The Credit Problems of a Short Sale Vs Foreclosure

Posted by webmaster on Jan 28, 2012 in Short Sale Arizona - Phoenix - Queen Creek | 0 comments

It seems that in some towns in California, Michigan and Florida, nearly one is three homes you drive by are for sale. Most likely these homes are not simply voluntary sales by sellers looking to simply move, but rather, a short sale or a foreclosure. More and more homes are going into foreclosure in this economy, or at least being sold short. A short sale is when a homeowner is under water and agrees with the bank to sell the home for less than what is owed on the mortgage. A Foreclosure is simply the bank repossessing your home.

So, what are the credit advantages of a Short sale over a foreclosure?

If you have to foreclose on your home, you will not only have the embarrassment of being kicked out of the place you are living, but also take quite a hit on your credit score. The average drop in your Credit score will be between 200-300 points. In addition to this, you will not be able to buy a new home on credit for 7 years. For a short sale, the credit score drop can still be up to 300 points, however, as of late it seems like the drop is more in the 100-200 point range. Unlike with a foreclosure, the person will be able to purchase a new home after a 2 year waiting period usually.

The one advantage of going the foreclosure route instead of selling your home short is that you can usually live in the foreclosed home for 4-12 months, mortgage free, in a foreclosure, until the bank forces you to vacate.

Neither option is something anyone ever wants to go through, however it's nice to know the positives and negatives of each, just in case you are in the ever growing group that has to make these decisions.

Check out more information on Credit scores and also the Credit Forum

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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Is it Tough to Work with Desert Schools Credit Union on Finishing a Short Sale?

Posted by webmaster on Jan 27, 2012 in Uncategorized | 0 comments

Hi, my name is Kevin Kauffman, I'm with Keller Williams and Group 46:10, certainly one of Queen Creek's leading real estate teams specializing in short sales. I'm right here to speak to you today about Desert Schools Federal Credit Union. I get about 2 or three calls per week from people similar to yourself who've been doing analysis on Desert Schools Federal Credit Union and whether or not they will do a short sale with them. I got to tell you, Desert Schools has been tough to work with. Over time we have now worked with them so many instances that we've been capable of build some relationships there and understand their process so we can better serve our clients and their members.

Many people come to us as a result of they have heard that it's tough to work with Desert Schools Federal Credit Union and you already know what, that could possibly be true for most people. I believe that we understand their process now and we all know the right way to best set up our clients for success in a short sale with Desert Schools Federal Credit Union.

So, if that's you and you have a mortgage with Desert Schools Federal Credit Union, and also you wish to speak to any individual who has got the experience, then give us a call. We've dealt with them multiple instances and we're positive that we will assist you. We've got an almost 90% success rate, we have closed over 500 short sales now in the last four years. Again, I'm with Group 46:10, Queen Creek's leading short sale teams. Give us a call. You'll be able to reach us at 480-449-6642 or simply fill out a form here on the web site at Group4610shortsale.com. We'll talk to you soon.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Are You Curious About Tax Ramifications With Your Short Sale?

Posted by webmaster on Jan 25, 2012 in Uncategorized | 0 comments

Hello, my name is Kevin Kauffman. I am part of Group 46:10, one of the country's top short sale and real estate businesses located right here in Queen Creek. Are you struggling to make your mortgage payments or are tired of being upside down on your home loan? We at Group 46:10 can offer you various alternatives to alleviate some of these issues. As one of the premiere short sale groups in the country, we've closed more than 500 short sales in the past 4 years and have a completion rate of over 90%.

I'm here today to talk to you a little bit about short sales and tax ramifications. One of the concerns that we hear quite frequently from prospective customers is that they want to do a short sale, but are concerned about the taxes they will have to pay after the sale. Maybe you've heard from others that have done short sales that there were some tax liabilities and wish to find out more.

The Mortgage Debt Relief Forgiveness Act, which ends at the end of 2012, allows homeowners, such as yourself, to not pay taxes on the forgiven amount if the property is their primary residence and the selling price is less than $2.5million. If you're thinking about short selling your property, you need to act quickly because the transaction has to be finalized by the end of 2012 in order to qualify for The Mortgage Debt Relief Forgiveness Act.

Please give us a call or fill out the form on our website, group4610shortsale.com, to find out more about this act or if you have questions about your specific situation. If you don't qualify for this act, don't let that stop you from short selling your home. We have a few different ways to avoid paying taxes as well. A practiced short sale expert, such as myself and my business partner Fred, can discuss those different options with you.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

Avoiding the Dreaded Foreclosure

Posted by webmaster on Jan 25, 2012 in Foreclosure | 0 comments

Sometimes life can get hard. There are unexpected nasty surprises that pop up so suddenly that have the potency to kill your lifestyle. Being diagnosed with a heavy illness is not at all a welcoming thought. Aside from the emotional and physical strain, you must deal with the financial losses as soon as you recover or even as you lie incapacitated in the hospital. It is really a difficult process because these points of stress do not just come at any one point but rather spread throughout an extended period of time. It is almost as if they do not even like you to recover from the sickness. To make matters worse, your period of incapacity has most likely deprived you of employment which makes it harder to meet financial demands.

Many families and homeowners resort to a real estate mortgage in order to secure a loan. In a real estate mortgage, you deal with financial companies who can grant you a loan to pay necessary expenses such as health and hospital bills. The loan is conditioned upon the attachment of security or collateral that you own. A real estate mortgage as implied from the name requires real estate to be attached as security. Real estate can generally be defined as those immovable properties such as buildings or pieces of land that you may own.

Depending on your agreement, you are given a period of time after the grant of the loan from which to pay off your debts. If the period lapses and there are no grace periods left available to you, the financing company will be forced to go to court in order to foreclose on the mortgage. Your building or land being your collateral in this instance will be forfeited in favor of your creditors. You will be deprived of your home just like that.

However you can avoid foreclosure by utilizing the right strategies and coping mechanisms. Right after securing the loan, make sure to immediately plan ahead and start to process how you would pay off your debts. If your current salary is insufficient, then make a financial assessment of your needs in your current situation. If there are options or luxuries that you are currently taking such as cable then you must make a sacrifice and forego of these amenities. If you spend a lot eating out then take the time to start cooking your own meals.

If those sacrifices are not enough, then seriously consider taking a second job if you are able. There are a lot of simple part time jobs available online as long as you know where to look. A family member can also contribute to the financial gap if they can work at this time. Make sure that you explain the situation so that they would be willing to do so.

If this is not enough, sell some of your assets such as jewelry, a second car, and other similarly placed objects. Make sure that you set your priorities straight because deprived of a home is tragic loss.

For more help regarding real estate issues, visit Ohio Community Blog and Ohio Real Estate Articles.

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