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Lots of people have questions about short sales. What is it? How does it work? Is it good for me as a buyer? Is it good for me as a seller? None of the answers are easy, but let’s try to sort out some facts.
What is a short sale? A short sale situation exists when a homeowner owes more on his property than it’s value. For example, a homeowner purchased a home in 2005 for $350,000 and wants to sell it now. If the current mortgage amount is $275,000 but the house is only worth $250,000, the seller is “underwater” or upside-down.” A short sale occurs when the lender agrees to accept less than is owed on a mortgage.
How does it work? When a homeowner realizes he is in a short-sale situation, he should take immediate action and contact the lender to request a short sale (or short pay) package. The lender will require a number of documents to substantiate that accepting a short pay-off on the mortgage is appropriate. A competent real estate agent with specialized training in short sale transactions can help guide you through the process.
Is it good for me as a buyer? That question is a little complicated. Whether or not a short sale is good for you as a buyer depends on many factors. Short sale transactions often take longer than other types of transactions, so if you need to move on a specific deadline, it may not be the best bet for you. If you have a flexible schedule in arranging your move, a short sale can be good. You will likely be able to purchase a property at a reasonable price and feel good for helping out a distressed homeowner.
Is it good for me as a seller? Generally, yes. The advantages to sellers are many. In the first place, you can feel good about doing your best to make a bad situation better. Lenders understand that things happen — jobs are lost, catastrophic illness, or any number of other legitimate issues. For the most part they are willing to work with homeowners who are suffering from a hardship.
The downside? The process will feel invasive and embarrassing. The lenders are going to exercise every legal method at their disposal to make sure that the homeowner is deserving of help. At the end of the process you should understand that your credit rating will be adversely affected, but not nearly to the extent that it would in the event of a foreclosure. And, finally, won’t you fell better knowing that you did your very best to live up to the obligations you incurred?
Get more information. The best thing you can do whether you are interested in buying or selling a home that is a short sale is get more information. It’s important to work with a real estate agent who understands the short sale process. One good choice when interviewing an agent is to ask if he or she has any special training in short sale transactions or holds any certifications. There are many certifications available, such as the SFR® (Short Sale & Foreclosure Resource) available through the Natianal Association of REALTORS®.
Summer is coming to Tehachapi and so are the ants. Everybody is familiar with the marching armies that seem to be everywhere. There are lots of ways to battle ants. Sure, you can spray poisons to kill them, but those can be harmful to people, pets, and the environment. How about some more eco-friendly ways to deal with them? Myles H. Ba der provides some natural solutions in his book 1001 All-Natural Secrets to Pest-Free Property.
Did you know that Cream of Wheat is a natural deterrent to ants? Apparently they can’t digest it and it is lethal to them. Powdered borax mixed with maple syrup has the same effect. That solution is not recommended if you have children or pets. If you simply want to deter, but not kill, then sprinkle the substances they don’t like to cross, such as ground black pepper, chalk, or cinnamon, near doors or other areas where they can get into the house.
What environmentally friendly methods have you used to deal with ants?
- Lenders use several methods to determine whether to grant mortgages, including the how much money you have saved; your employment history; and your payment history.
- Lenders may be more willing to finance a mortgage for a borrower who defaulted on their mortgage as a result of factors beyond their control.
- If you are thinking about a strategic default, you should know that future loan underwriters will scrutinize your entire credit history very closely. Some homeowners who strategically default believe they can raise their FICO scores by paying their others bills on time. If the new lender determines the borrower strategically defaulted on their previous mortgage, the repaired credit score will not overshadow the walkaway.
- Although not impossible for strategic defaulters to finance another home purchase, it likely will be more difficult. Lenders may ask for down payments of 30 percent or more to provide sufficient collateral to enable the bank to recoup most of its money in a foreclosure. These borrowers also may be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive.