I would also include a monthly maintenance budget as well. Landscape maintenance, light bulbs, batteries for those smoke detectors, air filters....all add up!
3 expenses besides the mortgage that you need to be able to afford
Friday, December 28, 2012
Saturday, December 8, 2012
Tuesday, December 4, 2012
Short Sale....Why? Why Not?
To short sale or to let your home go into foreclosure....that is the question.
I am not sure why anyone would just let their home go to foreclosure. This should be the last resort after all other avenues have been exhausted. I know that the whole idea of it is stressful and you just want to move on and start again. The problem is that its not really starting again, its more like waiting and just living for many years until you can actually start over again.
Foreclosure does not just affect you and your family. It affects your neighborhoods, the community you live in, county budgets, and all the area property values. It can bring theft and vandalism to a neighborhood that does not normally have this issue, it can bring hardship to your friends that live on your street trying to sell their own houses to better themselves. Financial strain is probably one of the worst stresses that one can face, but you can't give up!
If you have already tried to modify your mortgage and have been unsuccessful, or you have gone thru bankruptcy and you just want to get out of the burden of owning a property, maybe you modified and still are having difficulty with the loan commitment....then SHORT SALE!
The next best thing to a normal sale is a short sale. Does it affect your credit....yes but experts say only by 50 points or so vs foreclosure causing 200 points or more decline in your FICO. Does it affect your ability to get another loan...yes, but again the time frame to which you can qualify for a home significantly decreases with a short sale vs a foreclosure. Not to mention your qualifying interest rates on other purchases.
"But what if I just never want to buy a home again. I don't want to get in the same position." Do not be driven by fear. All home purchases are investments. Treat them as such. A home is an asset that can be leveraged. Just don't buy over your means. Put more money down, pay an extra mortgage here and there when you can. Rent it. It can ultimately be your retirement nest egg if you don't invest in the stock markets or if you want to supplement your benefits. Do not put all your eggs in one basket and your home can just be another basket.
The most important thing when you short sale your home is getting an experienced agent that will do the work for you and is qualified to speak with the banks, negotiate, and has knowledge of the process to help expedite. You don't go to court without the best Attorney you can get, or go to a family doctor to treat a high risk disease. You go to a specialist that you trust to handle it so you don't have to.
The best end result of a short sale? Your agent is able to find a buyer, work with the banks, negotiate the sale, and sell your property. You may even qualify to receive a check at closing just because you decided to short sale which you would have never received if you foreclosed. Consider it a little payment to you for your hardship. Not to mention, you can stay in your home during that time, hoarding your money that you would have otherwise paid to your mortgage. Selling your home does not cost you a penny since your Agent was able to get all the closing costs paid for by your bank! All you had to do is provide the required documents that were asked of you and sign the contract...DONE!
Not only are you happier in the end, with your check in hand, credit still acceptable, but your community is all the better as well. The HOA and/or property taxes have been paid, the home was not left vacant, and there is no foreclosure on the record for this neighborhood. The bank did not have to spend thousands and thousands of dollars to attorneys and employees to process a foreclosure. WIN, WIN, WIN.
This is truly the best case scenario. Should you or someone you know be in a situation where a short sale is a viable option, please contact me so we can discuss your options.
I am not sure why anyone would just let their home go to foreclosure. This should be the last resort after all other avenues have been exhausted. I know that the whole idea of it is stressful and you just want to move on and start again. The problem is that its not really starting again, its more like waiting and just living for many years until you can actually start over again.
Foreclosure does not just affect you and your family. It affects your neighborhoods, the community you live in, county budgets, and all the area property values. It can bring theft and vandalism to a neighborhood that does not normally have this issue, it can bring hardship to your friends that live on your street trying to sell their own houses to better themselves. Financial strain is probably one of the worst stresses that one can face, but you can't give up!
If you have already tried to modify your mortgage and have been unsuccessful, or you have gone thru bankruptcy and you just want to get out of the burden of owning a property, maybe you modified and still are having difficulty with the loan commitment....then SHORT SALE!
The next best thing to a normal sale is a short sale. Does it affect your credit....yes but experts say only by 50 points or so vs foreclosure causing 200 points or more decline in your FICO. Does it affect your ability to get another loan...yes, but again the time frame to which you can qualify for a home significantly decreases with a short sale vs a foreclosure. Not to mention your qualifying interest rates on other purchases.
"But what if I just never want to buy a home again. I don't want to get in the same position." Do not be driven by fear. All home purchases are investments. Treat them as such. A home is an asset that can be leveraged. Just don't buy over your means. Put more money down, pay an extra mortgage here and there when you can. Rent it. It can ultimately be your retirement nest egg if you don't invest in the stock markets or if you want to supplement your benefits. Do not put all your eggs in one basket and your home can just be another basket.
The most important thing when you short sale your home is getting an experienced agent that will do the work for you and is qualified to speak with the banks, negotiate, and has knowledge of the process to help expedite. You don't go to court without the best Attorney you can get, or go to a family doctor to treat a high risk disease. You go to a specialist that you trust to handle it so you don't have to.
The best end result of a short sale? Your agent is able to find a buyer, work with the banks, negotiate the sale, and sell your property. You may even qualify to receive a check at closing just because you decided to short sale which you would have never received if you foreclosed. Consider it a little payment to you for your hardship. Not to mention, you can stay in your home during that time, hoarding your money that you would have otherwise paid to your mortgage. Selling your home does not cost you a penny since your Agent was able to get all the closing costs paid for by your bank! All you had to do is provide the required documents that were asked of you and sign the contract...DONE!
Not only are you happier in the end, with your check in hand, credit still acceptable, but your community is all the better as well. The HOA and/or property taxes have been paid, the home was not left vacant, and there is no foreclosure on the record for this neighborhood. The bank did not have to spend thousands and thousands of dollars to attorneys and employees to process a foreclosure. WIN, WIN, WIN.
This is truly the best case scenario. Should you or someone you know be in a situation where a short sale is a viable option, please contact me so we can discuss your options.
Monday, December 3, 2012
10 Big-Growth Markets in Next 5 Years | Realtor Magazine
Guess How Many Cities in TX are on this list...
10 Big-Growth Markets in Next 5 Years | Realtor Magazine
10 Big-Growth Markets in Next 5 Years | Realtor Magazine
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