I™ve just sold a Single-family property at 5309 Branch Point in Valdosta. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Single-family property at 5309 Branch Point in Valdosta. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Single-family property at 5309 Branch Point in Valdosta. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

Short Sale vs. Foreclosure? You make the call!

I get the question from people all the time: short sale or foreclosure, which is the better option? My knee-jerk reaction is always œAre you kidding? Short sale, of course! This has been mostly because I was always under the impression that a short sale, although still a ding on your credit, was gentler on the score than a foreclosure.

But according to a recent blog post by FICO Banking Analytics, there is no real difference in the affect a short sale or a foreclosure has on your credit score. Both the impact in points and the time to fully recover is about the same for both events.

This put me in a precarious situation. All this time I had lauded the short sale as vastly superior to foreclosure, largely because of its less adverse affects on credit. So I was forced to do further research into which was the better option. In doing so I learned about benefits of a short sale I wasn™t even aware of, and found that the FICO blog was way off.

Each borrower™s credit situation is different, and the way that a creditor reports a short sale to bureaus is different. The reality is that hundreds of thousands of distressed homeowners who have chosen a short sale have experienced a lesser impact on their credit than those who have chosen foreclosure.

In a short sale, a distressed homeowner may be able to obtain another mortgage sooner than someone who has a foreclosure on his or her record. Also, more and more employers pull credit before hiring a potential employee, and a foreclosure can keep you from getting a job.   Some employers pull credit reports on existing employees, and a foreclosure may not bode well in certain industries.  

These benefits stacked against the negatives of foreclosure, including the embarrassment of public announcement and literally being kicked out of your home, make, in my opinion, short sale the reigning champion.

Now you make the call!

Short Sale vs. Foreclosure? You make the call!

I get the question from people all the time: short sale or foreclosure, which is the better option? My knee-jerk reaction is always œAre you kidding? Short sale, of course! This has been mostly because I was always under the impression that a short sale, although still a ding on your credit, was gentler on the score than a foreclosure.

But according to a recent blog post by FICO Banking Analytics, there is no real difference in the affect a short sale or a foreclosure has on your credit score. Both the impact in points and the time to fully recover is about the same for both events.

This put me in a precarious situation. All this time I had lauded the short sale as vastly superior to foreclosure, largely because of its less adverse affects on credit. So I was forced to do further research into which was the better option. In doing so I learned about benefits of a short sale I wasn™t even aware of, and found that the FICO blog was way off.

Each borrower™s credit situation is different, and the way that a creditor reports a short sale to bureaus is different. The reality is that hundreds of thousands of distressed homeowners who have chosen a short sale have experienced a lesser impact on their credit than those who have chosen foreclosure.

In a short sale, a distressed homeowner may be able to obtain another mortgage sooner than someone who has a foreclosure on his or her record. Also, more and more employers pull credit before hiring a potential employee, and a foreclosure can keep you from getting a job.   Some employers pull credit reports on existing employees, and a foreclosure may not bode well in certain industries.  

These benefits stacked against the negatives of foreclosure, including the embarrassment of public announcement and literally being kicked out of your home, make, in my opinion, short sale the reigning champion.

Now you make the call!

In Georgia the title to property remains in the hands of the lender until financial obligation has been fullfilled and loan is paid in full.  Georgia is considered a  title theory state. Georgia is also a non-judicial foreclosure state, which entitles the lender to foreclose on property without  going through  court system, unless they are seeking a deficiency.   When the deed to secure debt is signed it will contain language which allows for the sale of the property to satisfy the loan obligation.

Foreclosure sales take place on the courthouse steps during a public auction  the first Tuesday of the month.

Power of Sale Notice Requirements:

1. Prior to initiating a foreclosure, the lender must send a demand letter requesting the payment of all past due amounts, which gives the borrower ten (10) days to pay these amounts otherwise foreclosure proceedings will begin. If payment is made at this stage no attorney’s fees are assessed.
2. The lender must then publish the notice of the scheduled foreclosure sale in the county newspaper in which the property is located for four (4) consecutive weeks before the sale. The borrower must also receive by certified mail notice at least fifteen (15) days before the date of the proposed sale.
3. Foreclosure sales must take place on the first Tuesday of each month (between 10AM and 4PM) at the courthouse. The trustee will auction the property to the highest bidder at the courthouse steps.

In Georgia, the lenders can also go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure. If the deed of trust does not contain the power of sale language, or a standard mortgage is used, the lender usually must seek judicial foreclosure. The property is then sold as part of a publicly noticed sale. A complaint is filed in county court along with what is known a lis pendens. A lis pendens is a recorded document that provides public notice that the property is being foreclosed upon.

Information courtesy foreclosure.com

Break Free From Unaffordable Mortgage Payments!  

A recent study in Nevada (a state that holds the nation™s highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found the 1 in 4 homeowners chose to œstrategically default, or allow their homes to be foreclosed upon on purpose.    

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they™d soon realize that there™s nothing ˜strategic™ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.    

Education is key. The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I™ve seen this firsthand.

I can help with the education part”it™s up to you to contact me!

Mortgage Relief Fraud: Will You Be the Next Victim?  

Not if I have anything to say about it!

The FBI reported a jump of 71% in mortgage relief fraud investigations from 2008-2009, and expects this number to have grown in 2010.

That™s why it™s my duty to educate homeowners in my community on the cautions they need to take, and what the government has recently done to protect you from unscrupulous individuals and companies who want to take advantage of their desperate situations.

What you need to watch out for if you are looking for mortgage relief assistance:

1.             Upfront fees”just don™t pay them! In fact, they are now illegal!

2.             A request to sign over your deed (this only spells trouble)

3.             Lots of paperwork without the opportunity for review

4.             The claim of government-affiliation

These are just a few red flags you need to be wary of. I™ve created a free report on the homepage of my website that details more of what you need to watch for.

If you are struggling with an unaffordable mortgage and are looking for help, educate yourself. These scammers can be very shrewd and will say almost anything to steal your money.

The Federal Trade Commission has required disclosures of anyone offering mortgage relief services. If you™d like to see an example, check out any of the pages of my website. If a company you are dealing with has not provided these disclosures, please ask why they are not compliant, and proceed with caution!

As a CDPE, you can trust that I have the tools to be in full compliance of FTC regulations, and will always work with your best interests at heart.

If you want viable alternatives to foreclosure, give me a call today. I™m always here to help!

   
3 Reasons the Term œStrategic Default Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider œstrategic default”another term for walking away from your mortgage”if they were underwater (owed more on their home than what it was worth).Now that more than one in four American homeowners is œunderwater, I feel that it™s important for the community to know the truth about strategic default.The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.That™s why it is vital to explain the 3 reasons why the term œstrategic default is misleading:

1.           There™s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage

                         modifications, and refinance (just to name a few) that may keep       you from foreclosure.

2.           The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.

3.           A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community. If you have any questions about what steps you or someone you care about should take next, contact me today!

Check out this new Single-family property that I just posted on my Web site. It is at 5309 Branch Point in Valdosta. This Single-family property has 3 bedrooms and 2 baths. Just like new! Cute 3BR/2BA with decorator colors throughout. Open, split floor plan with wood floors in foyer & great room. Textured walls & ceilings. Double vanity. Privacy fenced backyard. Trey ceiling with crown molding in MBR. All appliances stay. Seller will provide home warranty not to exceed $399.

.