What Does That MEAN?
There’s lots of “terminology” out there in the media and online these days swirling around the real estate market and mortgage investments. So this month we put together
a glossary with words I thought might need a little more clarification.
Fair Market Value: In its most basic form – This is the highest price that a buyer, willing but not compelled to buy, would pay and the lowest a seller, willing but not compelled to sell, would accept.
Foreclosure: The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
Deed-in-lieu: Short for “deed in lieu of foreclosure,” this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.
Short Sale: A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Got a real estate or mortgage word or question you’d like to know more about? Call us today at 727.787.2299! We’ve got the answers!
Should You Move Up in a Down Market?
by Marlene Crawford
While it’s true that this market will make it difficult to get as much for your current home as you would like, the price of that larger home you’ve had your eye on also has gone down. If you consider the price decreases in percentages, NOW is the BEST time to BUY!
For example, if your current home is worth $200,000, and the home you want to buy has a value of $600,000, the difference in value is $400,000. Right?
Not necessarily! With home prices decreasing roughly 10% on average in today’s market, your current home would be worth $180,000, and the home you want to move up to would be worth $540,000. So while your home value has decreased only $20,000, the home you want is now $60,000 less!
Understanding exactly how the shifting economy affects your buying and selling power is not just my job, it’s my passion. While you might hear a lot of media hype expounding on bad-market syndrome or buyer’s market vs. seller’s market, know that in ANY market, I am here to bring you real information… in real time… with real answers on how you can achieve your real estate goals.
For the most accurate look at how you can best meet your real estate and financial goals in today’s market, please give us a call. We can connect you with a trusted Realtor and together we can take a look at all of the possibilities and determine the best time and circumstances for you to make a move. I’m here to help!
Buy? Sell? Wait?
Our markets have certainly run the gamut in recent years and it is tough sometimes for consumers to keep pace with the trends to know how timing can and will affect their 
home buying and selling decisions.
Interested in buying? When the interest rates are low and prices have bottomed out, you’ll find the very peak time for the best buying deals. Financing is critical, so make sure that you have a handle on that credit score and a history of steady work. We’re happy to help you best understand exactly how much you qualify for and what you’ll need to buy now!
Interested in selling? When home prices are peaking and the market has stabilized, it’s a good time to sell your home. Even in a buyer’s market, it’s a great time for consumers interested in the “move-up” market, or buying the next size home. What you may lose on the sale of one house, you usually more than make up for in the purchase of a new home. Call us today to find out just how much you could sell your home for in today’s market.
Still waiting? Not sure if it’s a good time to move, if you have enough for a down payment, or just want to weigh all your options? No problem. We can help you anytime to better understand where you are in terms of market conditions, price analysis, and buying power.
We’re a resource you can trust!
Six Top Tips for Paying Down Debt
This is it — that time of year where we make resolutions and fresh starts. With the average family carrying more than $8,000 in credit card debt, and an economy still
making adjustments, for many, it just makes good sense to put debt resolution a little higher on the annual “to-do” list. To help you do that, let’s take a look at six top tips for getting out of debt.
· Make a list and check it twice. List every credit card you have, the balance owed and the interest rate you’re paying. That will give you the best snapshot of where you are, and allow you to create a plan for where you want to be in the timeframe that makes the most sense for your family.
· Pick a card – but not just any card. Choose the card with the highest interest rate, and adjust your monthly payments so that you’re paying as much as possible on that card until it is paid off, then re-adjust your payments for the next highest interest rate, and so on. Also consider moving balances on cards with high interest rates to cards with lower interest rates.
· Weekly vs. Monthly. If you carry a balance on your credit card, and you’re only able to afford paying the minimum monthly amount, pay weekly installments instead of one monthly payment. For example, if you owe $100 per month, pay $25 per week. Very often, credit card companies accrue interest daily on your balance, so paying only once a month can be detrimental. Switch to weekly and you could find yourself saving anywhere from $10-$100 per month.
· Use your savings to pay down debt. Consider that it just doesn’t make sense to earn 1-3% interest on your savings account while paying 12, 15, or 18% interest on credit cards.
· Cut it up. Choose the card with the most favorable rates and terms, and put it in a safe place (other than your wallet.) Use this card for emergencies and cut the rest up. It may seem extreme, but it is effective. You can’t go deeper in debt if you’re not actively charging on your cards!
· Get creative. Consider ways you can reduce your monthly expenses by $10, $20, or even $50 or more a month and put that towards a specific debt. You can reduce your repayment schedule by months or even years. Some ideas for saving include: Cancelling magazine subscriptions – many could save you more than $10 per month. Instead of going out as a family, consider game nights and family picnics as less expensive alternatives. This can save anywhere from $20-$60 per month or more depending on the size of your family. Check the internet for restaurant and grocery coupons, especially the two-for-one varieties, which can save you another $10-$50 a month or more!
Make this year your year for building wealth and eliminating debt. Little steps here and there may just help you and your family save in some very big ways! If you need us – contact us today! We’re here to help!