June 12th, 2009:

How is a short sale better than foreclosure for a seller?

Jun 12th, 2009
by edsmith.
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We are asked this question many times each and every week. There are many advantages to the short sale, but a few of the biggest ones are: Your credit score is less severely impacted; You will not risk having a deficiency judgment filed against you; You can be eligible for a Fannie Mae loan in two years instead of five; If you have a security clearance, it should not be negatively impacted; Overall, your credit will recover much more quickly.

Additionally, while a foreclosure may remain on your credit report for 7 – 10 years, it really never goes away. It will remain in the public records forever.

Why do short sales take so long to complete?

Jun 12th, 2009
by edsmith.
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That old adage “garbage in, garbage out”, probably best sums up the problem. The banks and lenders are being inundated with hundreds of thousands of short payoff proposals that don’t stand a chance of EVER seeing the light of day. The offers must fit within certain parameters to be approved. While our personal short sale success rate is more than 90%, the national average is only 25%. Were it not for the 75% “garbage”, the short sale process would be far more efficient and the real estate markets could see genuine recovery much more quickly.

Q: When does the $8,000 new buyer tax credit expire?

Jun 12th, 2009
by edsmith.
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The new buyer tax credit applies if you are a first time buyer and close on a primary residence between January 1st and December 1st 2009.  However, a bill has just been introduced that would not only raise the tax credit to $15,000, but would also make the credit available on any primary residence purchase, even if not the case of a first time buyer. The bill would also eliminate the current income ceilings of $75,000 for individuals and $150,000 for couples.