Nevada’s Homeowner’s Bill of Rights

Nevada’s Homeowner’s Bill of Rights

Hey, everyone. You may have heard about the Homeowner’s Bill of Rights that will be effective starting October 1st.  While the name sounds appealing to homeowners, it actually makes it easier for lenders to foreclose on properties.

Homeowners need to be aware of the recent changes in our market. Since February, the number of default notices has increased each month; in January there were less than 200, in August there were more than 2,000!

The Federal Reserve will soon stop providing money for short sales. What does this mean? Lenders will be more inclined to foreclose on your property than allow you to short sell it.

If you or anyone you know is having difficulty or just having questions about the Homeowner’s Bill of Rights, please call me at 888.558.0421. I can help and I know of some great attorneys who can help as well.

Thank you for watching!

Property Inventory Levels on the Rise

Property Inventory Levels on the Rise

Hey, everyone. Welcome back to my video blog.

For the past seven months, our Las Vegas market has been phenomenal. Both buyers and sellers were motivated; interest rates were low for buyers, and sellers were able to get a great price with the low inventory supply.

While we are still in a fantastic market, sellers should know that inventory is increasing. When that occurs, even when demand remains the same, home prices will come down.

In January of this year there were 3,000 single-family homes listed in the market. Today, there are 5,300 homes listed. It may not seem like a huge difference, but it’s very significant if you are a seller.

If you were thinking about selling your home in the next year, or were waiting for the time to get the most money out of your home, that time is now! Prices will soon fall and you don’t want to lose that money because you waited too long!

Give me a call at 888.558.0421 x1 so we can get started today or visit my website http://mitchellschwartz.yourkwagent.com to find out what your home is worth!

Are You Looking for a Home Near San Clemente?

Hi everyone! Today, I’m with my good friend, Heather Estus. She is with Keller Williams Realty in San Clemente, California. I know many of you have expressed an interest in living near the beach, now is your opportunity: prices are still soft and interest rates are fantastic!

Heather Estus

There are countless different reasons moving to San Clemente is the right move for you. Just to name a few

1. The weather is amazing! Today it’s about 70° and it’s like this year round. 
    
2. There is such a strong sense of community here! Your neighbors will be amazing.
   
   
3. Beach life! The majority of the homes in San Clemente are just a walk away from the beach. 
    
4. Shopping is wonderful here! We have great stores and boutiques!

So if you have any interest in the beach life, call Mitch and we can figure out what you need to know!

Sellers Hurry and Get In While the Window of Opportunity is Open!

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Have you been thinking of selling your home? Have you noticed that a LOT of industry people in real estate have been talking for a while now about how now is a great time to sell? Well the truth is, now IS a great time to sell but it may not last for long. In fact, there’s a good chance that by the beginning of next year we can start to see prices going back down or staying level.

So why not jump on the bandwagon now and get your home sold for top dollar at a time when there are plenty of buyers willing to pay premium prices for good homes in good locations?

We are expecting a good number of foreclosed properties to show up on the MLS in the coming months, particularly in October, November and December. Consider the basic laws of supply and demand. It’s quickly apparent that with the number of foreclosures expected during the next six months we can also expect to see prices rise or at least remain stable. The reason for this is that as supply continues to go up and demand remains the same, in order for the market to self-adjust, prices have to stay affordable so they continue to move.

Our current inventory level is at about 4,000 homes and we expect to have as many as 8,000 homes available for sale by the first of next year. Before you’re faced with too much competition, consider selling your home while supplies are limited.

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So if you have been thinking that in the next three to five years you might be selling your home, consider selling sooner and getting top dollar! We invite you to contact us today for a look at what you can expect to receive in today’s marketplace for your home.

Mortgage FAQs: Buying a House After a Short Sale or Foreclosure? Why So Many Documentation Requirements?

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Our mortgage industry continues to change, evolve and adapt based on years past. That’s why in today’s mortgage update we discuss some of the most important questions that arise in many homebuyers’ and sellers’ minds. Here are the answers as provided by our very own mortgage expert Linda Bertuzzi of Nova Home Loans.

Why do I have to provide so much documentation for my home loan?
Many buyers ask this question and over the years the answer has varied greatly. It started out where home loan files were very thick and they consisted of paper after paper of verifications. Tax returns, income statements, affidavits from previous lenders and landlords, credit reports and so much more. Then for a while things changed. The mortgage industry got very lax and all of a sudden anyone and everyone could walk into a mortgage company or bank and walk out with a home loan.

We all know what the result of that was and following the 2007/2008 housing crisis things changed slowly but very surely. Major banks across the nation had to settle with state and federal regulators and end resulted in very stringent mortgage processes.

What you are experiencing today is part of a collective effort to avoid another mortgage crisis in the future as well as make sure buyers truly can afford what they are borrowing. It’s not just a matter of a house payment; a home loan is a long-term investment that buyers must be able to afford.

How soon after a short sale or foreclosure may I buy another home?
At first after the housing market crashed there were many unknowns as to how long it would take homeowners that were underwater to buy again. But with an effort to streamline the process and help to strengthen the housing industry as a whole, both the Obama Administration and lending institutions came together to be more lenient.

Today, homeowners that were forced to short sale their home can now buy another home as soon as the next day from the sale of their home. This applies in certain cases, and only if the homeowner never defaulted on any payments and remained current throughout the short sale process. On average FHA and VA loans holders can expect to be able to purchase another home within two years of a short sale or foreclosure if credit score is rebuilt and some other requirements have been met.

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If you would like to explore your options, we invite you to contact us today! Linda can be reached at 702 596 9565 and is ready to assist in making your real estate goals become a reality!

Getting a Check at the Closing

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Traditionally, the benefit of owning a home was being able to eventually sell it for a profit. Because the market has hit upon tough times, this scenario hasn’t always been the case, but things are changing. Sellers are getting checks at the closing! After years of struggling or even being underwater, they now have equity. Right now, a lot of people think they can’t sell their home because they don’t have equity, but they just might.

So if you’re thinking about selling and you’re afraid you’re upside down or underwater, I can determine the equity so you can make an educated decision to sell now or stay in the property. It’s a quick process. To give you an accurate look at your home’s value, which will help determine the equity you have in it, I look at such criteria as location, the condition of your home and what other homes are selling for in your neighborhood. This number may pleasantly surprise you. 

If you decide to sell, we can do a personalized walk-through to let you know what you need to do—and not do—to increase your chances of getting top dollar for your biggest investment. This approach will ultimately save you time and money. We’ll also build a strategy so that anyone who is looking for a house in your neighborhood and price range will know about your home. Our job is to market it to its fullest to all the buyers out there by being aggressive.  
 
Give us a call so we can tell you where to be positioned and how to be successful in this market. Please contact us at (702) 303-0040 or email us at mitch@mbsrealestateservices.com. We’d be happy to assist you. 

Mortgage Process FAQs Part 2; What Every Buyer Needs to Know in Today’s Marketplace

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As anyone in the Las Vegas area will tell you, I’ve been doing this for longer than most people can remember. And time and again, the most frequently asked questions have to do with mortgages and financing. So today, I met with Linda Bertuzzi of Nova Home Loans at 702-596-9565, a long-time partner and friend of the Mitch Schwartz real estate team and we share with you a three-part series with the answers to your questions.

One of the hardest things to see as a real estate agent is when we’ve helped someone sift through countless homes, find the perfect dream home and then lose the home because they were not prepared. In today’s mortgage FAQs, we cover what you can do to make sure all your ducks are in a row so you can GET the home of your dreams!

While in process of getting my loan, may I make any other new purchases?
The answer is no. Getting a home loan entails a long process that takes into consideration every little aspect of your financial makeup. It highly depends on your debt-to-income ratio, your spending patters and of course your ability to pay the loan. Though you can make cash purchases or investments with funds you do not plan to use for your down payment or other closing expenses, it’s important to stay in touch with your lender so they know what to expect. Some of the things to avoid are maxing out credit cards, making large purchases and opening new lines of credit.

Do I have to worry about my credit being checked after the first time?
The answer is yes. Though your lender will pull your credit initially to evaluate your creditworthiness as far as your loan goes, lenders are required to keep checking throughout the loan process. Due to a loan quality initiative, banks are required to monitor your credit until the loan closes, making sure you are not pulling more debt with your existing credit lines. Keep in mind, if your credit score dips in the process, you could easily lose the house and wait until you have rebuilt your credit.

How long does it take to get a loan?
The typical time it takes for a loan to be processed is anywhere from 45 to 60 days. However, these are loan applications that have been completed to the maximum capability of the buyer. All requested documents are submitted prior to the loan application process begins; tax returns, bank statements, income statements and verifications – all need to be submitted in entirety.

What’s the most important thing to know about getting a home loan?
The single most important thing buyers should know, especially in a world where information is easily available online, is to educate yourself on the process. Find out what to expect and know in advance the items you will need to present to your loan officer. Any shortfalls in this regard will likely cause hiccups in your buying a home.

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Are you in the market to buy a new home? Ideally the loan process should be started about 30 days prior to writing any offers. Contact us today for more information on what you need, we’ll put you in touch with our favorite lenders and get the ball rolling!

Keller Williams RED Day 2013

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Every year on the second Thursday of May, real estate agents across the country band together, put aside their work and give back to their communities. The occasion is Keller Williams RED Day and it has become a staple of the organization. The event’s mission is simple: Renew, Energize, Donate. Offices across the country use RED Day as an opportunity to get their staff together to host a blood drive, work at a food bank or find some other way to lend a helping hand.

This year, Keller Williams Realty - The Market Place of Henderson teamed up with Rebuilding America. We selected a home to paint the exterior, clean-up the yard and move debris and were able to complete all of these projects on May 9th. RED Day is consistently a great way to get our team out of the office to build relationships with one another and the community.
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If you have any questions about how you can be involved in next year's RED Day or if you have any real estate needs, please feel free to call me at (888) 558-0421 ext. 1 or email me at Mitch@MBSRealEstateServices.com.

The Answers To The Six the Most Frequently Asked Mortgage Questions

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As anyone in the Las Vegas area will tell you, I’ve been doing this for longer than most people can remember. And time and again, the most frequently asked questions have to do with mortgages and financing. So today, I met with Linda Bertuzzi of Nova Home Loans at 702-596-9565, a long-time partner and friend of the Mitch Schwartz real estate team and we share with you a three-part series with the answers to your questions.

What are the costs involved in making a home purchase?

There are lender fees and there are title, escrow, taxes and insurance fees. On average this adds up to about two to three percent of the sales price in terms of cash closing costs needed to close. Ideally, meeting with your lender in advance will give you a clear idea of your closing costs based on your price range, timing and other factors that are unique to you.

When Should I Set a Budget?

These days (especially with there being more buyers than there are homes for sale) it is strongly suggested to obtain a preapproval from your lender before venturing out to search for homes. Not only will you know what you qualify for in terms of your debt-to-income ratio and monthly payment but also you will be able to ascertain your expenses up front.

How Are Interest Rates These Days?

The most popular loan products these days are 15 and 30 year fixed rate loans but we are seeing a lot of lender competition. The Fed has kept the base rate low for at least a few more months, if not more, but no one can really tell when they will start to climb up again. For now, we are still enjoying all-time low interest rates. Depending on your credit and down payment investment, you may be able to secure a lower-than-average interest rate. This is just another reason to meet with a lender before starting your home search.

What Is the Minimum Credit Score I Need to Borrow Money for a House?

Though it’s fluctuated in the past, these days most lenders look for at least a score of 640. Once again, if you are making a significant down payment on the house, that number might be able to go a little lower. But lenders will no longer accept anything lower than 620 as used to be the case prior to the housing industry crash in 2007. Higher scores also translate to better interest rates so if there are two people looking to buy a home and one has a lower score – sometimes it might make sense to remove the lower score from the loan application.

What If My Credit Is Not Perfect?

Many times people will make the decision to buy a house but they have no idea of the condition their credit is in. It is critical to know in advance of starting your home search if there are any concerns that need to be rectified. If you do need help with rebuilding your credit, lenders will share with you specific steps on how to rectify concerns that could later impact your ability to borrow. Sometimes, Linda’s team has helped clients build their score higher to get a better interest rate.

How Should I Choose a Good Lender?

While all lenders will be working from the same investor pools, and therefore will likely offer similar interest rates, the challenge comes with unscrupulous loan officers that charge extra fees then call them discount points. You should choose a lender based on customer service levels, your connection with them, long-standing relationships you may have with them and by reference of your Realtor®.

Why Listening to Your Agent Saves Time and Money

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If you want to sell your home faster than your competition, it’s a good idea to take your real estate agent’s advice. Almost half of the sellers who listed their home at what the agent recommended sold their house for more money and twice as fast as the competition. It may be tempting to price your home high, but you may just be making your neighbor’s home that’s more reasonably priced look like a great deal.

Homeowners Doing a Short Sale Should NEVER Leave The Home Until the Buyer’s Loan is Approved

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There are two websites where you can get more information and find out if this program is right for you:

www.LasVegasShortSaleHelper.com

www.ShortorStayLasVegas.com

A short sale can be one of the most daunting experiences in a homeowners’ life. First the difficult decision to put it up for short sale after realizing the property is underwater. Next, deciding to go ahead with it and then implementing the huge change. Working with agents, trying to keep a straight face while going through showings on the home – all are difficult things to deal with considering the emotional situation at hand.

A common question that is asked of us all the time is about the amount of time the homeowner will be able to spend in the home before having to leave. The answer is largely “it depends” but for the most part it is usually four months or more.

Since the short sale process is a very long one, homeowners should never leave the house until a buyer has completely seen through their financing. The reason for this is that you don’t want the lender to think you have abandoned the property and then proceed with foreclosure action.

There are some good reasons to continue staying in the house, including the ability to save up funds that would otherwise have been used toward the mortgage payment. Another reason not to leave too quickly is that you can prepare for the next transition in life. Of course the last thing you want is the bank to begin foreclosure proceedings if they think you are no longer there and have walked away from the mortgage.

Keep in mind, once an accepted offer comes in on the property it must be approved by the lender before anyone can proceed to the next step. That approval process can be anywhere from 60 to 180 days after submitted to the bank. Even after the approval comes through from the lender, another 30-45 days will go into the financing end of it for the buyer. Depending on the type of financing the buyer chooses it can take more or less time.

In general, most short sales typically take about four to six months before everything is said and done. The single most important thing to keep in mind is that moving anytime before the very end when the buyer has funding in escrow can be seriously detrimental to you.
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If you would like more information on short sales or want to discuss your situation in detail to learn of your options, we invite you to contact us today!

If I Short Sale My Property Will I Owe Taxes On It?

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Many of you are just beginning to consider doing a short sale on your home. If your mortgage is underwater and you feel there are no other options short of allowing the bank to foreclose on the property, a short sale may be the perfect solution. But along with this solution comes some important questions – particularly having to do with taxes.

Will you have to pay taxes on the money you are forgiven from repaying on a short sale?
For the most part, the answer is no. 

If you sell your home, the short sale is approved by the bank(s) and the property makes it to escrow and closing by the end of this year (December 31, 2012) then there is a good chance you will not owe any taxes on that forgiven amount.

Also for the money that is being forgiven, or discharged, if it was entirely used only to purchase the property rather than used as funds you accessed through the equity on your home so that you could spend it elsewhere, then there is a good chance that you will not pay taxes on it.

Rental properties for the most part are also not taxed through the end of this year if involved in short sales.

The important thing to remember is this: every situation is unique and each property has aspects to it that will likely not be like any other short sale situation. For this reason, the best way to truly confirm whether you will owe any taxes on your short sale is to meet and consult with a Certified Public Accountant. If you would like some references for CPAs in our local area, we would be happy to provide them.
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If you would like guidance, advice or even if you would like simply to review your options – contact us today. We look forward to helping you!

There are two websites where you can get more information and find out if this program is right for you:

www.LasVegasShortSaleHelper.com
www.StayorShortLasVegas.com

Worried About What Your Neighbors Will Think If You Short Sale Your Home?

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Two words: don’t be. Here’s the thing. On the one hand you may be concerned with how it may look if and when the neighbors find out you are short selling your home – but on the other hand, you are dealing with one of the most difficult situations you will likely have to face.

There are two websites where you can get more information and find out if this program is right for you:

www.LasVegasShortSaleHelper.com
www.StayorShortLasVegas.com

So how do you get over the fact that everyone you have lived with in the neighborhood will soon enough know your mortgage is under water? You focus on what is really important; you. 

Having said that, it is worthwhile to know that while neighbors might prefer a conventional sale over a short sale – they would MUCH rather have a short sale in the area as opposed to a foreclosure. This is because of the typical types of activity you might expect to see happen in a foreclosed home. A vacant home might attract vandals, sit there for who knows how long and ultimately drag neighborhood home values down.

Your short sale, which you can explain to anyone that asks, is a viable alternative that not only keeps the values at market level but also maintains an owner-occupied status of the home. The key here is to use a real estate agent that knows what they are doing. You could fall into the trap of dealing with a real estate that is less experienced in short sales. We see homeowners falling victim to those inexperienced agents that advise underpricing the home to “attract multiple offers”. THAT is what might set your neighbors off a bit.

So the next time you have any qualms about how others may perceive your much-needed short sale, direct all your energies toward the fresh new start you can get without damaging your credit or your reputation nearly as much as a foreclosure would.

As always, please feel free to call us, email or walk right into our office if you would like a one-on-one discussion about your real estate needs. We look forward to hearing from you!

The Home Affordable Foreclosure Avoidance Program Seeks to Assist Struggling Homeowners

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When President Obama signed the Home Affordable Act into law, many aspects were introduced but all had one common goal; to help homeowners get through the difficult times that have placed them in impossible situations. After the housing market crashed in 2007, countless Americans were faced with the possibility of losing their home to foreclosure – largely due to a sudden dip in values resulting in them owing more on the home than the home was worth.

The Home Affordable Foreclosure Avoidance Program is a benefit that allows qualified homeowners to obtain a waiver of deficiency so that the lender does not come after them once all is said and done. One very attractive aspect of the program to homeowners considering alternatives to foreclosure is that the bank will provide up to $3,000 in moving costs at the time escrow closes.

Though this is a popular program, not everyone qualifies. For starters, the home in question must be the borrowers’ primary residence. There are other considerations too.

To be sure that you are availing the maximum amount of the benefit available to you, be sure to contact a real estate agent that is well versed in the workings of short sales, foreclosure avoidance and the HAFA program in general. There are two websites where you can get more information and find out if this program is right for you:

www.LasVegasShortSaleHelper.com
www.StayorShortLasVegas.com

The first website is a great resource for information. The second website will help you figure out when your property will become an asset again. Both will provide some direction on where you might want to head next.

For a customized consultation about your situation with an expert that has dealt with many, many short sales, contact us today. Keep in mind, not everyone qualifies, there is a specific process that must be followed and not every agent has the expertise to deal with this type of complex transaction. It is critical that you find an agent that is committed to your best interests.

Qualifying for HAFA; Exploring Alternatives to Foreclosure

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Go to www.LasVegasShortSaleHelper.com for more information >>

If you feel you are stuck with a home that has a mortgage larger than its value, it may be time to consider a short sale. For more reasons than ever now, there are programs issued by the government designed to help homeowners through this very difficult time in their lives.

With already existing incentives, such as the $3000 relocation funding that is disbursed in many short sale transactions, there are now some more guidelines that have widened the scope of qualifying homeowners.

First, let’s look at the six must-know items about the HAFA (Home Affordable Foreclosure Alternatives Program) that have been around for some time now:

• The home must have been purchase prior to 2009
• It must be delinquent, in default or seriously in jeopardy of being in default
• An unpaid principal balance of less than $729,750 is the limit
• The lender servicing the loan must be a HAMP (Home Affordable Modification Program)
participating lender
• The home must be the applicants’ primary residence*
• The monthly mortgage amount is not to exceed 31% of the homeowners’ gross income*

Now, having said all this, notice the asterisks on the last two points above. The notes below will share the most recent changes to the program that have enhanced qualification eligibility guidelines.

*Effective June 1, 2012 President Obama Administration made some important changes to the HAMP Program. Among other relaxed guidelines, homeowners with secondary properties that are currently rented or where the homeowner intends to rent them may qualify.

Another change reported to the program is related to homeowners’ debt-to-income ratios. As of the newest guidelines, borrowers that exceed 31% debt-to-income ratio may still be eligible for the program.


We know that not all benefits are available but a lot of it has nothing to do with whether a seller qualifies for it or not. The real reason many homeowners never see light of day on some of these cash incentives is because they are dealing with an agent that has little to no experience with short sales and the HAFA program. A good real estate agent that understands the HAFA process is critical. If you end up working with a real estate agent that is less experienced with these types of sales then you stand to risk losing thousands of dollars. And for no good reason.

It’s all about knowing the timing of the process, filling out all documents precisely and completely, making sure everything is perfect. As far as the $3,000 relocation incentive that is a part of the HAFA program or other potential lender-based incentives, only your lender will actually be able to tell you whether you qualify for an incentive. What we can do is position you to be a strong candidate for what might very well be rightfully yours. For a customized consultation to discuss your specific home and situation, contact us today.

Mortgage Debt Forgiveness Act

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For more help go to www.shortorstaylasvegas.com 

By now, chances are you have probably heard the term “short sale” – especially during the past five years with our housing market struggling to recover from the housing market crisis of 2007. Luckily, we have enjoyed a strong economy and have not seen too much of the same dire circumstances many homeowners across America have experienced. Still, if you owe more on the house than what it is worth and are looking to sell it, a short sale is likely your best option.

Everyone has a pretty good idea of how a short sale might impact one’s credit outlook. Though it may not have as heavy an impact on credit as a foreclosure might, a couple years after a short sale before the homeowner can consider buying a home again. There is, however, a tax implication of doing a short sale that many people are not aware of. The amount of debt that a bank agrees to forgive in order to allow a short sale to take place is forgiven debt and the IRS considers that amount as income. As such, all income is taxable, leaving the homeowner that opts for a short sale with a significant tax bill at the end of the year.

Mortgage Forgiveness Debt Relief Act

In light of our nation’s struggles with property ownership after housing values plummeted, the Mortgage Forgiveness Debt Relief Act was signed into action, allowing homeowners an exemption on discharged or forgiven debt from the sale of a primary residence.

This benefit has been around for some time now and has been extended by the government in the past, however its deadline is fast approaching with a program end date of December 31, 2012. This means that all homeowners considering short sales should complete their transaction before the end of the year.

Short Sale Process Can Take Months

At first, when countless Americans struggling with the economy and declining values, short sales were slowly began picking up pace. Then, when the 2010 robo-signing scandal broke loose, banks again lacked confidence in doling out relief in this form to borrowers, ending up in short sale processes that could take up to a year or even more. 

Today, however, many banks have streamlined the process and even prefer the short sale route versus a foreclosure. Compared to the lengthy process times and extensive legal fees involved in a foreclosure, banks are even willing to pay out cash in some short sale cases.

Window Of Opportunity Will Not Last Long

Since the halfway mark of the year has passed, we strongly advise any homeowner looking to sell their home despite owing more than its current value, to contact us today. Timing is key and with just a few months before the end of the year to take advantage of this benefit, now is the good time to start the process.

Ten Facts the IRS Wants You to Know About the Mortgage Debt Relief Act

1.  Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence. 

  

2.  The limit is $1 million for a married person filing a separate return.

3.  You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure. 

  

4.  To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence. 

  

5.  Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion. 

  

6.  Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion. 

  

7.   If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven. 

  

8.  Debt forgiven on second homes, rental property, business property, credit cards or car loans do not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions. 

  

9.  If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed. 

  

10.  Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

My Credit is Shot, Why Do I Need a Short Sale?

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For more help go to www.shortorstaylasvegas.com 

As a homeowner, if your credit is already shot and you are having financial hardship to the point you cannot pay your mortgage, you should consider a short sale in opposition to foreclosure.  There are many reasons why you should consider a short sale, even if you are just late on your mortgage.  If you are late on your mortgage and do not need to foreclose your property, you will still slip farther into financial difficulties due to the late fees.

When you are late on your mortgage it affects all of your payments.  Your mortgage payment history can affect your credit score by up to 35 percent of the total score.  35 percent of your total score is a huge impact on your credit score, so you must minimize it as much as possible.  If you find yourself in a situation where you have gotten behind on your mortgage payments and your credit score is getting killed, a short sale is a viable option.

A short sale will still impact your credit; however, the impact will not be as severe as a foreclosure.  A short sale will impact your credit score for around 18-36 months, while a foreclosure will impact your credit score for between 5 and 8 years.  Also, if you have credit cards through any company, the contract that you signed with the credit card agency will have a clause stating that if your credit changes significantly, the credit card company can change the interest rates.  So when your credit score drops drastically due to a foreclosure, the interest rates on your credit cards will sky rocket, leaving your in further financial trouble.

Your credit card interest rates are not the only thing affected by a declining credit score.  Your insurance rates are also affected by your credit score.  Insurance companies often times base their rates on a person’s credit.  If you foreclose on your house, in addition to seeing your credit card interest rates increase, your insurance rates will increase as well.

On credit applications, there is a box that asks if you have ever had a foreclosure.  Any time after you have a foreclosure, you will always need to mark this box.  There is no expiration date; it will be with you from that point on.  There is no such box for a short sale.

A short sale is often a much better option than a foreclosure.  A short sale can stem the tide, stop the bleeding, and protect yourself and your family from financial devastation.  

Do You Have to File Bankruptcy to Avoid Foreclosure?

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For more help go to www.shortorstaylasvegas.com

Foreclosure and bankruptcy are two of the scariest words for any home owner. However, if you are having serious financial difficulties and fear that you might have to declare bankruptcy to save your home, you may have other options. So instead of panicking and declaring bankruptcy in haste, consider your options and you may be able to retain your home without taking such a drastic step.

If a notice of default has yet to be filed or a notice of sale has yet to be recorded, bankruptcy may not be your best option. If you are having problems paying off your home, but are not overwhelmed by any other bills, then, again, there may be better options than bankruptcy.

The best thing any home owner who finds them self facing a possible foreclosure or bankruptcy, is to talk with experts about what their top prospects are. Meeting with an attorney to answer any questions you may have is a great place to start. Also, real estate agents are very knowledgeable in this field, so consulting with a professional in the real estate industry can help you find the option that is most suitable to your position. Because every instance of possible foreclosure is different, there are many different options the person facing foreclosure can choose from. The best thing to do is to arm yourself with insight into the problem and find the solution that is most pertinent to you.

5 Tips for Selling in Today's Market

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Selling a property in today’s market can be a daunting and stressful experience for any homeowner.

However, there are five easy, proven tips to lighten the load of selling your home.

Make Your House “Show Ready”

Living in a house and selling a house are two different things.   When you are going through the process of selling your home, make sure that the property is clean and ready for showings at all times.  Having sparkling counters in the kitchen and a fresh smelling bathroom can go a long way in making a great first impression to the prospective buyer.  By having a “show ready” house, this tells the buyer that you are a serious and dedicated seller.

Give the Buyer Some Privacy

As a seller, you want to avoid being present during the showings.  If you give the potential buyer some privacy, he or she will be more inclined to speak candidly about the pros and cons of your property.  Also, by vacating the property during the showing, the buyer is more easily inclined to imagine the house as their own.  They feel freer about rearranging furniture, envisioning which rooms their kids will be able to play in, and any other modifications they would like to make.  If the house is open to the buyer, they are able to start to feel like it could be theirs instead of yours.

Make Your House Available 

Never underestimate the power of a lockbox!  Many of the agents showing houses in your market are going to prefer to show a property that they know that they will have access to.  You want to have the most showings possible in order to sell your house quickly and the best way to have the most showings is to have an extremely accessible property.

Price Your Property Effectively 

The housing market is a very competitive entity.  It may seem very tempting to list the price of your house at a rate which will make you the most net dollars, but this is a mistake that trips up many sellers.  You want to make sure that your house is priced right to bring in the highest amount of net dollars AND at a price that will sell the property in the shortest time possible. When agents and buyers see that a home has been on the market for an extended period of time, they assume that there is something wrong with it. The National Association of Realtors has backed this up statistically.  The NAR states that sellers that price their property 10% above market value end up selling their property at as much as 6% below the market.  The numbers don’t lie!

Hire the Right Agent

Take time in finding the right agent.  The right agent should be someone you trust and the best way to find the right agent is to interview the candidates thoroughly.  Ask each potential agent about their experience in real estate and in the local market.  The right real estate agent can be worth their weight in gold and make the process of selling your home enjoyable.

Exploring the Main Differences That Makes a Short Sale a Better Choice Than a Foreclosure?

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Just a couple years ago, most people usually thought they had to give up their home in a foreclosure when they faced a financial stonewall.  However, since then the phenomenon of short sales has been on the rise, leaving homeowners a bigger, better and brighter option for the present and future.  In this article, we explore the comparative differences between the two so you can gain an edge when deciding which is better for you.

Purchasing Power

After walking away from your mortgage through a foreclosure, you can expect to feel the negative impact of it for five years, in terms of being able to purchase another home.  Even then, like a bankruptcy, a foreclosure is something you will perpetually have to report no matter how long it has been since the home went into foreclosure.  

Though these days you see a lot of talk about the financial and credit impact foreclosures have on homeowners, the unseen part of it is something to be dealt with.  Going through this process can leave a lasting emotional hole in people who otherwise were law-abiding citizens, going about their normal lives when all of a sudden they are faced with severe financial hardship and must resort to extreme measures.  That, or if the value of their home has dropped well below the amount they paid for it and they see very little hope for the future.

Short sales are much simpler.  They will affect your purchasing power for a mere two years, often just the amount of time it takes to get back on one’s financial feet.  Not only that, there is no requirement to report a short sale transaction.

Credit Outlook

There are two main areas that are of concern when it comes to your credit – your credit score and your credit history.  In case of a foreclosure, credit scores drop a whopping 200 to 300 points.  This can have a significantly negative impact on your ability to purchase big-ticket items or secure loans in the future.   Not to mention it takes years to rebuild a credit score that has dropped that low.   In terms of credit history, a foreclosure remains visible on your credit report for anywhere from ten years or more, rendering each future potential lending transaction either useless or very hard-pressed at getting approved.  The overall impact you will see on your credit will be for about three years.

Short sales are far easier on your credit outlook, in that the point drop is only about 50 on average and the transaction itself will impact your credit profile for as relatively little as 12 to 15 months.  The one thing to keep in mind is that if you have defaulted on any payments or if you already have a weak credit profile, the post-short sale point drop on your credit report can be more than just 50.  Also, there is no formal reporting or declaration of a short sale on your credit report like a foreclosure although the transaction will show up as either settled or not paid in full.

Amount Still Owed

Usually there is a gap in the amount owed after owners walk away from a property and the bank assumes responsibility.  In case of a foreclosure, given the amount of processing time and resultant vulnerability and exposure of the property, the value can and often does drop greatly after vandalism and from sitting there unused.  The Deficiency Amount (also called Judgment Amount) is the difference that remains after the bank calculates what was owed on the property at the time of foreclosure and when they sold the home. Because of this vandalism and vulnerability, the amount of value drop is far more than with a short sale, when the homeowners are still residing in the property during processing.  The bank has the legal right to pursue homeowners for the amount difference.  

Short sales differ in that not only is the deficiency amount much less but also, your Realtor can negotiate a waiver of that amount so you don’t have to pay for it.