In terms of the back property taxes owed on a home that is sold through a short sale,  the bank will typically cover this expense and seller’s should be free and clear of this liability  going forward. In most states governmental property taxes convert into a lien on a property as soon as they are due — even before they fall behind, in most areas. That just means that your escrow provider and/or title insurer have to clear those tax liens, making sure they are paid up to the date of closing, before they are able to transfer clear title to the buyer.

In the average short sale situation, what happens is that the seller’s bank(s) has to direct some of the proceeds  from the sale of the home  to cover; any back taxes on the property, agent commissions, transfer taxes and such before they can apply the rest of the sale price to cover the outstanding mortgage balance(s). When escrow closes, and I mean starting the day of or the day after, the buyer is responsible for property taxes incurred from that day forward.

In some transactions, though, there are back expenses that are not extinguished by a short sale.

The most common are homeowners association dues that are not paid off or waived in the short sale. Some HOAs will continue collection efforts on back dues — not as a lien against the property under its new ownership, but as a personal debt of the former homeowner.

The other are second or even third mortgages in which the lender expressly agreed to let the short sale go forward on the condition that the seller or former homeowner pay some or all of the outstanding balance over time and did not agree to a full release.

Such terms would be expressed and  would be pursuant to  the short sale approval agreement, so you would be made aware of  such obligation if the lender does not agree to a full release.

Now to the question of paperwork. At or just after closing, depending on where you live, you should receive a document on legal-sized paper called a HUD-1 closing statement. As with any real estate transaction, hang on to that just in case you don’t get any additional paperwork from your lenders.

To the extent that some portion of your mortgage balances were forgiven by the banks, that gap — that deficiency — is normally subject to income taxes. It’s called cancellation of debt income, or CODI.

This sort of “income” (essentially a loan that was forgiven) is usually documented by the bank sending you a Form 1099-C, in January — just as if you’d earned that income. So, you might see two of these statements in the mail early next year.

I say “might” only because some of the mortgage lenders that are no longer operating as banks or lenders aren’t sending these statements out anymore. In that event, your HUD-1 might end up being the only documentation you receive.

That said, if you close your short sale before January 1st, 2012  chances are you’ll be exempt from income taxes on your CODI “income” under the Mortgage Forgiveness Debt Relief Act of 2007. The act applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012 (it is believed that  this relief will  be extended  however,  at the time this  blog posted was written  an extension has  not  yet been signed into law).

You’ll still need to let the IRS and your state tax agency know of your short-sale specifics, but you’ll be able to invoke the terms of the act (most states now have parallel provisions) to avoid being charged with income taxes on the forgiven debt, assuming the home was actually your primary residence, your mortgage debt was $2 million or less, and certain other guidelines are met.

Visit this dedicated page on the IRS website for more details, and best of luck on your personal financial recovery endeavors.

The central Ohio housing market was active last month as more homes were put on the market and in contract compared to last year. There were 2,610 homes for sale that went into contract (but haven™t closed) which was up 44.8 percent over the 1,803 homes put in contract during May 2010 according to the Columbus Board of REALTORS ®.As for inventory, there were 3,723 homes added to the market in May 2011, up 10.6 percent from the 3,366 new listings during the same month one year ago.

In contracts and new listings are both important housing market indicators, having such strong increases in both areas is a healthy sign for the central Ohio housing market.

Currently, there are approximately 15,146 residential homes available for sale in the central Ohio area “ 12,322 single family homes and 2,824 condominiums.

Home prices continue to inch up, with May™s average sale price up 2.6 percent over April. However, May™s average sale price of $158,191 was down 4.7 percent from the same period in 2010.

Homes closed last month reached 1,875, up 15.7 percent over April home closings, but were down 25 percent from May of 2010.

May of 2010 was a busy month for home sales as so many buyers were on their way to the closing table after meeting the home buyer tax credit deadline. But sales are up over 2009 when we were in the midst of the first round of home buyer tax incentives which is yet another positive sign.

The cliché says that there has never been a better time to buy.   The hard data in the housing affordability index confirms that.   The affordability index, which takes into account median income, median home price, and mortgage rates, has been bouncing around in the 180 to 200 range since the beginning of this year “ the highest reading since the index was first used in 1971.

Click here  to view the May sortable housing market report by area.
Click here  to view the entire central Ohio Local Market Update.
 
The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Muskingham, Perry and Ross Counties.

Click here for more information about the central Ohio housing market.

To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Columbus / Central Ohio home sales in March outpaced the previous month by almost 32 percent bringing the total number of homes sold during the first quarter of 2011 to 3,678 according to the Columbus Board of REALTORS ®.

The 1,487 homes sold last month was 31.8 percent higher than the previous month™s sales of 1,128. Year to date sales of 3,678 lag 2010 by 7.9 percent, but are still 6.9 percent ahead of the 2,178 homes sold in the first quarter of 2009.

It’s important  to keep in mind that 2010 home sales were significantly impacted by the second set of home buyer tax credits, by comparison, March closings are actually 9.3 percent higher than homes closed in March of 2009 when the first round of tax credits was available.

In addition, 2,512 homes were put in contract last month touting an 11.5 percent increase over the 2,252 contracted sales in March of 2010.

Homes in central Ohio this year have sold for an average of $143,773, down 3.7 percent from the average sale price in 2010, but up 3.8 percent from the average sale price in 2009. The average price of a home sold in March was $144,975, up 2.1 percent from the previous month ($140,770).

The number of homes listed for sale last month (3,886) dropped almost 22 percent from the previous year (4,972) bringing the total inventory of homes available for sale in central Ohio to 14,370, down 22.3 percent from one year ago.

Home sales follow the simple economic concept of supply and demand, when the supply is higher than the demand, the product, in this case a home, is subject to sell for less. So a decrease in inventory is a positive for our market.

The other positive is, of course, last month™s drop in unemployment to 7.6 percent – the lowest point since January 2009.

There were 2,280 homes listed for sale in Franklin County last month. The surrounding counties of Delaware and Licking saw 316 and 302 new listings respectively.

Click here  to view the March sortable housing market report by area.
Click here to view the entire central Ohio Local Market Update.

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Muskingham, Perry and Ross Counties.

Click here for more information about the central Ohio housing market.

To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Loan servicers / Lenders will have 30 days to send a borrower a short-sale agreement that includes the list price or acceptable sales proceeds under recent changes made to the Home Affordable Foreclosure Alternatives Program (HAFA), aimed at distressed borrowers who don’t qualify for other government loan modification and foreclosure alternative programs.

Once a sales contract has been initiated, loan servicers then have 30 days to approve or reject the short sale transaction.

The stricter timelines are believed to help speed up the short sale process, which has faced numerous complaints for how long it takes lenders to review and approve short sales often causing buyers to walk away in frustration.

The stricter timelines were a part of several revisions the Treasury Department recently announced to it’s HAFA program–the second major revision to the program since its launch in 2009.

Another big change: Loan servicers / lenders will no longer be restricted on paying second-lien holders, allowing them more freedom particularly when dealing with second-lien holders when borrowers owe less than $100,000. Loan servicers used to be restricted to paying second-lien holders no more than 6% of outstanding loan balance (with an overall limit of $6,000) in exchange for releasing subordinate liens. Second-lien holders have been another big obstacle to completing short sale transactions especially when most second are recourse liens and these lien holders in most instances have the option of selling these debts to collections companies for 8-10% even after the home has gone through foreclosure.

HAFA’s new directives also now forbid loan servicers from deducting vendor expenses from commissions paid to real estate brokers.

The rules are effective Feb. 1. It does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA). See FHA Short Sales.

If you™re facing foreclosure you™re facing some very  important decisions. We want you know you™re  not alone and we are here to help with any questions you may have to assist you in making the best decisions for your situation. There is no charge for this service and we are happy to help! We offer confidential and  professional real estate advice.

Contact us

As local  real estate short sale specialists  we can help you make sense out of your options. If you are a homeowner who is having trouble making your mortgage payment and are interested in exploring your options including the  listing of your home as a short sale, please give us a call today at 614.332.6984. We™re here to help you!

The Opland Group  Specializes in  Real Estate Sales, Luxury Home Sales, Short Sales  in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights    Granville    Grove City    Groveport    Hilliard   Lewis Center    New Albany    Pickerington    Polaris    Powell      Upper Arlington    Westerville    Worthington

Columbus OH Short Sales,  Columbus OH Realtor,  Short Sale Specialists,  Short Sale Process,  Ohio Foreclosure Process and your Options,  Avoid Foreclosure,  Short Sale vs Foreclosure,  What to do when you owe more on your home than it™s worth,  Loan Modification,  New Albany OH Realtor,  Powell OH  Realtor,  Dublin OH  Realtor,  Luxury Home Specialist,  Luxury Real Estate,  Buying a Short Sale or Foreclosure,  How will a short sale affect your credit,  Understanding Short Sales,  Bank of America / Countrywide  Short Sales,  JP Morgan Chase  Short Sales,  Wells Fargo  Short Sales,  IndyMAC  Short Sales,  Citi Mortgage  Short Sales,  PNC Short Sales,  National City Short Sales,  Home Affordable Alternative Program (HAFA),  What™s My Home Worth?

New report tells the tale of foreclosures in central Ohio

The Columbus Board of REALTORS ® (CBR) has just released a brand new report that provides detailed information on local foreclosure, short sale and bank owned housing activity.

œAs foreclosures have been a concern for the entire country over the last few years, we™re often asked about foreclosure activity in central Ohio “ but it wasn™t available, says Rick Benjamin, 2011 CBR President. œThat™s why we decided to provide this information. Now we can see what™s going on locally with regard to short sale, bank-owned and foreclosed properties as well as see how we compare nationally.

The new Lender-Mediated Properties Report provides an in-depth look at the trends related to traditional and œlender-mediated (foreclosure, lender owned, short sale, HUD and VA) listings sold or put on the market within the Columbus and central Ohio Multiple Listing Service (MLS).

According to the report, lender-mediated listings  are declining. The number of homes in this category dropped 18.9 percent, from 3,372 listings in Q1-2010 to 2,734 listings in Q1-2011. Furthermore, the number of new lender-mediated listings during the first quarter of 2011 dropped 4.5 percent.

œREALTORS ® are seeing a turn-around; fewer distressed homes are being added to the market. The entire country has watched foreclosed properties continue to rise for the past four years. To see the inventory of both lender-mediated and traditional homes decline is a positive sign for the central Ohio housing market, said Benjamin.

During the first quarter of 2011, there were 14,370 homes for sale in central Ohio. Over 11,650 of those listings were single-family homes of which 20.2% (2,358) were considered lender-mediated. Of the 2,700 condos for sale, 13.8%, or 376, were lender-mediated.

The drop in inventory is due in great part to the 46 percent increase in distressed property sales “ from 1,130 sales in Q1-2010 to 1,650 lender-mediated home sales in Q1-2011. Total homes sales last quarter was 3,678, of which 44.9 percent were considered lender-mediated.

Click here  to view the full Q1-2011 Lender-Mediated Properties Report.

If you™re facing foreclosure you™re facing some very  important decisions. We want you know you™re  not alone and we are here to help with any questions you may have to assist you in making the best decisions for your situation. There is no charge for this service and we are happy to help! We offer confidential and  professional real estate advice.

If you are buyer, or an  investor, interested in purchasing short sale or foreclosure properties, again please give us a call as we™d be happy to assist you as well!  

The Opland Group  Specializes in  Real Estate Sales, Luxury Home Sales, Short Sales  in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights    Granville    Grove City    Groveport    Hilliard   Lewis Center    New Albany    Pickerington    Polaris    Powell      Upper Arlington    Westerville    Worthington

Columbus OH Short Sales, Columbus OH Realtor, Short Sale Specialists, Short Sale Process, Ohio Foreclosure Process and your Options, Avoid Foreclosure, Short Sale vs Foreclosure, What to do when you owe more on your home than it™s worth, Loan Modification, New Albany OH Realtor, Powell OH  Realtor, Dublin OH  Realtor, Luxury Home Specialist, Luxury Real Estate, Buying a Short Sale or Foreclosure, How will a short sale affect your credit, Understanding Short Sales,  Bank of America  Short Sales, JP Morgan Chase  Short Sales, Wells Fargo  Short Sales, IndyMAC  Short Sales, Citi Mortgage  Short Sales,  PNC Short Sales, National City Short Sales, Home Affordable Alternative Program (HAFA), What™s My Home Worth?

Home sales statistics for central Ohio in 2010 showed marked improvements compared to previous years according to the Columbus Board of REALTORS ® (CBR).The average sale price of a home in 2010 was $158,893, just 0.6 percent lower than the average price of homes sold in 2009. However, the average price of homes sold in 2009 was 2.4 percent lower than 2008 which was 5.1 percent lower than 2007.

Our market saw average sale price increases for eight of the 12 months of 2010. As we™ve experienced annual decreases in our average sale price since 2005, we see ending the year just half a point lower than 2009 as a positive for central Ohio homeowners. Furthermore, these numbers are significantly skewed due to the increased number of distressed property sales, including short sales and foreclosure listings. These distressed properties sell on average for 10-30% below market value which in turn is downwardly skewing these  figures, which are likely to jump significantly as the number of defaults continues to decrease and as these distressed inventories are sold off.

The 1,460 homes sold in December 2010 is just 0.3 percent lower than the number of homes sold in December of 2009. Annual 2010 home sales (19,676) finished 2.8 percent behind 2009 (20,235).

There™s no question the home buyer tax credits had a significant affect on last year™s home sales, providing home buyers with a substantial monetary incentive really helped to energize the market in the first half of 2010.

Homes in contract (which are expected to close in January or February) are up slightly from the previous year suggesting that home sales in the first of the year could be strong.Homes spent an average of 90 days on the market, a reduction of seven days from the average time to sell a home in 2009.

In December 2010, the month’s supply of homes was down to 9.93, the lowest since last June. Month’s supply is the ratio of inventory to sales which takes into account both supply and demand. A healthy market has a 6.5 to 7-month supply of homes, meaning if no new homes were added to the market, it would take about 6.5 or 7 months to sell all the available homes.

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, and Ross Counties.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Home Values  Up 3.8% Year Over Year

November 2010 saw fewer home sales in Columbus and central Ohio than the previous year but showed an increase from 2008. According to the Columbus Board of REALTORS ® (CBR), the 1,325 residential home sales last month was almost 28 percent lower than the 1,839 home sold in November of 2009, but still 15 percent higher than November of 2008.

Sales in November of 2009 were inflated as they reflected buyers trying to close on a home purchase before the expiration of the first 1st-time home buyer tax credit. Although the tax credit was extended (and expanded) in early November, many buyers had rushed to put a home in contract prior to that decision was made to extend the tax credit  deadline.

As November of 2010 and November of 2008 were both months unaffected by a tax credit incentive, it™s a much better comparison.

Homes in contract (which are expected to close in December or January) followed the same behavior as sales “ down from 2009, but up from 2008. There were 1,100 homes put into contract last month versus 1,234 last year and 1,020 in November of 2008.

The average sale price of a home last month was $151,096, up 3.8 percent from the average price of homes sold in November of 2009. Year to date home sale prices in 2010 are showing no change from 2009.

Home sales for eleven of the twelve months of 2010 are slightly lower (3.0 percent) than January through November of 2009.

As home sales have been decreasing annually since the housing boom, the fact that 2010 is no different comes as no surprise, however, what’s different is the previous years showed a much greater decrease for this period – anywhere from -4.2 percent to -13.3 percent. This is actually the lowest decline since 2005. Click here for Ohio home sales statistics
Click here for the national home sales release

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, and Ross Counties.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.
To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Home Values  Continue to Rise in September

Home values continue to rise which is good news for central Ohio. The average sale price for the first nine months of the year is $161,204 up 7.4 percent from the beginning of 2010 according to the Columbus Board of REALTORS ®.

There were fewer homes listed for sale last month than is customary for September. Over the last five years, there was an average of 3,710 homes added to the market during the month of September. However, last month only 2,997 residential homes were added to the already elevated inventory in central Ohio.

Although slightly lower than August, the total residential listings in September (16,728) was still higher than it™s been since August of 2008 when the inventory level rose to 16,975.

Inventory levels have come down over the last year and a half “ which is what we were working towards. When inventory levels are too high, the increased competition forces some homeowners to sell at discounted prices that are too low which in turn often affects the values of other neighboring homes.

In order to re-balance the market, we either need the inventory to decrease or the number of buyers to increase. And since the tax credit incentives brought many buyers into the market earlier than we would have seen otherwise, we have a smaller pool of potential home buyers to absorb the current inventory.

When comparing sales figures to the previous year, we need to remember that home sales have been elevated since April of 2008 due to the tax credits. Even so, sales are still up four percent year to date.

Nationwide, existing home sales – which are completed transactions that include single-family, townhomes, condominiums and co-ops- were down 19 percent. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.

Sales of newly built, single-family homes rose 6.6 percent in September to a seasonally adjusted annual rate of 307,000 units, their best pace since June, according to data released by the U.S. Commerce Department.

The median sale price nationwide for all housing types in September was $171,700, down 2.4 percent from one year ago.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.

Housing affordability is near an all-time record. Mortgage interest rates are almost half of what they were ten years ago and they™re about one-and-a-half points lower than the peak of the housing boom in 2005. At the same time, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record.  

Click here for Ohio home sales statistics
Click here for the national home sales release

The Columbus Board of REALTORS ® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow, Pickaway and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, and Ross Counties.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.
To view residential properties for sale, visit http://www.JasonOpland.com    - Search for Columbus Ohio Homes – Search the Columbus MLS

If you, or someone you know is considering  Buying or Selling a Home in Columbus, Ohio  please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group  Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights   Granville   Grove City   Groveport    Hilliard   Lewis Center    New Albany   Pickerington    Polaris    Powell    Upper Arlington    Westerville    Worthington

Should I stop making my mortgage payments?  This is a question we are frequently asked  by clients who  are thinking about doing a short sale,  and regrettably this is not  a question we can directly answer  as we can not  advise you to breach your contractual agreement with your lender to pay back the money you borrowed to purchase your home.That said, what  we can do is give you some scenarios that can happen if you stop making payments during a short sale and try to help you better understand your options so you can select the course  that’s best for you.

Lender Qualifications

Homeowners should understand that the overwhelming majority of lenders will require a borrower be at least 60 days late before they will seriously  consider their short sale request. FHA Requires borrowers be at least 31 days behind on their mortgage payments before they will consider a borrower for a short sale, HAFA requires borrowers be at least 60 days late.Furthermore, lenders will not typically  authorize a short sale until the seller finds a buyer (if your’s is a FHA Loan or if your lender is partcipating in the Home Affordable Foreclosure Alternative Program (HAFA)  authorization can be granted prior to  the identification of  a buyer). But homeowners should realize that  there is no guarantee that a lender will accept a short sale, and  your lender is not required to let you sell  via short sale.If you begin the short sale process and stop making your payments, should the short sale be denied and you cannot make up the back payments, you may find yourself involuntarily losing your home through foreclosure. Many short sellers enter the process with the thought that if the lender won’t approve their short sale, they are prepared to let the property go. That said, homeowners should realize that they can allow their payments to go 60 days late and then resume their payments, or begin making every other payment if they so desire.

Reasons To Stop Making Payments During A Short Sale

You may not have a choice in the matter.  If you don™t have the money to make payments then you can™t make payments. Plain and simple. Other™s decide to not make payments by choice, and here are their explanations:

To save money for a move.  It™s no secret that many homeowners are underwater and feel they need to get out from under their current situation. They will stop making payments during the short sale process to save up money to move when the short sale goes through.

Lenders  rarely force you to make up the payments.  In most situations  during a short sale, all missed payments are forgiven, but not all the time. If your situation  is so  dire that it prevents you  from making payments, or if you have other financial obligations to which you must allocated these funds  you may consider not making payments. (Deficiency Judgments)

The short sale could be moved to a more critical  time frame  for approval.  If you aren™t making payments, it’s obviously  in the bank’s best interest to close on your short sale as soon as possible to  further reduce  their total  losses. You don™t always  have to be in default in order to be approved for a short sale, however, your  request for a short sale is going to be taken much more seriously and receive higher priority if you  are at least 60 days late on your payments.

If You Miss Payments You May Face Default

Short sales do not always  get approved, some never find a buyer, while the overwhelming majority  are  mishandled by inexperienced real estate agents   falsely claiming to be short sale specialist.  If you make the mistake of hiring an  inexperenced agent there  is a very good chance that you may end up facing foreclosure if you stop making payments. Here are some of the drawbacks if you go into foreclosure:Although both short sales and foreclosure affect your credit, a foreclosure is much worse. After short selling a home, even if you miss payments, you can  purchase  a home again within as little as  2 years.If your home is lost to  foreclosure you won™t be able to purchase home for 7-10+ years. Seven years if you don™t have any other credit issues, pay off all your  delinquencies, and stay up to date on all future payments. Ten years or more if you face  delinquencies  or other credit issues related to your foreclosure.

Why You Might Keep Making Payments During Your Short Sale

If at all possible, making your payments, or resuming your payments  during the short sale could be  advantageous  for a few reasons:

If your short sale doesn™t work out, you can cancel without any penalties.  If the bank doesn™t accept an offer you submit, you don™t get an offer, or the bank denies your short sale for any other reason. You will be in a much better situation then if you had stopped making payments.

Making payments will protect your credit.  Although your credit may not be the most important thing for you to worry about during financial hardship, your score will not reflect late payments. However, the bank  will report your short sale as a settled account  and this could have an affect on your credit. It™s called a Credit Factor Score #22, and it could drop your FICO. (How a Short Sale Affects Your Credit)

It is possible to purchase a new home directly following a short sale if you stay current.  Both FHA and Fannie Mae have guidelines allowing a short sale seller who is current on payments to purchase a home  directly  following a short sale, if the borrower was never delinquent, complies with its “excessive prior mortgage delinquency policy,” and is not obligated to repay the short sale lender, including a deficiency judgment. Why would anyone do this?

If your home is worth dramatically less than what you paid for it, selling it short may be your only option.  You may have to move for any number of reasons such as divorce, employment, or  any number of  other reasons. If your payments are up to date, you could purchase a new home when you move if you stay current.If you™re facing financial hardships, please do not avoid the situation. It will not go away, and a short sale may be the best option. If you can™t make your payments, you can still sell your home in a short sale and avoid foreclosure. Be sure to talk to a lawyer, an accountant, and seek out an experienced short sale agent to give you advice on your personal situation.

If you™re facing foreclosure you™re facing some very  important decisions. We want you know you™re  not alone and we are here to help with any questions you may have to assist you in making the best decisions for your situation. There is no charge for this service and we are happy to help! We offer confidential and  professional real estate advice.

The Opland Group  Specializes in  Real Estate Sales, Luxury Home Sales, Short Sales  in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights    Granville    Grove City    Groveport    Hilliard   Lewis Center    New Albany    Pickerington    Polaris    Powell      Upper Arlington    Westerville    WorthingtonColumbus OH Short Sales, Columbus OH Realtor, Short Sale Specialists, Short Sale Process, Ohio Foreclosure Process and your Options, Avoid Foreclosure, Short Sale vs Foreclosure, What to do when you owe more on your home than it™s worth, Loan Modification, New Albany OH Realtor, Powell OH  Realtor, Dublin OH  Realtor, Luxury Home Specialist, Luxury Real Estate, Buying a Short Sale or Foreclosure, How will a short sale affect your credit, Understanding Short Sales,  Bank of America  Short Sales, JP Morgan Chase  Short Sales, Wells Fargo  Short Sales, IndyMAC  Short Sales, Citi Mortgage  Short Sales,  PNC Short Sales, National City Short Sales, Home Affordable Alternative Program (HAFA), What™s My Home Worth?

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often a more popular choice for homeowners trying to delay a foreclosure rather than permanently block it. Chapter 7 is called a liquidation bankruptcy because the court might have to sell some of your property (by property, we are referring to more than just your home, basically your real tangible assets) to satisfy your creditors, but in return you walk away debt free. Certain property are off limits to being sold according to Ohio™s bankruptcy exemption laws, items deemed as necessities of life such as furniture,  clothing, personal effects, tools of the trade, cars, books, TV™s, and computers for example.      

Chapter 7 Bankruptcy to Delay a Foreclosure

Filing for bankruptcy puts an immediate stop to a foreclosure since the court will issue a stay (an order that delays) that prevents all of your creditors from collecting on any debt that you owe, including mortgage payments. If a homeowner has decided that it is acceptable to give up his home and is looking for temporary relief from being foreclosed on, this is a good delay tactic to employ since it will postpone foreclosure proceedings for two to four months. Once you have come out of bankruptcy, you will also have most if not all of your debts permanently cancelled.

Chapter 7 Bankruptcy to Save Your Home

In order to use a Chapter 7 bankruptcy to save your home from foreclosure you must be current on your mortgage payments and you must make certain that the amount of equity in your home falls within the exemption limits according to  Ohio law. If the amount of equity exceeds those limits your home may be sold to satisfy your creditors. Once you file, be aware that you will probably not be able to back out since the interests of your creditors must be protected.

Details to Consider

A Chapter 7 bankruptcy takes about three to four months in court. Foreclosure proceedings will restart after the case is finished unless you can get rid of your debt and arrange to keep your house through the use of the bankruptcy. You can further postpone a foreclosure if you are married and each of you file separately, the second spouse filing after the first one has finished. You can then top it off by filing for a Chapter 13 bankruptcy which would add another six months of relief.

In Ohio, before a foreclosure sale can happen the lender must issue a notice of default 90 days prior. A bankruptcy filing does not disrupt the 90 day window but actually only delays the sale itself. To maximize the delay of a foreclosure sale, a homeowner should file for bankruptcy after a foreclosure sale has been scheduled.

Overview of the Timeline

Before you are allowed to file for a Chapter 7 bankruptcy, you will be required to attend credit counseling. About a month after you file, a creditor™s meeting will be held. Approximately 45 days after the creditor™s meeting, you will be required to attend budget counseling. 60 days after the creditor™s meeting, the court approves the discharge of your debts.

Chapter 13 Bankruptcy

A homeowner filing a Chapter 13 bankruptcy immediately puts a halt on a foreclosure because the court issues a stay, a legal order that restrains creditors, including your mortgage lender, from attempting to collect on any debt you owe. A homeowner™s reprieve from foreclosure will last until the end of the repayment period if the homeowner abides by the required payment plan approved by the court.

Chapter 13 Bankruptcy to Save Your Home

A Chapter 13 bankruptcy will allow a homeowner to keep their home only if they have enough income to make their current mortgage payment plus pay a portion of their arrears monthly. The bankruptcy court will only approve repayment plans that demonstrate an ability to not only make due on the plan payments but that also shows that other necessary monthly expenses can be covered as well, such as transportation, utilities, etc. In addition, some types of debt, like recent back taxes, must be paid off completely through the repayment plan. In order for the court to approve a repayment plan, the bankruptcy filer must have enough monthly income to cover all of these payments.

A typical repayment plan lasts from three to five years.  If you are able to commit all of your disposable income to the repayment plan, the court will discharge the remainder of any unsecured debt at the end of that period.  Some debts do survive though, such as student loans and child support.

Chapter 13 Bankruptcy to Delay a Foreclosure

Initially, after filing for a Chapter 13 bankruptcy, your foreclosure will be delayed for at least three months while the court reviews your repayment plan proposal.  If the court approves your proposed plan then a foreclosure is postponed and possibly avoided if the filer meets the obligations of the repayment plan.  In the case that the court does not ultimately approve your Chapter 13 repayment plan, you may be able to convert the bankruptcy to a Chapter 7.  This should provide another two to three months of relief from a foreclosure sale.

Benefits of a Chapter 13 Bankruptcy

1. Repay missed mortgage payments over three to five years, the typical lifespan of a Chapter 13 bankruptcy repayment plan
2. Pay none, or a small portion, of the unsecured debts during the repayment plan period with the expectation of having them completely dismissed at the end of the period
3. The ability to contest costs and fees added to any missed payments
4. The potential to challenge the legality of any pending or proposed foreclosure in court
5. Dismiss any second or third liens on your home that would not have a chance of being paid if your home was sold, due to insufficient property value

The Opland Group  Specializes in  Real Estate Sales, Luxury Home Sales, Short Sales  in;    Bexley    Columbus    Delaware    Downtown    Dublin    Gahanna    Grandview Heights    Granville    Grove City    Groveport    Hilliard   Lewis Center    New Albany    Pickerington    Polaris    Powell      Upper Arlington    Westerville    Worthington

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