Investment and Vacation Real Estate - Orlando, Florida

The bad news is: Short Sales and Foreclosures are both going to have a negative impact on your credit report. It's devastating.  But, if you can negotiate a Short Sale quickly and successfully, you can minimize that negative impact significantly.

Foreclosure

Without a doubt sellers will incur more damage on their credit report by going through foreclosure. Typically your credit score will take plunge between 200 to 300 points.

Short Sale

Short sales have a far less damaging affect on a seller's credit report. Credit scores typically lose between 80 to 120 points. What happens to your credit down the road? It takes around three years after a foreclosure before a lender will offer a sensible interest rate, whereas for a person who went through a short sale typically waits around 18 months to buy another home at a good interest rate.  When you sell your home via short sale your credit will show late payments and a "settled for less than owed" BUT will NOT show that the home was actually foreclosed.

Salvaging your credit should always be the primary concern when making the decision between a short sale and stopping foreclosure. The savings in interest payments alone should be convincing enough for most people, not to mention your buying power in the near and distant future.

Orlando Short Sale Real Estate - Short Sale Listings Orlando

Survey Reveals Possible Disconnect in First-Time Home Buying Process

RISMEDIA, August 26, 2008-First-time home buyers are primarily concerned with affordability when choosing a new home, but their expectations may be too high relative to their current financial buying power, according to a recent Coldwell Banker® survey conducted among its brokers.

While nearly half of the Coldwell Banker broker respondents reported that affordability was the No. 1 concern for this group, 81% said today’s first-time home buyers consider move-in conditions to be very important when searching for homes. In contrast, only 7% are looking to purchase “fixer-upper” homes that they could buy at a lower price and renovate themselves.

“In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate, LLC. “Today, this group has greater home expectations because they have grown up more accustomed to their parents’ lifestyles. It is important for first-time home buyers to remember that by considering a ‘fixer-upper’ for their first home purchase, they can build equity over time and move up and into their second-stage home that better reflects their expectations.”

Survey findings also suggest that first-time home buyers worry more about credit ratings and approval than they did a decade ago, but less about down payments. This may be because they have saved money themselves, or have received additional support from parents to help their first-time home purchase.

According to 29% of brokers surveyed, first-time home buyers were more concerned with down payments 10 years ago than anything else, while only 17% said this is the biggest concern in today’s market.

Meanwhile, survey respondents said that only 4% of first-time home buyers were worried about their credit scores in 1998, while 14% said it is more of a concern today.

“Owning a home is a great investment that will provide tax breaks, financial gains - as well as considerable joy over the years,” Gillespie said.

“First-time home buyers now have higher standards, placing an increased focus on the financial aspects of home ownership and at the same time, want a larger home they can live in right away.”

Source RISMedia.com   complete story

Orlando MLS    Orlando Home Buyers Agent

Florida Short Sale Agents - Florida Short Sale Realty

A short sale can help people who are behind on their mortgage payments, can no longer afford their homes, but want to avoid foreclosure regardless of good or bad credit. We have a team of certified short sale specialists, who can offer foreclosure prevention services and will negotiate with your lender to help save your credit.

 
What’s a Short Sale? A Short sale is a pre-foreclosure arrangement with a lender, whereby they will allow an owner to sell a property for less than the amount of the current mortgage balance. The owner is unfortunately what lender’s call “upside down.”

Through no fault of their own, many find themselves in a real estate distress situation. If you have no equity or owe more on your property than it’s currently worth, then a short sale might be the best solution. We negotiate with your lender on your behalf to get approval for a short sale. We will also get the lender in most cases to pay all sales costs, title fees, escrow in addition to our sales commissions.

The short sale process can be very complicated, one that requires patience, persistence and a great deal of experience. All lenders prefer to work with Realtors who have mastered the intricacies of short sales. We will PROTECT your interests, financial information and documentation at all times. After your transaction is complete you will be released from all obligations under the mortgage, current and in the future. Also, as long as this property is your primary residence, you may be released from all IRS tax obligations for the forgiven debt (consult your tax advisor). Given the fact our professional short sale services are provided to you at NO COST, if you feel a Short Sale may be the best option for you, call us today for a FREE – NO OBLIGATION consultation.

Visit our Florida Short Sale Center for additional information