2110 Ivy Road   |   Charlottesville, VA 22903

Tips for a Fast Sale

How to Sell Your House Fast: 5 Must-Know Tips to Move Your Property Some times from Realtor.com to help you get the house sold fast.  Don’t stress, we can help will all of these things to ensure that your home is sold on the timeline you choose! TIDY UP TO MAKE YOUR HOUSE STAND OUT! “Pristine houses are more attractive to

Short Sale Thoughts

So about 4 months ago I was asked to represent a client here in Charlottesville on a short sale of a condominium unit that he had purchased about 3 years ago. Ever since then, we’ve learned a LOT of things about short sales and I’ve even been the source of short sale education/updates to other Realtors, attorneys, and potential sellers

Great Chart On Credit Scoring; Check this out if your credit might be in danger

739SEO-Flush-final600.jpgI really like this chart on credit scoring- I receive lots of questions from potential buyers about credit, including how they can improve their credit scores in order to prepare for a home purchase. Whether in the market for real estate or not, these are things that everyone should be aware of pertaining to their credit. If you are interested in learning more about your credit score or looking for ways to improve it, contact me and I will connect you with a lender who can help you through your questions!

Just in from CNNMoney; Trial Loan Modifications DO Hurt Borrowers’ Credit

Only weeks ago, I published a post with updated information from an advanced education class I was taking though the CRS (Certified Residential Specialist) program for Realtors, that was discussing different types of distressed sales and loan modifications to your mortgage, and how they would impact your credit score. In that class, we learned that borrowers were being told that taking advantage of the government HAMP (Making Home Affordable) program should not negatively effect their credit score, and that we should encourage borrowers to strongly consider this option before looking down the road of a short sale or foreclosure. … For those who are behind on mortgage payments and who take the new mortgage arrangement, it is reasonable to expect that their credit would have already been damaged to some extent, just from the mortgage payments that had been missed. However, many other people have been encouraged to look at the HAMP program to re-arrange their mortgage and reduce their payments, even before they are behind on a payment. It is these people who have been squeaking by, trying to make ends meet and who have been making payments, who were being told (even by mortgage officers themselves) that their credit would not be effected.

What is a strategic default?

A strategic default is the decision by a borrower to stop making payments on a home mortgage despite having the financial ability to make the payments. Usually this occurs after a substantial drop in the house’s price such that the debt owed is considerably greater than the value of the property, and is expected to remain so for the foreseeable future.

… As discussed in CRS Course-111 on Short Sales and foreclosures, a strategic default will likely effect your credit score negatively by 140-150 points and will also result in 5-7 negative marks on your credit. This is likely going to be more detrimental than going through the process of a short sale or a loan modification, but is said to not effect your credit score as negatively as filing for bankruptcy. … Before making any decision to pursue a short sale, a foreclosure, a strategic default, or to file for bankruptcy, it is in your best interest to consult with a licensed Realtor, your tax accountant, and an attorney.