With a Short Sale, Foreclosure is Avoided

From EnlightenMe.com

In a short sale, foreclosure is avoided and the owner avoids all the credit problems associated with a foreclosure. With that being said, a short sale is not a quick fix solution.

Why a Short Sale

When a homeowner is upside down in his mortgage (the property is worth less than the amount of the loan) and can no longer meet the mortgage obligation, a short sale is an option to having the bank foreclose. In a nutshell, the owner obtains the bank’s or lender’s consent to sell the property for less than the amount or the lien, and all money is turned over to the bank or lender.

A bank or lender agrees to a short sale because they believe that it is in their best interest to get as much as they can for the property. A foreclosure or bankruptcy costs them time and money, and they may be saddled with a property that is difficult to move.

General Overview

If you opt for a short sale, there are several things involved. The Loss Mitigation Department of the bank or lending institution will want to see your financial statements to get a true picture of your situation, and you cannot be in default on your mortgage payments. You will need to determine the value of your home. Using an agent may also be a problem because you may have to find one willing to work for a lesser rate before the bank will work with you, so in order to be able to do a short sale, you may have to do all the work yourself.

Do not expect a short sale to happen quickly. On average, short sales take from two to four months. During that time, you will still have to remain current on your mortgage payments. In addition, the IRS may have the right to tax you on the proceeds from the transaction.

In spite of all this, the advantage of not going into foreclosure may outweigh all the work necessary for a short sale. Obviously, it is not a frivolous decision.

However, a short sale may not be the best option; in fact, it is probably the last option to pursue before foreclosure. Before considering a short sale, foreclosure, or bankruptcy contact a real estate attorney or your lender to discuss other ways to stay in your home – restructuring your loan, or delaying a couple of monthly payments until you are better able to get a grasp on your financial situation.

Former Real Housewife Alex McCord Unloads Brooklyn Digs

BY MELISSA ALLISON
ZILLOW

The “loudmouth” housewife and her husband, who were derided by her pals for living in Brooklyn, received $2.695 million for the home and split for Australia

Photo: IMDb

Alex McCord and her husband, formerly social climbers on “Real Housewives of New York,” have sold the Brooklyn town house that marked them as déclassé among the housewife elite in Manhattan. They’ve relocated to Australia with their young sons.

Their old home, which went for $2.695 million, is tucked between Brooklyn’s trendy Boerum Hill and Cobble Hill neighborhoods. Built in 1901, the property is configured as a three-family home, with 6 bedrooms and 5 bathrooms.

The owners’ section has 3 bedrooms, including a master bedroom that opens via a bi-fold glass wall onto a landscaped yard. It features a bathroom, a half bath and a master bath that needs to be completed, as well as an office and a media room with radiant heat.

The top floors hold rental units, including one that is occupied by a tenant with rent control.

Although McCord, a self-described “professional loudmouth with inappropriate friends,” no longer has her New York ZIP code, she bucked housewife tradition and kept her husband, Simon.

Tips for a Happy Kitchen Remodel - Watch out for floor gaps

From TheFamilyHandyman.com


Double-check measuring

If you’re keeping your existing floor and replacing your cabinets, you may have to deal with gaps between the old floor and the new cabinets. Base cabinets are usually 24 in. deep, but toe-kick depths vary. Cabinet widths run in 3-in. increments from 6 in. to 48 in. If the new cabinets don’t fit the existing cabinet footprint, you’ll be left with gaps. Be sure the total width of the new cabinets matches the overall width of the ones you’re replacing. Hide gaps smaller than 3/4 in. with molding.

Free and cheap things to do in Miami - Feb. 6-8

By Josie Gulliksen and Teresa Mears |miamionthecheap.com

Miami on the Cheap gives us the scoop on the budget-friendly fun in Miami.

This weekend brings a chance to explore film, fashion, music, food, art and nature. What more can you want?

Filmgate Interactive on Miami Beach is offering several free events. Or perhaps you’d prefer to dance the night away at Beats After Sunset at the Bass Museum Friday night. There are two free classical music concerts this weekend: Orchestra Miami and Alhambra Orchestra. Foodies who like it hot should head to Pinecrest Gardens for the Chili Cook-off.

Fashionistas can spend Saturday night meandering in the Grove during the monthly Fashion Arts Music Night, nature lovers can take the free trolley at Homestead’s Losner Park to Biscayne National Park for the Family Fun Fest on Sunday, and art lovers have their choice of the Perez Art Museum or Miami Children’s Museum, free this weekend with a Bank of America card.

Lights, camera, action
Sitting in a director’s chair has always been a dream of yours, has it? If your heart skips a beat at the thought of a film set, you should pay a visit to the Loews Hotel on South Beach. That’s where Filmgate Interactive’s Tech Playground makes its home Friday and Saturday 10 a.m. to 7 p.m. You can test out cameras, lenses, lights, cranes, dollies and lens accessories plus partake in an interactive set with live actors. And there’s no admission charge.

Sounds heat up as the sun goes down
The Bass Museum is known for art but this Friday night from 8-11 p.m., for a $10 admission free (free for members), you can listen to monster DJ beats and sip on complimentary cocktails on the terrace. Think of it as happy hour or the beginning of your night on South Beach. You can also head inside to check out the latest exhibitions in the galleries, which are open late.

Classic composers and a little bit of swing
Orchestra Miami and the Alhambra Orchestra are both hosting free concerts this weekend, each offering a different take on the classics. Orchestra Miami celebrates the 100th anniversary of Miami Beach with a concert at Collins Park Sunday at 4 p.m. It features popular music from the past century including ragtime, swing and songs from “La Cage Aux Folles.”  Sunday night at 7:30 p.m. Alhambra Orchestra is joined by young musicians in the Youth & Hope concert at Ransom Everglades. They’ll play Tchaikovsky, Schumann and Marquez plus a new work by young composer Anthony Arcaini.

It’s getting hot in here
Pinecrest Gardens is joining the chili cook-off trend with a contest Saturday from noon to 4 p.m. KISS Country FM hosts an afternoon where more than a dozen contestants compete for the top prize in three categories – chili, chili verde and salsa. Brush up on your mechanical bull riding and line dancing skills, get an airbrush tattoo and take selfies with Miami Heat dancers and the team mascot Burnie. Admission is $5.

Groovy four-legged fun at Woofstock 
Dog lovers, break out the tie-dye bandanas, wrap them around your furry friend and get to Woofstock early for a chance at one of 500 doggie bags being given away to the first arrivals during the event Saturday from 10 a.m. to 4 p.m. Before you head out the door know there’s a trio of contests – Grooviest Threads, Gnarliest Trick and Choice Voice – for your dog so make sure your companion is ready to compete. Dogs can also enjoy a lure course, you can adopt a pet, see demonstrations, learn about area rescue groups and experience live entertainment. The event is free.

Report: John Fogerty Lists Beverly Crest Home for $1.549M

BY MELISSA ALLISON
ZILLOW

The legendary singer-songwriter bought the house in 2008 and has rented it out in recent years.

John Fogerty must be tired of looking out this particular back door. The Los Angeles Times reported that he’s asking $1.549 million for the modest Beverly Crest home, which he’s rented out for years.

The 1,920-square-foot, single-story house sits on a knoll amid mature trees. It has 3 bedrooms, 2 bathrooms and vaulted ceilings in the living room. The dining room features wood floors and French doors opening onto the living room and onto the brick patio and backyard.

The most recent owner is listed in property records as “Fortunate Sons, Daughter LLC.” It’s a reference to the Creedence Clearwater Revival song “Fortunate Son,” which Fogerty wrote and sang, and which a host of musicians from Pearl Jam to Cat Power, Death Cab for Cutie and Sleater-Kinney have covered.

Fogerty paid $1.385 million for the house in 2008, and in recent years has listed it for rent at $5,900 a month and up.

The listing agent is Mark Wollman of Hilton & Hyland

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Top 10 Home Improvement Projects - 9

By: Michele Lerner
Realtor.com

Update Your Bathroom

While a full, upscale bathroom remodel project can cost over $50,000 and add only about $32,000 to your home’s resale value, you can make cost-effective minor upgrades. Get a 73 percent return on your investment with these bathroom upgrades: Replace your fixtures and your mirror, repaint the space and jazz it up with some crown molding (depending on your home’s style) and you’ll have a space that looks new. While you’re there, redo the caulk around your tub and shower and replace the grout on your tile flooring. If your tub is in bad shape, you may be able to have it resurfaced rather than replace it.

Writing the Short Sale Hardship Letter

From EnlightenMe.com

A short sale hardship letter is a necessary document you must prepare and present to the mortgage holder when trying to short sale your property. Oftentimes, this letter is the determining factor in the lien holder accepting or rejecting the offer.

Short Sale Defined

A short sale occurs when a homeowner sells his or her property for less than the amount remaining on a mortgage. It is a way to avoid foreclosure and the negative impact foreclosure has on a credit rating. There is still a negative result, but it is not as severe. The homeowner will not make any money on the transaction.

Writing the hardship letter

You are trying to convince the lending institution that the short sale is the only way to avoid foreclosure or even bankruptcy. In so doing, you are demonstrating that even though the bank will receive less than the amount of the loan, they will save money in the end by avoiding the costs of the foreclosure process. They may appear to be so at times, but banks and their officers are not cold and heartless and they do want their interests served.

• To begin with, make a list of every single reason why you cannot meet your mortgage obligations. Be truthful. Once you have finished the list go through and remove any reason listed that was your fault or you could have controlled. Lenders will not be sympathetic to criminal behavior or that around the world trip you took.
• Next, pick out the three most pressing issues that genuinely contribute to your problems – job loss, illness, divorce, and such. Take the time to explain each of these situations fully and completely. Include as much information about how these events had an impact on your decline in income and ability to make payments on the mortgage.
• Keep this letter to a single page. Use standard business letter structure, and keep your paragraphs flush left. Type it if you can.
• In the opening paragraph, state that a change has occurred and it has had a negative impact on your ability to pay your mortgage.
• In the next three paragraphs, explain each of the reasons (one per paragraph,the most powerful one first). State the problem, then explain the impact and how it affected you.
• In the closing paragraph state in no uncertain terms that you cannot pay, have no more options available, and it is necessary to short sale the property. Be clear.
• Then sign and date the document and give it to the lender, your attorney, or your short sale agent.

The lender is not obligated to accept the arrangement. However, if you have done your homework and craft a well-written letter, you should be able to complete the transaction.