Short Sales vs. Foreclosure

The word foreclosure alone just scares people. You see and hear it everyday in the newspaper or on television. It has put a scare on the entire market. One of things that you do not hear much about though is short sales.

A short sale is when you are able to sell your home with bank approval for less than you owe. Most of the time we are able to do these for homeowners that have had a change in their income, unexpected bills, and unforeseen hospital costs, divorce, and often even before they start to default on their payments. Sometimes it is after or even to the point of a foreclosure notice being sent. Many times we are able to postpone the foreclosure process with the bank to get your home sold, and avoid foreclosure all together. Don't let it go to auction if you can avoid it.

Some of the benefits are that when approved by the bank your home can sell for a price lower than anything else comparable on the market making your home standout and get sold while others just hang out on the market.

Another benefit is although a short sale will show up on your credit report as a relief of debt; it will not affect your credit score as bad as a foreclosure. Many times we are also able to relieve the tax burdens associated with a relief of debt also shown as income. If you plan to ever own another home a foreclosure is not something you want on your report. Some people after they short sale their home are able to relieve enough financial strain to avoid bankruptcy if they were also going down that path.

The numbers for homes going into foreclosure are staggering, and we at Bagent's Agents are trying to offer a solution that will help homeowners avoid foreclosure.

If you know of anyone that may be going through this and could use some help, or you would just like more information in general, please contact us immediately.

Fed to hold Tues meeting on mortgage rule change

WASHINGTON (Reuters) - The Federal Reserve Board said on Friday it has scheduled an open board meeting on December 18 to discuss proposed rule changes on mortgage lending to address unfair and deceptive lending practices.

The 10 a.m. EST meeting will consider proposed amendments to Regulation Z, which implements the Truth in Lending Act and the Home Ownership and Equity Protection Act.

The Fed has been criticized for failing to use its authority under HOEPA to help home loan borrowers with poor credit histories. It is expected to propose limiting prepayment penalties for those subprime mortgages during the low "teaser" rate periods before rates reset to higher levels, according to sources familiar with the proposals.

(Reporting by David Lawder; Editing by James Dalgleish)
Copyright 2007 Reuters