If you own a home and have made a decision to go through with a “Short Sale” there are some important things you need to know.

•  What is my future debt responsibility?
•  What are my tax implications?
•  How will this affect my credit now and in the future?

These are all questions that can be answered by me or I will direct you on.

Another issue is the credit that is affected during a “Short Sale”. If a “Short Sale” is negotiated but a delinquency is reported, the credit would be affected approximately 50-140 points. The score will also depend on the amount of late or non-payments made before the close of escrow. When a home is foreclosed on the credit would be affected approximately 150-300 points and this will stay on the public record for 7 years or more.  To find more information on Foreclosure vs. Short Sale in regards to future loan potential, credit history, credit score, current employment, security clearances and future employment visit the Certified Distressed Property Expert at www.cpde.com.

Susan Hilton

After a foreclosure Fannie Mae is telling us that you will normally have to wait 7 years before you can purchase another home using money from Fannie Mae. (See chart) Of course if there are extenuating circumstances (who knows what those could be) you could possibly get another loan in 3 years with additional requirements.

With a Short Sale the wait is substantially shorter!

Fannie Mae is a private institution that is federally backed. (seems kind of screwed up doesn’t it!)  They are the LARGEST originator of home loans in the country so you really don’t want to rule them out as potential lenders.

If you have questions about which is better for you – Short Sale or Foreclosure or if you are behind in your house payments or just need to sell – CALL ME!

97-764-2100

• Short Sale or Foreclosure in Bryan College Station Does it Really Matter?
• Short Sale or Foreclosure in Bryan College Station Part 2
• Certified Distressed Property Expert in Bryan College Station Texas
• Do I Qualify for a Short Sale in Bryan College Station? Don’t Let Them Foreclose!
• Are You Behind in Your Mortgage Payment?
• Bryan College Station Foreclosure Specialist Helping Homeowners Avoid Foreclosures CDPE
• Certified Distressed Property Expert in Bryan College Station, Texas

What else needs to be considered when deciding whether to let a house go back to the bank through foreclosure or if a short sale is the best option.

• Future Employment – Credit checks are often done by employers. Remember the foreclosure will show up on the credit report while a short sale will not!
• Deficiency Judgment – This is almost always a surprise to owners whose home is foreclosed. Yes, the bank has the right to go after you for the difference between what they are owed and what they get when the sell it after expenses. And, yes this can be a lot of money!!!  In a short sale this issue is usually resolved PRIOR to the sale so you don’t have a surprise debt later on.

One last issue that should be investigated with an attorney and/or tax accountant prior to the foreclosure or short sale is the “phantom tax.”  The phantom tax being referenced is the forgiveness of debt tax. Normally if you have a debt (the loan not paid) and it is “forgiven” or not collected you may owe ordinary income tax on the amount not collected by the bank.  I don’t know about you but having the IRS after me is one of the last things I want!

So, if you know someone who is behind in their house payments or have lost their job or had an illness or death in the family and they are not going to be able to continue making their house payments PLEASE call me and let me see what we can do to help.  Even if all you do is get information you are much better off KNOWING what is coming than being surprised. Help College Station and Bryan homeowners so we PREVENT foreclosures in our cities which helps ALL our property values hold firm!

For more articles on Foreclosures and Short Sales -

• Short Sale or Foreclosure in Bryan College Station Does it Really Matter?
• Certified Distressed Property Expert in Bryan College Station Texas
• Do I Qualify for a Short Sale in Bryan College Station? Don’t Let Them Foreclose!
• Are You Behind in Your Mortgage Payment?
• Bryan College Station Foreclosure Specialist Helping Homeowners Avoid Foreclosures CDPE
• Certified Distressed Property Expert in Bryan College Station, Texas

SUSAN HILTON Earns Real Estate, Short Sale Designation to Help Homeowners in Danger of Foreclosure

 College Station, Tx – November 16, 2011 – SUSAN HILTON of CENTURY 21 BEAL, Inc. of College Station, Tx has earned the prestigious Certified Distressed Property Expert^® (CDPE) designation, having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education amassed by HILTON will help benefit Bryan and College Station -area residents and communities.

 Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.

“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales,” said HILTON. “It is so rewarding to be able to help families save their homes from foreclosure.”

Alex Charfen, co-founder and CEO of the Distressed Property Institute in Austin, Texas, said that agents such as SUSAN HILTON with the CDPE Designation have valuable perspective on the market, and training in short sales that can offer homeowners real alternatives to foreclosure, which can be devastating to credit ratings.

“These experts better understand market conditions than the average agent, and can help sellers through the complications of foreclosure avoidance,” he said.

The Distressed Property Institute provides live and online courses to train real estate professionals how to help homeowners in distress, with a strong focus on handling short sales.

“Our goal is to help as many homeowners as possible, by educating as many real estate professionals as possible,” Charfen said. “SUSAN HILTON has demonstrated a commitment to struggling homeowners, a commitment that can provide much-needed stabilization to the community.”

For more information about CDPE Designation, visit www.cdpe.com.

For more information about Susan Hilton or how to get assistance if you are behind in your house payments, call Susan at 979-764-2100 or email susan@century21bcs.com

More articles about Foreclosures and Short Sales -

• Short Sale or Foreclosure in Bryan College Station Does it Really Matter?
• Certified Distressed Property Expert in Bryan College Station Texas
• Do I Qualify for a Short Sale in Bryan College Station? Don’t Let Them Foreclose!
• Are You Behind in Your Mortgage Payment?

Short Sale vs. Foreclosure Which is Better for the Homeowner?

So if you know someone who is behind on their home mortgage loan in the Bryan College Station area and you want to give them advice on which is better – a Short Sale or a Foreclosure.  Hate to say it but there is a HUGE difference long term.  Over the next few posts we will compare the two and see how much a difference they really make.

First, lets talk about the definitions of Short Sale and Foreclosure. A Short Sale is when a homeowner sells the house but the bank does not get enough money from the sale to pay off the outstanding loan. When a property is foreclosed the bank takes the property back at the Court House Sale due to a breach of the agreement to pay.

There are many many issues to consider -

• Future home purchases – With a foreclosure you are not eligible for a Fannie Mae backed mortgage (which is a HUGE portion of the housing loans) for up to 7 years. (efanniemae.com)  With a short sale, you are eligible in about 2 years.
• Future investor purchases – With a foreclosure the investor is not eligible for a Fannie Mae backed mortgage for up to 7 years. With a short sale you are eligible in 2 years.
• Other future loans – When you apply for a home loan with ANY LENDER you will be asked to complete a 1003 application. On the application, they ask if you have had a foreclosure or given a deed-in-lieu in the last 7 years. You do NOT have that question for a short sale. The foreclosure will affect your interest rate.
• Credit score – Foreclosure affect is about 250-300 points and will affect the score for about 3 years. Short sale affects are as brief as 12-18 months and should show that the loan was “paid as agreed,” “paid as negotiated,” or “settled.”
• Credit History – The foreclosure will stay on the public record on your credit history for 7 years or more. Short sales are not normally reported except as ”paid as agreed,” “paid as negotiated,” or “settled.”
• Security Clearance – A foreclosure WILL affect security clearance with police, security offices, military or CIA.
• Current Employment – Employers may (and do) check credit reports if an employee is in a sensitive position. A foreclosure may be a case for termination.  Remember a Short Sale is not reported to the credit bureau in the same way therefore should not be an issue.

Susan Hilton – CDPE Certificate

YEA I did it! I completed the Certified Distressed Property Expert course so Century 21 Beal, Inc. can do an even better job helping the homeowners of Bryan College Station, Texas not have to go through the process of a Foreclosure and having a Foreclosure haunt them for life.  Even though I have been working with sellers avoid foreclosures for decades I had never taken the time to “get the certificate”. Now it is OFFICIAL!

More about Foreclosures in Bryan & College Station Texas

Don’t Let Them Foreclose!

We Buy HOMES but Lose Houses

Behind on Your House Payment in Bryan College Station

Frequently Asked Questions about a Short Sale in Bryan College Station, Tx.

The one reality about today’s housing market is that many people have more questions than answers. The following information is intended to help you or someone you know better understand your situation.

Do I qualify for a short sale?

The qualifications for a short sale include any or all of the following:

1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

What is a mortgage modification?

A mortgage modification is a process through which your mortgage lender changes any or all of the following:

• Your interest rate
• Your principal balance (through a reduction)
• Your loan terms (example: from an adjustable to a fixed rate)

This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.

Why would a lender modify my mortgage?

Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.

What do I need to qualify for a mortgage modification?

According to the Making Home Affordable Web site (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:

• Information about your first mortgage, such as your monthly mortgage statement
• Information about any second mortgage or home equity line of credit on the house
• Account balances and minimum monthly payments due on all of your credit cards
• Account balances and monthly payments on all your other debts such as student loans and car loans
• Your most recent income tax return
• Information about your savings and other assets
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable, it may also be helpful to have a letter describing any circumstances that caused your income reduce or expenses to increase (job loss, divorce, illness, etc.)

How do I qualify for a mortgage modification?

The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):

• Loss Mitigation
• Mortgage Modification
• H.O.P.E.

Prior to contacting your mortgage lender you can quickly complete an eligibility test at www.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP).

For a list of mortgage lenders and servicers, visit www.HopeNow.org.

What is a Home Affordable Refinance?

If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.

What if I don’t qualify, can’t afford my home, and owe more than it’s worth?

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents with the Certified Distressed Property Expert® Designation have undergone extensive training in how to process and negotiate short sales.

A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.

What are the qualifications for a Home Affordable Refinance?

According to the resources released by the government, following are a list of qualifications:

• You are the owner occupant of a one- to four-unit home
• The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
• At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
• You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
• You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan.

Looking for someone who knows how to handle a Short Sale? Looking for a CDPE (Certified Distressed Property Expert)? Look no further! Call Susan at Century 21 Beal, Inc.

979-764-2100

So, if you have gotten behind in your home mortgage and you have not been able to successfully complete a loan modification the bank is going to start down the foreclosure path.  Of course you may be able to bring your loan payments up to date but otherwise your options are very limited – there are no more loan options that allow you to stay in the house.

At this point our goal changes. It goes from helping you keep the home and changes to giving you more control over how you leave the house.

WHAT IS A FORECLOSURE?

When someone does not make their loan payments following the agreement made through the loan documents then the bank will foreclose taking back their asset.  Foreclosure is a LEGAL process. During this process the lender (one who owns the mortgage) sells the property to recover the unpaid loan amount. Normally this process begins 30-90 days after you stop making payments. At the foreclosure sale on the first Tuesday of each month at the county court house, the lender will become the property owner if no one else buys the property. In Texas most foreclosures are non judicial – no judge or lawsuit is needed.

POSSIBLE CONSEQUENCES OF A FORECLOSURE

• negative credit rating
• difficulty in being approved for credit in the future
• higher interest rate for loans
• higher insurance rates
• eviction from your home
• house is sold
• deficiency judgement
• legal costs
• tax consequences
• and possibly more!

• eviction
• sale of the house to someone else

HOW CAN I AVOID THIS?

• CALL ME and let me work with you to see if you qualify for a short sale or can get a loan modification!!! Bryan & College Station homeowners behind on their payments should NOT have to go to foreclosure! There are options!

979-764-2100

Are You Behind on Your Mortgage Payment in Bryan or College Station, Tx?

Foreclosures Are Happening in Bryan and College Station, Tx Too!

Bryan College Station Foreclosures Available!

Since going through a foreclosure is one of the most traumatic things that can happen with a family, outside death or illness, if this can be prevented let’s choose THAT option!

Bank of America has published a Home Transition Guide to help provide specific instructions on how to go through the process.

• Customer-Transition-Guide_Bank-of-America

Remember if you are behind on your payments you have several options -

• Make up your payments
• Loan Modification through the lender
• Short Sale so you can get out from under the house payment
• Deed in Lieu of Foreclosure so you can give the house back to the bank without having a foreclosure
• Foreclosure, Eviction and Relocation

Over the next few weeks I will be amending this post and adding links for each of the above topics. I will also be posting ideas and plans for homeowners to consider. My one request is… PLEASE don’t wait until the bank starts calling. If you find you are going to miss a house payment CALL ME and let me help you communicate with the bank and figure out if a loan modification or short sale is an option. The last thing you want is to get behind in your payments, not be able to catch up, have the house foreclosed, be evicted from the house, and then after you lose the home…. owe INCOME TAXES ON THE BANK’s LOSS!!!!!

Last week I had someone call saying they purchased a home, lost their job, lost the home to foreclosure, ruined their credit for years and thought it was all over.  NO! Now they have received a letter stating they had a loan guaranteed by the federal government and now they STILL OWE $58,000 MORE. If they had $58,000 they would have made their house payments. If they cannot pay the $58,000 this debt will be reported to the IRS and is now a federal lien which will not go away.  If they had gone through the Short Sale process rather than the foreclosure process this could have been avoided. So, Don’t Wait if you are behind in your payments!!!

Susan Hilton

979-764-2100

Did you know…

• 2007 Foreclosures increased on a quarterly basis all four quarters of the year… up 75% from 2006
• 2008 Foreclosures increased 81% over 2007 with 3.1 million foreclosure filings. 80% of California & Florida homeowners who missed a payment ended up in foreclosure. By the end of 2008 approximately 2 in every 100 households were in foreclosure. In Florida 4.5 % of all households were in foreclosure.
• 2009 Delinquency ate broke the record again. More than 1 in 8 households were in foreclosure. 12 % of Florida mortgages were in foreclosure
• 2010 January 2010 was the 49th consecutive month wiht year over year increases in home mortgage delinquency rates

So, being behind on a mortgage is much more common than you would expect. If you know someone who is faced with being behind on their house payments or property eviction please let us help them through a short sale so they avoid a property eviction. We work with lenders throughout the country helping the lenders maintain and recover their asset (the home) while also having compassion and understanding with the homeowner. Please don’t let someone you know be like the person in the video below. Going through a lockout is so very traumatic!

 http://www.youtube.com/watch?v=UXep2SsJlHw 

Bryan & College Station, Texas are not immune to foreclosures.  Remember most of the time getting behind is not because of a bad decision it is because of LIFE. It is because employment changed or illness or an unexpected expense. A short sale (where we help you sell before the bank takes the property back) lets YOU be in more control. Call anytime and to just talk about your options. YOU DO HAVE OPTIONS – Don’t let foreclosure be the one chosen for you.

Susan Hilton

979-219-3970

Statistics from RealtyTrac and Certified Distressed Property Experts