Short Sale for Sellers: Let's say you have to relocate, my your home value fallen nearly $100,000, and you have to get rid of your home - the question is foreclosure or short-sale?
A short sale, in which you negotiate with the bank to sell your home for less than you owe on your mortgage will have a dramatically negative effect on your credit. A consumer who has been through a short sale could see a drop in his/her credit score of up to 200 points, essentially the same decrease as if the homeowner gone into foreclosure, says John Ulzheimer, president of consumer education for Credit.com. and like a foreclosure, the negative mark will pull down the score for seven years.
That said, if you are underwater on your mortgage and you need to move, a short sale might be a better option than foreclosure. Going through a foreclosure will make it very difficult for you to get a loan for at least 3-5 years; with short sale, you might be able to qualify within 2.
Another thing to find out and consider, the forgiven debt is completely forgiven; or you would be expected to pay taxes on it. (it depends on your mortgage holder)
Short Sales for Buyers: at this point, the process is not regulated, and only banks decide how long it may take, how many offers banks wants to receive, and who essentially would win the auction. If you are patient and determine to get short sale deal, do it! Please remember, the listing price of short sale is usually not what the bank is willing to accept, and there are other deals out there.
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Marina Vialtsina
Showing posts with label credit history. Show all posts
Showing posts with label credit history. Show all posts
Tuesday, May 26, 2009
Wednesday, February 6, 2008
Financing...
Before you start looking at Salt Lake City homes, it’s a good idea to know how you will finance the purchase of your new home and how much of your own money you will need to accomplish this. Keep in mind that the better your credit is, the less you will need in most cases.
The costs are listed below:
• Down Payment : Most houses are bought with 0% to 20% down. There are many loans for a variety of needs. If you put 20% or more down, there is no private mortgage insurance.
• Closing Costs : Closing costs and prepaid taxes & insurance will typically be another 2%-4% of the purchase price. However, the Buyer can negotiate with the Seller to pay for the Buyers closing costs and add them to the price of the house. The lender allows this, so the Buyer usually doesn't need to save this amount to buy a home.
• Inspections: A home inspection will cost $300 or more and is worth it. The Buyer should plan on paying for this at the time of inspection.
Other concerns for down payment:
• Your Credit: If your credit is good you will have more options.
• Once you’ve saved some money, what other things beside the purchase of real estate will you need that money for?
• The type of house you are buying (If you're buying a fixer-upper, you'll need money to fix it after you buy it)
• 20% down. No private mortgage insurance (PMI) if you put 20% down. This matters more if you will be staying in the house for a long time. However, it usually makes sense to buy homes with little down if the price of real estate is going up, and try to eliminate the PMI later as a result of your appreciation
.• Interest rate. Some low down payment (0% down) programs have higher interest rates, but many are quite competitive.
The costs are listed below:
• Down Payment : Most houses are bought with 0% to 20% down. There are many loans for a variety of needs. If you put 20% or more down, there is no private mortgage insurance.
• Closing Costs : Closing costs and prepaid taxes & insurance will typically be another 2%-4% of the purchase price. However, the Buyer can negotiate with the Seller to pay for the Buyers closing costs and add them to the price of the house. The lender allows this, so the Buyer usually doesn't need to save this amount to buy a home.
• Inspections: A home inspection will cost $300 or more and is worth it. The Buyer should plan on paying for this at the time of inspection.
Other concerns for down payment:
• Your Credit: If your credit is good you will have more options.
• Once you’ve saved some money, what other things beside the purchase of real estate will you need that money for?
• The type of house you are buying (If you're buying a fixer-upper, you'll need money to fix it after you buy it)
• 20% down. No private mortgage insurance (PMI) if you put 20% down. This matters more if you will be staying in the house for a long time. However, it usually makes sense to buy homes with little down if the price of real estate is going up, and try to eliminate the PMI later as a result of your appreciation
.• Interest rate. Some low down payment (0% down) programs have higher interest rates, but many are quite competitive.
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