Short Sales?

After attending several classes on the ins and outs of short sale home sales I have determined there is much information that anyone considering a short sale on their home needs to know. First, be aware that your loan holder is looking to document your "hardship" Think of it as a loan application in reverse. They will want to verify everything including your current assets and tax filings! After that there are many legal and tax considerations that will leave you spinning. There are different consequences for every scenario and junior lien holders (helocs or purchase money seconds) can reserve their right to pursue you in court for recourse. It doesn't help that there seems to be many conficting opinions even within one entity such as the IRS! Anyone considering this course of action should first consult their tax accountant to try and determine their possible future tax obligation. There are some bills pending that could provide some clarification and relief so watch for more information to be posted here! Many lenders are currently rewriting loans in more favorable conditions so make sure you take some action if you find yourself in a difficult situation.

Feds Reduce Rate

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.
What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. When the Feds funds rate goes down it doesn’t necessarily mean the 30 year fixed rate will follow. In recent weeks, as investors became convinced that the feds would lower the short term interest rate, 30 year fixed rates fell. Now they should remain low and perhaps go lower.
If you have been waiting to buy a home this is a good time to get back in the market! Please visit my new home search feature on my web site and give me a call to schedule your appointment to find your next home!