a short sale. With a foreclosure, and depending on state laws regarding foreclosure, a seller could stay in the property, essentially rent free, for four months to a year before being forced to vacate. But that fact alone does not mean a foreclosure is better.
Whereas a short sale involves offering the home for sale, generally listed through MLS. Potential home buyers will make appointments to view the home, some will make lowball offers, agents might hold open houses and, in general, a seller's life will be disrupted, all in the hopes that a buyer will buy the home.
Basics of a Short Sale
Short sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale. Not all lenders will negotiate a short sale, and that is why a real estate agent or a lawyer can be a tremendous help by contacting the lender's loss mitigation department to find out.
You can't just wake up one morning and decide you're going to sell your home at a loss by asking for a short sale. It used to be that lenders wouldn't even consider a short sale if your payments are current, but that has changed. However, realize that lenders will be more agreeable to negotiation if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts. Doing a short sale is not for the faint of heart.
How is the Seller's Credit Affected?
According to David Steep, division manager at Vitek Mortgage, Sacramento sellers, as well as sellers in other states, will take as big a hit on their credit report by going through foreclosure as giving the lender a deed-in-lieu of foreclosure, providing you are more than 30 days in arrears. Steep says the points lost on a FICO score are as follows:
Foreclosure or Deed-in-Lieu of Foreclosure: Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.
Short Sale: The effect of a short sale (providing the sellers are more than 59 days late) on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.
Catherine Coy, a mortgage broker in southern California, agrees. "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus," says Coy, speaking about borrowers who are a few months in arrears.
Waiting Period Before Buying Another Home
Foreclosure or Deed-in-Lieu of Foreclosure: Steep says a seller who wants to buy another home after foreclosure will end up waiting about 24 to 72 months before a lender will offer any kind of interest rate that makes sense.
Coy says, "The good news is a short sale will allow the consumer to obtain an institutional loan for a new home within two years".
For more information, see the Fannie Mae Selling Guide online. Click on the PDF link in the yellow box and see page 75.
Short Sale: Some agents say the good news for short sale sellers is the wait is much shorter before buying another home, and new Fannie Mae guidelines make that a true statement.
Can a seller buy again under two years? Partially true, says Coy, "It's an utter myth that a consumer 'can buy again in about 18 months at a good interest rate.' However, new Fannie Mae guidelines now require only 24 months' seasoning, and that's good news for agents who specialize in short sales."
Note that Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current and had no 60-day late pays or greater on record.
Short Sale / Foreclosure Deficiency Judgments
The bad news is a seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In general, a trustee's sale wipes out the right to a deficiency, except for certain junior lienholder conditions. In California, purchase money loans are not subject to deficiency judgments; however, some hard money loans, equity loans and refinances are, providing certain conditions apply. Some other states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.
The lender has sole discretion whether to pursue a deficiency judgment in those instances when the judgment is permitted. To determine whether a pending foreclosure or short sale is subject to a deficiency judgment, talk to a real estate lawyer.
If you're a seller trying to decide whether to let a home go through foreclosure versus attempting a short sale, salvaging your credit may not be an advantage to doing a short sale, if you've fallen behind in your payments. Coy says that according to "Score Factor Code #22, there's no credit score advantage for a delinquent borrower on a short sale over a foreclosure." The only advantage is being able to buy another home within two years over the three- to five-year period required for foreclosures. But seek legal and tax advice before making that decision.
Friday, January 9, 2009
Happy 2009!!!
Happy New Year!! Sorry I have been so bad about blogging. I guess that's what happens when the holidays come around. I didn't even do much, but the lack of a consistant schedule really wasn't good for me!! BUT, it's a NEW Year, a NEW week and I'm ready to go!!!
I just completed my first round of a six week mailer and I'm feeling pretty positive about that. Hopefully many of you will be getting it in the next few days. Make sure you send it back!! (hello, I included a SASE!!!)
Every year on Jan 1 people start making resolutions. I personally haven't made one for years. I just try to continually improve. :)
Oprah has started her "Best Life" Series this week. I taped & watched Monday's show. It was a little long, but had a great message - BALANCE. You must have balance in your life. You must put yourself first and schedule "me" time. I think this is very important. I try to do this for myself each day by going to the gym. That's the time I can get in a good workout, feel good about myself and usually catch up with a friend or to. I hope everyone takes a little time each day for themselves!
Here's to a GREAT 2009!!!!
I just completed my first round of a six week mailer and I'm feeling pretty positive about that. Hopefully many of you will be getting it in the next few days. Make sure you send it back!! (hello, I included a SASE!!!)
Every year on Jan 1 people start making resolutions. I personally haven't made one for years. I just try to continually improve. :)
Oprah has started her "Best Life" Series this week. I taped & watched Monday's show. It was a little long, but had a great message - BALANCE. You must have balance in your life. You must put yourself first and schedule "me" time. I think this is very important. I try to do this for myself each day by going to the gym. That's the time I can get in a good workout, feel good about myself and usually catch up with a friend or to. I hope everyone takes a little time each day for themselves!
Here's to a GREAT 2009!!!!
Subscribe to:
Posts (Atom)