What is the difference between a short sale and a foreclosure?

Short Sales and Foreclosures are two financial options available to homeowners who are late on their mortgage payments. There are different reason why homeowner would choose for a short sale versus a foreclosure. In both cases, the owner is forced to part with the home but the timeline and other consequences are different in each situation. Regardless of which approach you choose, always get legal and tax advice before deciding between a short sale and a foreclosure.

Short Sale

foreclosure or short sale

Short sale, also known as a pre-foreclosure, is a sale of a property for an amount that is less than is owed on the loan secured by that property. It is often used as an alternative to foreclosure because it mitigates additional fees and cost to both creditor and borrower. If your mortgage company agrees to a short sale, you can sell your home and pay off all your mortgage balance with the proceeds. In lieu of a foreclosure, banks will often settle for a short sale, because from a lenders perspective, it’s better to recover a portion of a mortgage loan than to absorb a total loss. Allowing both the lender and thehomeowner to end up in a better position. The negative impact on the borrower’s credit score is typically

smaller in a short sale than in a foreclosure, however, a short sale usually involves a lot more paperwork for all parties.

Advantages of a short sale:

• You no longer have a mortgage payment

• You are in control of the sale, not the bank or lender.

• You will spare yourself the social stigma of the “F” word, foreclosure.

• You can buy another home in 2 years, rather than 5-7 years, if you foreclose

• You save yourself the costs and fees usually associated with foreclosure.

• Your home sale will be handled like any other home sale, with respect and dignity.

Foreclosure

7Foreclosures are initiated by lenders only. The lender takes possession of the property, which was guaranteed as collateral for the loan. Many foreclosure takes place when the homeowner has abandoned the home. If the occupants have yet to leave the home, they are evicted by the lender in the foreclosure process. After the property is foreclosed upon, the lender puts it up for sale and uses the proceeds to recover the mortgage balance. Foreclosure takes shorter time to complete than Short Sale, because the lender is concerned with liquidating the asset quickly. Foreclosed homes are auctioned off, where buyers bid on homes in a public process.

 

Consequences of a Foreclosure:

• Stress and uncertainty of not knowing exactly when you will have to leave your home

• Eviction from your home, you will lose your home and any equity that you may have established

• It will damage your credit, affecting your ability to get credit, new housing and maybe even potential employment for a couple of years.

• You will lose any relocation assistance or leasing opportunities.

• The foreclosure is kept on a person’s credit report, forfeiting your ability to get a Fannie Mae mortgage to purchase another home for at least 7 years.

If you are having trouble making your mortgage payments, you should discuss these options with your lender as soon as possible. Be ready to outline your current hardship and explain the reason and why this is a long-term problem. Your mortgage company will need to understand the reason you are having difficulty in order for them to find the right solution for you.

You may have some great feedback, we always love to hear from our readers.
We are also able to give you a FREE analysis of the current value of your home.
Please CLICK HERE to request or call 704-510-0099.

Advertising to sell my house can come in many different forms. Advertising is a communication intended to inform, educate, influence and remind individuals of your product. Effective advertising should capture the prospective customers’ attention and entice them to use your product. It should be catchy and interruptive, it should make people stop whatever they are doing at the moment, long enough to read, hear or watch the ad. Regardless of the method, advertising must be unique, credible, memorable, clear and consistently reflect the unique positioning statement of your business.

Marketing and advertising is an investment, not an expense. Enough money must be spent to provide a media schedule for ad frequency, the most important element for ad memorability.

Word Of Mouth

The most effective form of marketing is the word of mouth, the one that consumers trust above all others and the one that is most likely to drive sales for your company. Word-of-mouth advertising has existed as long as mankind has communicated and traded goods and services. People trust what their friends and family recommends several fold over any other form of marketing.

Social Media

Advertising to sell my house with social media. Another form of effective marketing is Social Media Advertising. It can be through Facebook Ads, Twitter and Instagram among others. Using these tools for advertising gives you the option of being able to target specific demographics. You can target people you have not reached yet and try to engage them. Users don’t always make a purchase through these mediums, however, they can still end up liking your business which gives you the opportunity to create a database of potential customer.

Many other forms of advertising exist, such as televisions, direct mail, billboards, newspapers and magazine. You can try out a few different forms to see which works best for you. The most important thing is for you as the Marketer to focus on engaging your consumer/customer, listen to what they have to say, be part of the conversation about your product. You will have to understand your consumer/customer, what they like about your product and to provide whatever it is they need from you. Let them know that they are important to you and that sharing their opinion is important to you. At the end of the day if the product is good, customers will come and they will keep coming back. So making sure that the customer has a great experience is always the first priority.

Advertising to sell my house

Dupont Real Estate would love to hear from you. If you have any comments or ideas we can share with our clients, please get in touch. If you have a question for our Real Estate Team, please email us at francine@dupontrealestate.com. Your answer may be part of our next blog article.

 

Mistakes Sellers Make

Mistakes sellers make can be avoided. When choosing a Realtor to sell your home, take time to pick one with an excellent reputation for listing homes. Choosing the wrong one will undoubtedly lead to financial and emotional headaches.

Here are several things to consider when choosing a Realtor so that mistakes can be avoided:

1. Hiring a Friend or Family

Choosing a Realtor, simply because she is your neighbor or family can be a very bad idea. Your top priority should be to sell your home for the best price as quickly as possible. By contracting with someone based on a relationship without scrutinizing out their credentials or references, the seller could be tied up in a contract that is not beneficial to them. If something goes awry during the process, it can cause conflict and can ruin or damage the relationship.

2. Listing with an agent who gives you the highest selling price

Choosing a Realtor because they suggest the highest price is a common mistake made by the home seller. You should hire someone who can give a strong market analysis to help you determine a reasonable price for your home and to avoid overpricing. It is important that your home is priced right to attract potential buyers.

3. Choose a Realtor based on Commission

Agents and real estate companies put up their own funds to market and advertise your home. Marketing and advertising will cost them money. So the lower the commission, the less incentive for an agent. A full service agent earning a full commission will often drop everything to handle any challenges that come along.  If a Realtor agrees to a lower commission with very little or no resistance at all, imagine how strong their negotiations will be on your behalf when you receive an offer. The seller needs to have more information about the Realtor’s experience and success and not rely solely on the fact of lower commission.

4. Hiring the so-called “neighborhood expert”

An agent living in the neighborhood doesn’t necessarily mean that they are better equipped to sell your home than someone who does not. Knowledge of the local market isn’t only acquired by living in the immediate neighborhood. A full-time realtor can get up to speed on a neighborhood fairly quickly by extensive research. Remember, selling a home is not location dependent it is about having the business skills.

5. Picking from an Open House

Open houses basic function is to connect the Realtor to other prospective clients. Yes, open houses can sell homes, but the percentage is so low. It is more of a way for the listing agent to advertise and to pick additional clients. Good agents know better than to pin all their selling effort on an open house. They should use their time in more effective marketing methods, not directly to the public but to other agents. By getting other agents interested in your home, your listing agent multiplies your sales force beyond just one individual.

Final Thought:

When choosing a Realtor, find out about their experience and success rate. Check their references and their satisfaction rate from their previous customer. As a seller, you have the right to choose the best person to fit your individual needs. Selling a home can be challenging, but with the help of a reliable Realtor, you can avoid making mistakes and reap the rewards of your sale.

We welcome your feedback and comments. We are also able to give you a FREE analysis of the current value of your home. Please CLICK HERE to request or call 704-510-0099

 


paint matters
One of the easiest and least costly ways to make a dramatic change in your interior décor, repainting a room is often just what’s needed to change your home’s look and feel. However, your great design inspiration can be shortchanged if you choose low-quality paint. Here are five compelling reasons to spring for the best quality coating, courtesy of the experts at the Paint Quality Institute:

Better color retention. If you’re painting to change the color of a room, then you surely want your new hue to last. Top quality, 100-percent acrylic latex paint helps keep your colors true to their day-one appearance. Bargain paints? They tend to pale by comparison.
Better stain resistance. Nothing can ruin a new paint job quicker than a nasty stain – whether it’s due to a careless spill, dirty fingerprints, or something totally unforeseen. If you spend a little more for a quality acrylic latex paint, think of it as buying some insurance against these color calamities. This type of paint is highly resistant to many of the most common stains, especially in higher sheen levels, such as semi-gloss or high-gloss paint.
Paint and primer in one. Top-quality, 100-percent acrylic latex paint offers an important performance advantage over all lower quality, non-acrylic coatings: Many are “self-priming” – in other words, they do double-duty as both primer and paint. Just think how much time and effort you’ll save by having to apply fewer coats!

Good adhesion to various surfaces. Should your painting project involve several different materials, such as wallboard, wood, vinyl, or metal (think not just walls, but doors and trim, too), you’ll be able to paint them all with high-end acrylic latex paint. Go with lower-grade paint and you might have to buy several different kinds of coatings, complicating your decision-making and possibly adding to the cost of the job.
Best overall durability. Let’s face it, while interior painting can be a fun project, most of us are more than happy to put away the brushes and rollers, sit back, and enjoy the new colors. Quality acrylic paint offers exceptional durability, which will keep your room looking great until the next paint inspiration takes hold!

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