Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Foreclosure, short sales and deed-in-lieu seem to be the topics thrown out to many home owners when facing some difficult financial decisions. It's important to be aware and realize as individuals every decision you make will have a future impact....for the rest of your life. It's not just a quick fix and often it is well advised to explore all other options and really fight for a loan modification or deferrment.

There are many companies and individuals out there that will offer their services "for a fee" and as with everything, if it is too good to be true it probably is. We are fortunate in Medina County to have an Auditor's office that will review your situation with you and offer assistance free of charge.

The important thing when going through this decision making process is to do a lot of research, speak with a lot of professionals, filter the information you gain and make the best decisions for your particular situation. Even Attorney's, Realtors and Lenders can give poor advice as well as good advice. You are the only one that knows every little detail of your personal finances, the professional only has the bits and pieces of information shared during the conversation. If the professional isn't working "in the trenches" of the type of situation you are in, they may offer a quick fix or simple response that may or may not be your only options.

Lenders have gone through many changes and often it is difficult to get to the decision makers, but it is often well worth the time and effort before jumping in the short sale frey.

Link to this discussion to see a loan officers list of ramifications to some of these decisions so you have a good idea of what you may face in the future. There are circumstances that these are the only options, but don't let anyone whether it be an Attorney, Realtor or Lender pass off a simple or quick response that will affect you for the rest of your life without being fully aware of the decision you are making.

It Seems Someone in Government is Finally "getting it" and working the long process to find a "fix"

http://banking.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=1feca776-9009-4d40-87d4-bd8f679061b1

Having some fun today!

Well written explanation of how interest rates affect home mortgages

Shelia A. Ferrentino, GREEN SFR's Blog
By Shelia A. Ferrentino, GREEN SFR | Agent in 14150



The Cost of Wating

Should I Buy I Buy NOW or WAIT ... Do You Know the cost of Waiting?

If rates start to rise, buyers may find them priced out of the neighborhoods they want to buy in. Below is an example of what a rising rate environment would mean to buyers who are on the fence. 5 years ago, a 30 year fixed rate averaged around 6% and ten years ago, they averaged under 8%.

Let's Look at a Proposed Purchas Price of $100,000 with a 3.5% Down Payment, base loan $96,500

Interest Rate 4.5% 5.0% 5.5% 6.0%

Monthly Pmt $489 $518 $548 $578
(P/I Only)

Monthly $29 $59 $89
Increase

Increased Cost $10,440 $21,240 $32,040
Over Term of Loan

To help you better understand what this means to your borrowing power, the same payment of $500 per month loses almost $16,000 in financing ability with a rate increase of just 1.5%

Rate 4.5% 5.0% 5.5% 6.0%
Loan Amount $102,500 $96,500 $91,500 $86,500

Ohio Association of REALTORS

Here's a good article explaining the ramifications of some of the decisions people are being faced with today are having to make. It's always best to have as much knowledge as possible before making a decision that will impact you and your family's life for the upcoming years.


Ohio Association of REALTORS