So what are they?

• A short sale is where the seller owes more on their home than the current value and they are asking the bank to be ’shorted’ the funds due them.

And what’s the deal…

• Any offer must also be accepted by the Bank(s) holding the loan(s) on the property
  • Banks are slow to respond (could be months and months)
  • Bank must determine if it is in their best interest to do a short sale (is there mortgage insurance on the existing loan?)
  • Bank will determine at what price/value they will accept an offer (could be an amount greater than the asking price)
  • Bank may choose foreclosure over short sale
• It is an “as is” purchase - (no repairs will be done by the seller)
• The seller is not allowed by the bank to contribute any expenses regarding the closing (to pay for a home warranty for example)
• All parties must agree to the terms, buyer, seller, and bank(s)
  • If the seller does not agree with terms from bank - they can cancel
  • If the seller has excessive tax implications that they learn about - they can cancel
• And many more items to consider

And yet they could be a good deal for the person who…

• They sell for near foreclosure prices, and sometimes less
• is not in a hurry with no time frame requirements to meet
• Realizes the “list price” may not be the sales price and is prepared to raise their offer beyond the list price.
• has the patience of Job

Why do I have 3 different scores?  Shouldn’t they all be the same?

It seems like all the scores should be the same, but each bureau does its own computations; coming up with their own numbers.  Also, some companies only report to one credit agency, not like your mortgage that reports to all 3; So some of the credit agencies have different information to base your credit score on.

The lender will only use your mid-score to determine what type of loan you will qualify for.  So if they do need to do any credit repair, they will just work with the one credit bureau reporting your mid score.

If you sit down with your mortgage person (ask me for a couple of very good ones) you can see what is on your credit.  Sometimes, there are a few things that just haven’t been updated.  If you can provide a statement (an online statement is perfect) that shows you have paid off the balance, or reduced the balance on an account.  That could be enough to bring your score up a few points.

If there are any accounts that are old and unpaid, it could hurt your credit to pay them off.  (I never said that determining credit made sense… )  In this case it may be possible to pay it off as part of your closing, and possibly even settle the debt for less money than owed.

Rescoring your credit can be costly; it runs $30 per account per credit bureau.  With several accounts to update quickly, the costs can add up fast.

Managing your credit repair can be tricky.  If you have the time, (you’re not looking to purchase a home or car right away) you can do it yourself.  Choose any of the services that you can get your credit report from, and check it out yourself.  If there are discrepancies;  get it corrected yourself.  Be sure to DOCUMENT, DOCUMENT, and DOCUMENT as you go with certified letters to confirm receipt, copies of everything and be diligent.

• 35% is payment history
  • The most important factor in your credit score is your payment history. Making payments on time is key in keeping and getting your score as high as possible.
• 30% is the amount owed
  • Keep your credit card balances low, at the most have 30% owed and 70% available credit.
• 15% is the history of your credit
  • How long have you had credit established? If you have all new credit, this could hurt you.
• 10% is new credit (less than 6 months old)
  • Getting new credit can help someone with little or no credit, if all of your credit is established, not to worry
• 10% type of credit
  • Diversity is best, a car loan, home loan, and a couple of credit cards.

Great credit requires a delicate balance.  Not too much on credit cards, not only a home loan;  But a balance, on time payments and the time to prove you are credit worthy.

The average rain fall in a year for the Valley is roughly 8″. But what is normal truly. Last year we had less than 4″ for the whole year. This week we have already had over 1 1/2 inches and more is coming, possibly 3″-5″ tonight.

What should you know…

• First don’t drive thru any rushing water, or huge puddles, you don’t know how deep they are, and it takes only inches for rushing water to pull your vehicle down stream
• Be extra careful on the roads.  We don’t normally get this amount of rain.  There are lots of months with no rain, and nothing to wash the oil off the roads from cars.  When the rain does come, our roads are more slick than you are accustomed to even if you come from a rain soaked area.
• The roads dip down to allow the water flow across:  A wash; is any dip in the road where water accumulates, it’s not just a puddle and could be deceivingly deep.
• The Stupid Motorist Law: (that’s really what it is called) has the driver pay for the cost of rescue services if needed to get you out of your car to safety.

Driving in the rain, always be more alert.  Driving in the rain in Arizona; be even more careful.

PFChangs rock and Roll attitude

Originally uploaded by IreneHammond

I wish I could get out to the festivities this weekend. I have clients in from out of state and will be missing it.

The PF Changs Rock and Roll Marathon is always fun to participate in as well as encouraging the athletes. With the same 6 bands returning again this year, the course will keep you moving. The post race concert is featuring Everclear and should finish out the afternoon with a splash.

Come out and cheer these amazing athletes on! Check out the spectator info, and there may still be time for you to volunteer and help out. It takes a ton of volunteers to make an event like this one come together.

Have fun!

I had always thought a credit report is a credit report. That is not true. A consumer credit report and a lender credit report are two different critters. If you go to any of the credit reporting services, the score you get today, and the score your loan officer will get on the same day will not likely be the same. The lenders score will be lower.

Why? Well it has to do with the purpose for getting your credit scoring in the first place. For your personal information, for qualifying for insurance, and other smaller concerns, your score will be higher. If you are applying for a loan, especially a loan to purchase or refinance a home, the factors they take into consideration are weighted differently.

If you have excellent credit a few points either way won’t make a difference. With mediocre credit, a few points either way could increase your payment, or keep you from purchasing a home all together.

When I got started writing Scottsdale-Blog.com I didn’t realize what I was getting myself into. What I have discovered now is that my blog lead me to several other Social Media outlets, Facebook, Twitter, Linked In and more. It also connected me to many, many other Realtors who were also writing blogs and Twittering.

What happened when I started my blog is I started paying closer attention to what would be useful or interesting to write about. I read the other blogs, listened with a new attentiveness to the continuing education classes I took, followed links on Twitter, and learned more about what was happening with real estate in my area and around the country.

I may not write every day, I may not have a huge following on my blog, I do have more knowledge than I had before and because of this I feel I am a much better Realtor today than I was before I came to Social Media.

Welcoming in 2010, there are a few big events to consider bringing in the New Year!

• Scottsdale’s Ultimate Block Party - This is the block party to be at.  Live music, lots of dancing and 7000 people
• Fiesta Bowl Block Party - not just for the football crowd - Rated as a top 10 event by USA Today be sure to consider this Tempe town spectacular for New Years Eve

Besides these events there are many, much more intimate gatherings.  Check with your favorite restaurant or club to see what they have planned.

And have a very Happy New Year!

Wishing you the very best this Holiday Season,

From our family to yours
Merry Christmas