In this expensive world, having a dwelling is rare! Generally, people opt for rented one. However, for those you have a home of their own and want to go for some or More »
When looking for a new home there are several items you should consider carefully before making your selection. These things range from the size of the home, to the neighborhood it’s located More »
Faster Sale More Profit Stage It.
Staging is the process of getting a house ready to sell.
It is an important step; it is almost as important as pricing. Many For Sale by Owners make a mistake; they just put a sign in the yard and hope for a buyer. When you sell by owner, it takes careful preparation and planning.
In this article I’ll show you how to stage the house for the market so you sell faster and make more money.
The overall condition and appearance of a house is important in determining how fast it will sell and how much the buyer will pay.
Curb appeal is make or break.
Many buyers won’t view a house that doesn’t have curb appeal. Others are unable to look beyond your belongings once they’re in the house.
Buyers start making buying decisions at the curb. If a house doesn’t have curb appeal, you’ve lost a buyer.
You Never Get A Second Chance To Make A First Impression.
Buyers have built in discount clocks that start ticking at the curb.
They look for ways to reject your house and ways to discount your price. The buyer’s discount clock is always ticking.
Tic, Tic, Tic…
o Is the driveway clear and clean?
o Is the side walk free from clutter?
o Is the lawn mowed and edged?
o Is the house inviting?
o Is the sidewalk clean and clear?
Tic, Tic, Tic…
o Is the mailbox painted?
o Are box numbers easy to read?
o Are house numbers easy to read?
o Would colorful floors at the front door add appeal?
o Is the front door clean, new or newly painted?
o Is the entry porch clean and clear of stuff?
Does it sound like a pain, tending to all the details?
You do want top dollar don’t you?
Once inside the house ask yourself:
o Is the entry inviting?
o Is it well lit? Consider using full spectrum lighting.
o Is it clean and free of clutter?
o Would mirrors make the space seem larger?
You have to detach from the house.
The house is a property, not your “home.” Refer to it as a house, not your home. You are preparing the house, not your home, for the market. Make the distinction, it will help you stage the house. Is the buyer mentally moving in?
It’s imperative that a buyer sees himself/herself as living in the house. If they like the house, they’ll mentally move in.
You want the buyer to start thinking of it as their home.
You have to get rid of family portraits that line the stairs and halls. Too many personal memories can actually make the buyer feel guilty about taking you away from your home. Memory lanes are psychological turn offs for the buyer. You don’t want distractions.
You plan to move after you sell right?
o Start packing before you put the house on the market.
o Box up nicknacks, photos and stuff.
o Thin out.
o Box it.
o Store it.
o Have a garage sale.
o Less clutter creates a sense of space.
o Less stuff makes a house inviting.
Come on, you can do it.
Consider storing or selling some of your furniture. Create wide walking spaces. Recliners and sofas, are great for living, but terrible for showing. Clear walking areas. Make the rooms appear larger.
Visit model homes. Notice how sparsely they’re furnished. This creates a sense of spaciousness. Go home and start weeding out your excess furniture and clutter.
Lots of lights.
Be sure there are working bulbs in all light fixtures. Consider full spectrum lighting as it gives a nice natural light without starkness. Turn on lights for showings.
Goodbye toasters and kitchen appliances. Make the kitchen sparkle. Clean stove, broiler and oven. Clean the back splash. Buyers notice.
Bathrooms must sparkle:
o No wet towels.
o No toilet articles left out.
o Clean mirrors and shower doors.
o Beds made.
o Neat closets.
o Pick up clothes.
o Pack most of your clothes.
o Remove excess furniture.
o Create a sense of roominess.
If buyers are thinking move in, help them.
Open blinds and drapes and put a bouquet of cheery flowers on the table.
The garage counts too:
Clean the garage floor. Grease spots are a turn off.
Get rid of tools. Pack, hang or store them.
Would you buy this house? in its present condition, for the price you’re asking?
If your answer is not a resounding YES; then reconsider your price or improve conditions.
Consider hiring a professional decorator.
The Final List
o All Guns and jewelry put in a safe deposit box.
o Put away dog and children’s toys.
o Professionally clean all windows.
o Fresh paint pays for itself.
o Heat cinnamon in the oven – not necessary but nice.
o Dresser drawers orderly.
o Music – I vote no, buyers may hate your selection.
In summary you’ll want to:
o Create Openness try to make the house bright and cheery.
o Create spacious walking areas. Make everything shine.
o Approximate the look of a model home.
o Make a guest book.
o Make a flyer.
Good Luck Selling Your House.
Palm Springs is a world renowned resort town and has a lot to offer home-owners. Contrary to popular belief this city is really a moderately economical town in California where you can purchase your dream house. That’s not saying that we don’t enjoy visits from some of the wealthiest and famous people worldwide. I am just stating the case that Palm Springs is uniquely appealing to any taste. From a young college grad who wishes to move into his very first condominium to a well-off business person who desires to golf all winter and live behind the seclusion of a guarded gate. We have almost everything.
According to City-Data.com the average cost of residences on the market here in 2008 was $331,309. For the exact same time period the median house selling price in the all of California was $467,000. That is a savings of nearly 30% to reside in a top notch resort community.
If you are searching for Palm Springs houses for sale there are a few conditions you ought to know in order to comprehend price differences and the reason there can be such a difference in the prices based on the kinds of housing offered in the town of Palm Springs. In 2008 the average price of a detached house was $547,641 while condos or other attached units averaged merely $277,867. If you examine 2-unit structures such as duplexes, the price per home was $314,573. Tri- and Quad-plexes at the same time could have cost a buyer about $235,564 and homes with 5 plus units would have cost $193,221 on average.
According to the price levels previously mentioned, you may see that when looking at Palm Springs houses for sale, the kind of house you are shopping for can dramatically influence just how much you will have to shell out in Palm Springs. The more units in a development the less you will have to pay for your house. If you prefer a conventional home without attached walls you certainly will pay more than you would for any structure that is attached to others.
On top of that, when pondering Palm Springs houses for sale, due to the makeup of the area, you can find homes well into the millions. As of September 30th, 2010 the most expensive Palm Springs house for sale is “The Elrod House” and is currently being marketed at $13,890,000.00. This astonishingly high-priced home is also one of the most architecturally significant buildings on this planet. This home is visible on the south ridge from nearly anyplace in the city of Palm Springs. A fascinating fact about this home is that it was seen in the 1971 James Bond film “Diamonds are Forever.”
To swing the price scale the other way, you can get a manufactured home for as little as $24,990. That is an amazing price spread. The lowest priced residential home in the area costs less than 2/10ths of 1 percent of the cost of the priciest dwelling available for purchase in our town. This city truly has things for anyone.
Everyone wants their home to look clean and attractive. In certain climates however, this can require a constant stream of effort that would wear anybody out. Many areas of the Washington state area have climates, which are more prone to cause the weathering and corrosion of home exteriors. This article is designed to show you how simple Washington home improvement can be. You don’t have to work around the clock to maintain your home’s siding, paint job, windows or gutter systems—even if you live in Washington.
Siding in Washington
Washington home improvement, at least exterior Washington home improvement, starts with the right kind of siding. For most homes there are three types of siding that are recommendable.
Fiber Cement Siding
The first is Fiber Cement siding. Fiber Cement siding is beneficial if you are looking for a low initial cost. It doesn’t rot or burn and it resists insect damage. However, on the down-side, Fiber cement siding does not help to resist extreme temperatures, whether cold or hot. Fiber cement siding is also very heavy, which adds additional weight to the foundation of your home. It is brittle, (which leads to chipping from nails), and is more subject to air gaps and porous defects. Before you purchase this type of siding you should ask yourself how long you plan to keep your home. If you plan to keep your home for a long period of time it is recommendable that you purchase a siding that is more durable.
Another type of siding is Cedar siding. Cedar siding increases the value of your home, beautifies your home with a natural look, increases the resell value of your home and resists heat loss or gain. On the down-side, cedar siding has a high initial cost, has very thin boards, and is becoming more scarce, (which means that the price of cedar siding is continually on the rise.
The last type of siding that we recommend to your consideration is Swedish siding. Swedish siding increases the value of a home and offers a beautiful natural look. In addition, it increases the resell value of a home and resists heat loss or gain. It is thicker than most siding and the trees that are used to make this type of siding are generally 100 yrs old—which makes for more durable siding. Unlike cedar siding, Swedish siding comes in abundant supply and only the select heartwood is used. Finding siding in Washington that will increase the value of your home and which will require less maintenance doesn’t have to be a difficult process if you do your research from the beginning. Washington home improvement does not have to be difficult.
Painting for Washington Home Improvement
Another aspect of Washington home improvement is the painting service that you choose for the exterior of your home. When looking for a painting service it is recommendable that you contact a Washington paint contractor that will ‘prep’ your home carefully before applying a paint job. A good ‘prep job’ includes water prep (i.e. pressure washing of the gutters, eaves, siding and house trim for the removal of loose dirt and old paint). A dry prep process is also recommended as are scraping, sanding, caulking and filling. For more information in regards to these Washington home improvement processes, please contact a professional Washington paint contractor in your area.
Windows for Washington Home Improvement
For additional Washington home improvement we also recommend bay area vinyl windows. These windows are gorgeous, they let in lots of light and in many cases they are usually amenable to customization. Finding replacement windows in Washington that really contribute to the aesthetic qualities of your home doesn’t have to be a difficult process. Consult with a bay area window expert if you have questions.
Gutter Systems Improvement
No one wants gutter leaks, unsightly nail-heads, downspouts or clogged gutters. Make sure you get durable gutters for your home. A less-than-quality gutter can lead to other problems on the exterior of your home so if gutters are the problem at your house, they should be taken care of as quickly as possible, especially if you plan to live in your home for a long period of time.
Houses for sale in Fredericton have struck an all-time peak, and there appears to be no letting up in the distant future. With the ease of listing, selling and turning a profit from a house sale, it seems that many have chose to do just this, with success. Fredericton is the capital of New Brunswick and has experienced substantial economic maturation over the past 10 – 15 years. That, coupled with a substantial housing market, has fueled a big residential construction upsurge. The southside of the city is the more populated side of the river, and just recently there is less and less areas to develop. The larger commercialized and residential developments are now occurring on the “northside” of Fredericton New Brunswick.
If you resolve that flipping over a house might be for you, then your first task will be to talk to a real estate agent. Agents in Fredericton are really well versed in marketing homes for sale and have a very powerful rapport with the community and possible buyers or customers. Selling in private is always an alternative, but taking advantage of a real estate’s portfolio and selling skills is by and large the better decision. After a brief conversation with a real estate agent you will get a good sense of comparable households for sale in your price range, and you will be better able to place yourself in the housing market. Fredericton extends many differing regions and houses for sale within them, so adding your uniqueness to the mix is essential to gain leverage in a good housing market.
After deciding on what price you will ask for your house, you must resolve on what offer you would or could go for to close a deal. Potential buyers rarely, if ever, give full price for the house they are about to buy. They tend to make an “offer”. A general guideline is to be willing to swallow anywhere from 5-10% less of what you are expecting. Fredericton New Brunswick has some of the most choosy buyers, so be prepared for the offer, some counter offerings as well as some rejections. This is a part of the business of selling your home in Fredericton.
If you get an offer that is near to your asking price, then it is time to consider your next purchase. It’s more then likely a good idea to stay with the identical agent that sold your household in Fredericton New Brunswick to purchase your next house. You are now going from the seller to the purchaser, and have a lot of insight into how the system works. Use all the insight you gained from selling your previous household, when you go to purchase your new house.
Houses for sale [http://www.freddybeach.com/blog/real-estate/fredericton-new-brunswick-houses-for-sale] in Fredericton New Brunswick are plentiful in shape, size and price, so take your time and take advantage of the booming real estate market now.
Your home always needs improvement works which range from urgent repairs to adding rooms and modernization. To carry out these works you require large funds which in many instances become difficult to obtain through personal means. You can, however, take home improvement loan at lower interest rate and finish the improvement works. By utilizing home improvement loans you also add value to your home.
Home improvement loans are offered to borrowers under secured and unsecured options. Under the secured option, lenders provide home improvement loans on condition of getting a security called collateral. The collateral consists of the borrower’s any property like home, vehicle, valuable papers etc. After placing the collateral with the lender, position of the borrower in fact strengthens in terms of taking a higher amount loan and bargaining for lowered interest rate.
Lenders generally provide secured home improvement loan up to £250000 It is important to note that in instances where greater loan is required, lenders check equity in the collateral. As higher equity ensures greater security of the loan, the lender therefore has no problem in offering greater amount of loan. Borrowers should prefer taking the loan of their immediate requirement
In secured form, home improvement loans are provided at lower interest rate which is main attraction for the borrowers. The interest rate can be brought down further if borrower compares numerous loan packages showcased online by the lenders.
Borrows can repay secured home improvement loans in larger duration of up to 25 years. While deciding on repayment term, remember that amount paid under monthly installments get reduced for shorter repayment term while increases for longer period.
Unsecured home improvement loans are generally taken by tenants and non-homeowners who usually do not own a property worth placing as collateral. These borrowers take the loan on the basis of their financial position, steady income and credit score. The interest rate, however, may be higher as due to absence of collateral, the lender has to incur expenses towards insuring the loan. But these borrowers also avail the loan at comparatively lower interest rate comparing various loan packages.
People having bad credit are also eligible for home improvement loan. These borrowers should make improvements in their credit score by adding some positive developments like paying off easy debts, in their credit report. On FICCO scale, borrowers are given credit score from 300 to 850 and a score of 750 and above is considered as good and of without risk for a loan deal with borrowers.
Home Improvement Loans can add to your financial well being apart from taking care of your immediate requirements. You should pay monthly installments in time and see that the loan does not turn into a debt.
A house is just perfect with chipped walls and broken taps. Is it? If you don’t think so, then home improvement loans is what you should be looking for. Home improvement is the resort for you, if your home is your personal hideout. Home improvement loans can aid you realize this plan. Home improvement usually takes a back seat due to lack of finances. If finances are an impediment, get secured home improvement loans. Secured loans for home improvement are a way of increasing home equity which is one of the most important added benefits. This implies not only your home will be comfortable but also its market cost is increased.
The thought process while taking loans is almost always diverted towards lower interest rates. Lower interest rates are very often the prime criteria of settling on a loan. But you must know that lower interest rates are not offered to anyone and everyone. The most obvious reason for lower interest rate being offered to you will be the fact that you are the homeowner. Secured home improvement loans are protected on borrower’s property and are dependent on the equity of the property. The property or home acts as the security for the loan and will therefore mean you have to give lower interest rates.
APR is the one that gives you a general idea of what your secured home improvement loan will cost. Go to the local bank and building society to get a general idea of the loans rates. You can also get an idea of loan rates on Google. Type “home improvement loans comparison” and it will provide you with the best deals immediately. Your loan lender is the one who will give you a good idea about what will be the total cost of repayment. Look out for hidden costs while settling down on secured loans for home improvement.
The secured home improvement loan rate is usually fixed and would vary from lender to lender. So browsing through the net would perhaps lead you to the better loan rate than the ones you closed on. Interest rates are negotiable for they are quite dependent on individual circumstances. The actual deal on secured loans for home improvement depend upon credit history, salary, age, joint or single application, collateral, amount to be borrowed and length of payback period.
The loan amount on Secured home improvement loans [http://www.easyfinance4u.com/secured_home_improvement_loans.html] vary according to the property type. A single family house would guarantee maximum £25,000 to £75,000 as loan amount. Don’t take more than you require on a secured home improvement loan. Don’t over improve your home for it might be difficult to recover the cost of improvement if the price tag of your house shows more than other houses in the locality. The loan term on secured loans for home improvement are very easily anywhere between 2 to 25 years.
Secured loans for home improvement can be made available at the time you are buying the house. This will work very smoothly in case your mortgage and home improvement loan do not overflow your available equity mark. Any kind of big or small improvements can be financed. Secured home improvement loans can be used for repairs, home extensions like, new conservatory, heating system, new kitchen and site improvements.
A secured loan for home improvement that is less than £25,000 can be called off within a week with no obligation under the 1974 Consumer Credit Act. You can take payment protection to protect your payment against any change of circumstance. If you do not opt for payment protection and find you can’t pay your monthly payments then discuss your situation with your lender. However, a secured home improvement loan does put your property at risk in situation of non repayment.
Home décor are oft quoted with high rates. This is usually the reason for putting off home improvement. Living in a house that needs repairs is not always a pleasant situation. You can’t be put them off and financial aid required is difficult to unearth. So, home improvement becomes a very irresolute condition. Make home improvement a win-win situation. How? – By taking secured home improvement loans. Chipped walls are falling and broken taps are leaking. They are doing this for a purpose – they want to be repaired. Repair them with secured home improvement loans.
Few identifiers are necessary to identify your kind of loan. An unprepared borrower might find it very confusing to get out of the jargon of loans in UK. A loans borrower/user demands for timely, reliable, accessible, comprehensive, relevant and consistent loan service.
Everyone loves their pets. Animals in general, and dogs in particular, make the perfect companions for singles and families alike. Just about the only negative thing associated with dog ownership is the expense. Fortunately, there are multiple ways to save money while taking care of your canine companions. You don’t have to spend a fortune on outdoor shelter for your pooch. There are cheap dog houses on the market that are just as safe, sturdy and durable as their more expensive counterparts. Making smart choices financially can make the joy of pet ownership less taxing on your wallet.
It would be terrible to refrain from adding a loving puppy or wonderful adult dog to your family over concerns about the cost of a dog house. Less expensive, more affordable options make the decision to adopt a canine pal easier. There’s no need to worry about the costs of owning a dog if you make frugal selections when you shop. Your dog won’t know the difference between the expensive brands and a cheaper alternative, but your dog will know the difference between living at the dog pound or pet store and living with your loving family. Make the decision to adopt a dog and shop smart to keep the costs down. You won’t regret it, and neither will the new pet in your life.
It is very important to keep your dog safe and sheltered whenever it is outdoors. Even if your dog spends the majority of its time indoors, there should be a suitable dog house outside in case it’s needed. For example, if you let your dog outside to play, it may suddenly begin to rain or snow. What if you are occupied indoors cooking dinner or feeding the baby? You might not realize that it has begun to rain. In the meantime, your precious pooch could be stuck outside in the pouring rain. If your dog has an outdoor shelter, it can hunker down in a dry, safe space until the sun comes out or you are ready to open the door. It’s the best way to ensure your pet stays safe.
Buying one of the quality cheap dog houses on the market is the perfect solution whether you have an outdoor pet or an indoor pet that occasionally goes outside. This shelter will ensure that your dog remains safe, warm and dry no matter what the weather brings. Best of all, one of these affordable dog houses won’t empty out your wallet. There are plenty of other expenses associated with having four-legged friends. By saving money on this important purchase, you will have plenty left over for things like vet bills, grooming sessions, obedience lessons and dog licenses. Dog food, collars, leashes, treats, little yellow raincoats and plaid sweaters all cost money. It’s a great idea to cut costs wherever you can so you will have enough left for all the care, nourishment and accessories that your pooch will need to live a happy, healthy and fulfilling life.
Want to simplify your life? Want to lower your monthly expenses? Want to reduce your dependency on your job? Tiny houses may be the answer for you and your family.
Below is my list of the many benefits of owning a tiny home. Here we go…
Less initial cost
A tiny house is obviously smaller than a traditional home. There are less materials and the labor required to build it because of it’s size. Since tiny homes often have most of the features a traditional house has (kitchen, plumbing, roof, flooring) the price per square foot is usually more expensive. But since overall size of the house is so much smaller, the overall price is only a fraction of traditional homes.
Less energy consumption
Tiny homes require much less energy to heat and cool simply because they have much less interior air space. Since many tiny homes are on wheels, a tiny house owner could move their house under a large tree in the summer, and out into the sun during the winter. Two additional culprits for significant energy consumption are refrigerators and hot water heaters. Both are typically smaller in a tiny house and consume far less energy. Another use of energy is your own energy. It doesn’t take long to tidy up a very small dwelling. I have seen folks who have been very creative with reducing their tiny house’s energy consumption and making use of the fact that their home is very small. Solar panels, wood stoves, wind turbines, compost toilets, the list goes on and on.
Less water consumption and trash
If you have a small shower and small hot water heater, chances are your showers will be alot shorter. If you have a small trash can, chances are you will generate less trash. Using less water and producing less trash is both good for environment and your wallet.
Less cost for repairs
Repair costs for your tiny home are simply a matter of mathematics. The cost to replace the roof of a 2,000 square foot home will be alot less than the cost of a 300 square foot home. This is of course because of the reduction in materials and labor.
Less land to purchase and upkeep
A small dwelling will require less land reside on. Since many cities have restrictions on the size a home can be, you may be required to purchase land outside the city with no restrictions. Land outside the city is cheaper to purchase and the taxes are less. If you elect to buy a very small plot of land that your house will reside on, you’ll spend less time cutting grass. If you buy a regular sized lot, you’ll have more room your garden.
If you have a small pantry, you’ll have a small amount of food in your house. If you can look through your kitchen window and see fresh vegetables growing in it, you’ll spend less produce. By eating less food in your tiny house, you’ll keep your food bill and weight down.
Since the value of your tiny home and land is resides on is less valuable (assuming you choose to buy your land rather than lease) your tax bill will be less. The savings can go towards investments, retirement, college for your children, vacations, or donations to tinyhouselistings.com:-)
Insurance for your home can add up quickly, especially when it comes time to use it. Tiny houses cost much less to insure because they are less valuable. Many insurance companies consider tiny houses on wheels to be an RV. Since insurance companies aren’t non profits and are in business to make money, you will often have difficulty getting the money from them. By owning a tiny house you can minimize the amount you give to them in the first place.
Less interest paid
When I bought my first house, initially I was paying more towards interest than the principle. It’s no secret that over the course of a 30 year loan, you will pay more for interest than you will the house itself. Most tiny house owners elect to pay cash for their tiny house, or to pay it off quickly. The amount you save by avoiding interest will ultimately be a huge amount. More than enough to buy the in-laws a tiny house and have it located on the back (way back) of your property.
More disposable income
All of the above reasons I’ve listed for buying a tiny house have been focused on “less”. Less consumption, less money out of pocket. All of this leads to having more money in the bank at your disposal. If you write a list of your recurring expenses, you’ll quickly realize that costs associated with your home represent the majority of your expenses. By owning and living in a tiny house, you are slashing your living expenses at every level.
Ok, 11 reasons. I saved the best for last. When you own and live in a small house, you free up your two most precious resources, money and time, not to mention some of Earth’s most precious resources…water and energy. Does your current standard of living prevent you from working at the job you want? Does it prevent you from going on vacations and taking time off when you like? Do you have to sacrifice spending time doing exactly what you want simply to pay your bills? Are you worried about the Earth and environment and leaving it in good shape for those that follow us? By living in a tiny house, you free up money by cutting expenses in a big way. You use less natural resources. You free up time by spending less of it cleaning and maintaining your home. You trade square feet for freedom.
If you’ve been considering taking the leap into property investing, now’s the time. Use this secret technique to buy houses for back tax with little to no competition for less than $200.
1. Avoid attending the tax sale. Too many bidders means not enough good deals. You also have to buy houses for back tax sign unseen, if you buy at tax sale. This is far too risky for anyone – let alone a beginner.
2. Wait for the end of the redemption period. The end of the redemption period will be your golden time. Mortgage companies have already bailed out mortgaged property at this point, leaving free and clear property. The owners that are left, either can’t pay their taxes or don’t want to. It’s easy to buy houses for back tax from these folks.
3. Obtain the tax-delinquent owners’ contact info. There are a ton of sites on the internet that can help you accomplish this. You can then contact them however you like, but calling always works best.
4. Get the deed. Since they’re just letting the property go, ask if they’d sign the deed over to you. Offer them $200 to take the time to sign over the deed to you. And that’s it – they’ll say yes most of the time, and that’s it – you’ve just learned the secret technique to buy houses for back tax for $200.
5. Take your profits – pay the back taxes or quickly sell the property. Finally, pay off the back tax, or liquidate the property quickly. If you have the money, pay off the tax bill and try to sell for retail, or rent it out. You don’t have to pay the taxes – with $200 invested, you can afford to sell to another investor and still profit big-time!
Try the above method and you’ll be pleasantly surprised at the results. And with so many foreclosures occurring, this is an amazing time to buy houses for back taxes. They’re cheap, they’re everywhere, and there’s no reason you can’t be as successful as the rest of the handful of investors who use this secret technique.
The current foreclosure rate won’t last forever – take advantage of it now.
Are you thinking… should i short sale my house? Confused about the short sale vs foreclosure option to stop foreclosure?
I know you are not thinking clearly because you’re worried about stopping foreclosure, your family becoming homeless, having trouble sleeping at night due to worry, feeling stressed about making the wrong decision, embarrassed your neighbors may find out you’re facing foreclosure, worried about your credit report displaying you had a foreclosure & a really bad credit score.
How can you possibly think clearly with so many issues and worries you are facing at this moment? This is why I have taken out time, hours of preparation, research to help you get a quicker understanding of your options and avoid making a costly wrong decision.
Do You Really Understand… What Is A Short Sale?
It is one of your options, so when your property is sold, the money the lender gets from the sale is less than the balance you owe on the mortgage debt balance. So if you cannot afford to re-pay back the total liens, the holders of the liens will release it and accept the reduced amount that you currently owe on the house.
What Are The Tax Consequences Of A Short Sale?
The amount that’s being taxed is the forgiveness amount on the mortgage or the difference of the mortgage and the property’s final selling price. This is considered income by the IRS and a 1099 form from the lender will be provided after the short sale transaction.
There’s an exception which is called the Mortgage Forgiveness Debt Relief Act of 2007 which terminates this tax up to two million dollars which applies only to residential owner occupied real estate. For married couples who do their taxes separately, the limit is split between them. If someone does not qualify for this, the bank may agree to report the forgiven amount as a gift. In this case, the short sale cannot be taxed by the IRS.
Another alternative is to file for… bankruptcy or liquidation…!!!
How Does A Short Sale Work? – 7 Steps Short Sale Process
* You must contact the bank to discuss the policies and procedures.
* You must compose a letter to release documentation about the loan and the property. This information is distributed to the buyer and the escrow agency.
* The lender will examine the settlement statement which entails the selling price and what is left of the loan balance. Closing numbers such as commissions, fees, and expenses are included.
* You have to submit a hardship letter which will describe your financial problems. It is a good idea to refer to some short sale hardship letter examples to use as a guide before composing yours. It should be short (a few sentences) and not lengthy for easy reading. Make the reader feel the extreme anxiety as to why you can no longer afford the property. So it’s imperative to build a strong case. Most importantly do not blame the lender. Remember the goal is to request assistance and not to offend.
* These documents include banking statements, investment portfolios, employment paystubs and other financial records.
* The lender will consult with the broker to evaluate the structure of the house and how much it’s worth when comparing it to other properties.
* The lender will examine closely that the purchase agreement and commission amounts are agreeable to all the parties.
How Does A Short Sale Affect Your Credit?
If your credit score is important too you and wish to protect it at all cost then… this option is a safer bet for you since it is not as a serious as, when the bank forecloses on your property. The FICO score damage to your credit report is less.
Example: Your FICO can drop between 50 to 150 points Versus 210 to 420 points for a foreclosure
10 Advantages To Doing A Short Sale
* Top benefit is – Debt forgiveness which is when there is no monies owed after this transaction. For example, if your home is worth $200,000 and it’s sold for $100,000 the left over amount is cancelled by the banks. Also, what’s eliminated includes closing costs, taxes and other fees.
* You don’t have to pay rent or make mortgage payments during the short sale process
* You’re in the driver seat not the lender
* You’ll avoid the embarrassment and your credit report showing a foreclosure
* You can be up to date with your mortgage and still do a shortsale
* Your home will be sold like any other home in your neighborhood… it’s your secret
* Credit Score Damage… is less (FICO drops 50 points – 150 points Vs 210 to 420 for a foreclosure)
* Deficiency Judgement – can be avoided by making sure your lawyer or realtor has negotiated with your lender in writing to not come after you to collect the deficiency balance owed after you sell your property
* You can get Tax Forgiveness based on the Mortgage Forgiveness Debt Relief Act of 2007 (Note: Consult with a professional first accountant, IRS, to make sure yours will be forgiven.)
* You may qualify for some cash as a closing incentive. These cash incentives range from $2,000 to as high as $35,000 paid by some banks, HAFA, FHA (hud) to short sale your home. You can use this money you receive at closing for moving and relocation costs in addition to whatever you save up while you
didn’t make payments to the bank.
* You’ll end up with a lower living expense related to rental payments which will be less in most cases.
Disadvantages To Doing A Short Sale
* Cannot stay and save money as you will be expected to move out as soon the deal closes
* Potential tax consequences if you borrowed against your principal and used the funds for some thing else other then house related expenses, once again consult with a professional short sale lawyer, accountant to make sure you will not have to pay back taxes to IRS.
* If you have multiple lenders who may have a lien to your property is can make it extremely difficult to do a successful short sale. Make sure you check to see if you have more then one lender if so… slow down and consult with your attorney again to see if it is worth it to do the short sale
* A foreclosure can take six to twelve months, credit scores have a greater negative impact, and the waiting period of purchasing another home is five to seven years. In a short sale, the process can take one to six months, the penalties on the credit scores are less severe, and there’s a greater chance of purchasing a future home by re-applying for a new mortgage within two years.
2 Advantages To Letting The Bank Foreclose On Your House
You can stay longer in your property as opposed to a short sale. Save the money you would paying to your lender, you pocket it and save it to move out to your next new apartment with your family and start over with the least amount of hardship if you have some money at least to move on with your life after foreclosure.
3 Disadvantages To Letting The Bank Foreclose On Your House
* Top Disadvantage – associated with foreclosure is what it does to your credit score rating. A house foreclosure will appear on your credit report because it is a loan with the mortgage lender. As a result, for any credit in the foreseeable future, a financial institution will be able to see that you had a foreclosure which will remain on your credit record for at least 7 yrs.
* When the mortgage lender actually sells the house and is sold at an sum less than what is due to the lender, you are liable for this difference. If you are unable to pay the difference, then you may have to file for bankruptcy also.
* A foreclosure will be handled as a very serious blemish on your credit history. You will have a harder time getting a lender to lend you money to buy a house or even other personal items. Bottom line your credit history is “Killed” with one powerful shot.
* Job hunting will become more difficult. It is a known fact that potential new employers will look at your credit history background, in addition with some employers if they see a foreclosure on your record some employers will reject your application immediately regardless if you are the best man or woman for the job and position.
How Long Can You Stay In Your House After Foreclosure?
This differs state to state but in some instances it can be as long as four months to one year until the individual is forced to vacate indefinitely. This procedure in New York State falls under two categories which is judicial foreclosure and non-judicial foreclosure.
Judicial Foreclosure – Is when the lender filed a complaint against the borrower and obtain an order of sale from the court.
Non Judicial Foreclosure – Lender not required to file a complaint in court, is given authority to sell and foreclose quickly.
Which Of These 12 Foreclosure Alternatives Did You Skip Over That Can Hurt You?
* Refinancing is a challenge for the borrower having limited equity and poor credit.
* Reinstatement can make a loan current by paying the amounts due.
* Short term forbearance allows for the termination of up to three payments or a decreased amount until six months. When the forbearance time period is over, the seller must comply on a longer repayment plan to catch up on those payments missed.
* Long term forbearance is very similar to short term forbearance with a few exceptions. This is designed for severe neglect and permits a reduced in payment for four to twelve months
* Special Forbearance can schedule a repayment plan depending on the vendor’s financial portfolio. There may be a temporary decrease or postponement of the seller’s payments. The individual must have experienced a current unintentional cutback in income or living expenses have increased. Documentation must be submitted as proof.
* Deed in Lieu vs short sale – When a seller may be able to willingly return their residence to the lender. This may not salvage the home, but will assist their probability of obtaining another mortgage loan in the future. The owner can qualify under these guidelines: if they have not been paying and do not qualify for any other options, their attempt at selling the dwelling prior foreclosure failed, and they do not have another FHA (Federal Housing Administration) mortgage in default
* Cash Sale relies on the owner’s equity. This occurs when the seller gets cashed out on the residence and the whole thing is paid in full. The property needs to be given at a discounted amount so it can be a worthwhile investment.
* Repayment combines past due amounts with regular monthly payments
* Modification is when the owner and the mortgage company will have a written agreement which modifies some of the stipulations of the note
* Another strategy to stop foreclosure is to make an attempt to come up with a portion of the money to apply towards the shortage which is called the contribution figure or the good faith payment. The monetary amount is between thirty five to fifty percent of the total amount that’s needed to bring the loan up to date. This tip proves to the lender that you’re interested in having the loan in good standing.
13 Ways You Can Get Foreclosure Help
* Consult with a foreclosure defense attorney
* Real estate investors who buy houses for cash
* Special Program Options… Other Short Sale Alternatives & Insider Options Experts don’t want you to know about Pandel Enterprises 1-718-577-2782
* U.S. Department of Housing and Urban Development (HUD) Telephone: 1-800-569-4287
* Neighbor Works Spanish or English 1-888-995-HOPE
* National Community Reinvestment Coalition (NCRC) 202-628-8866
* National Council of LaRaza (NCLR) NCLR may be the biggest national Hispanic civil privileges and advocacy organization within the U.S. 202-785-1670
* Neighborhood Assistance Corporation of America (NACA) 1-888-302-NACA
* Fannie Mae’s HomeStay Program 1-877-722-6757
* Freddie Mac ” Don’t Borrow Trouble Program ”
* Nation’s Association of Consumer Advocates 1-202-452-1989
* Home Ownership Preservation Foundation
* Project Lifeline Initiative Contact Your Lender To See If They Offer It
There’s a wealth of information here and no one is expected to know everything overnight. These processes are complex, but with the appropriate real estate professionals working on your side, this anxiety provoking area should be clearer to comprehend and help answer your question on why should I short sale my house.