LOAN MODIFICATION OR SHORT SALE ... What's best for me?

And, as in most things and as I tell my children ... it Depends! What is your ultimate goal?

IF you are finding yourself in financial straits and feel the need to tighten your expenditures, these are something to consider. It is now no longer necessary for you to be behind in your mortgage payments to get some assistance, but it does depend on your long term goals. The fact of the matter is, if you purchased a home within the last 8-10 years with a minimum down loan, you are probably upside down in equity position. (Anyone who purchased a new car knows that feeling.) The good news is ... you're not alone. A huge segment of the population in general are in the same boat (or house as the case may be). So what to do?

Loan Modification IF you plan to remain in your house for the next 8-10 years or more, have no desire to move up or out and just wish to keep a roof over your head, this may be for you. And, you don't need professional assistance to get it done. Just make the phone call and the packet of information will arrive on your doorstep. But, warning, depending on your Loan Servicer, it takes patience. It may happen quickly or take months, but it does involve lots of paperwork and proving that you need help. And the end result may not be to your satisfaction either. Be aware that Lenders are not reducing the amount of the debt you owe; so, when you're finished with the process, you still owe as much on the house as your did originally and you're still upside down when it comes to equity position. What Lenders are doing is reducing the interest rate on your loan to lower your payments or extending your loan over a greater length of time. So, when it comes time to finally sell that house, you may still be in a short sale situation and/or have to come to the closing table with money to make it work.

Short Sale IF you have the need, desire or situation that requires that you sell the property, then the short sale is your answer. With this you'll need professional assistance from a knowledgeable Real Estate Agent, Lawyer and/or accountant to help you. Here you'll need to list your home for the current market value, find a patient qualified Buyer and trust your professional to assist you through the maize of paperwork required to complete the transaction. Again, this may surprise us all and only take a month to get approval, but experience has shown us it will probably take up to 6 months and often more. And, there's never any guarantee that your Lender will approve the short sale. One more caution, a short sale WILL effect your credit score negatively, so keep that in mind when making your decision.

As in all things relating to contracts, seek professional assistance to protect your rights. Please don't hesitate to call us if we can ever be of assistance.

Whew! 1st Time Home Buyer Credit Extended

It was almost like standing in line for the restroom at the packed stadium ... standing on one foot and then the other just praying that the line moves quickly ... so that our Buyers can close those short sales in time to get their $8,000 first time Buyer Credit. With banks and lenders moving glacially slow to approve short sales, and banks demanding more and more information and requirements from Buyers, it was looking very "iffy" for the deadline. However, on Friday the 6th, all that was averted when President Obama signed the bill extending the tax credits to contracts signed by April 30, 2010, and closing by June 30th. Thank you! Thank you!

Also included in the bill was a broadening of the requirements. Now the income limits have been increased to $125,000 per year for individuals and $225,000 for couples. It has still remained at a 10% of the purchase price, however, so it's only an $8,000 tax credit for anyone purchasing a home at a price of $80,000 or more. Some of the mobile homes in parks will only get a 10% credit, depending on their purchase price. The credit, however, also extends to Buyers who purchase an RV as their living quarters ... at 10% of the purchase price.

Additionally, written into the bill is now a $6,500 tax credit for Buyers who've owned their current home at least five of the last eight years. So, we can now include move-up or down-sizing Buyers, too. Now is a great time to buy a house, and with the government allowing us more time to get the transactions closed, it takes the pressure cooker lid off the process. Call anytime for further details.

ENTER FOR A CHANCE TO WIN $221,000

Just a reminder to everyone to be sure to sign up for a chance to win $221,000 toward a new home in the "Path to your Dreams" Sweepstakes from CENTURY 21. You can enter once a day from your e-mail address until May 16, 2009. There will be 8 second prizes of $5,000 cash, one each in every CENTURY 21 region of the country. And, you may win an "instant" prize of a $10 gift certificate from participating vendors. Just go to the website at www.century21.com/sweepstakes to enter. Good luck!