Ellen Atwood

A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's mitigation department. When the home owner sells the property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of the sale of the property.

Certain circumstances help decide whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.
A short sale typically is done to prevent a home foreclosure but the decision to proceed with a short sale is decided on the most economic way for the bank to recover the amount owed on the property. Sometimes a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are many costs that are associated with a foreclosure.

It is a good idea to speak with your mortgage lender prior to selling your property. Let them know your are having a hardship and are thinking of selling your property with the help of a REALTOR®

A REALTOR® can help you determine if your property is a short sale. REALTORS® have access to the latest market information and homes sales in your area.

PMI is for home buyers who wouldn't typically be able to afford a large 20% down payment.

Private Mortgage Insurance (PMI) is insurance that protects your lender against non-payment if you default on your loan. Private mortgage insurance is to protect your lender, not you. As the buyer of this coverage, you're paying the premiums so that your lender is protected. PMI is often required by lenders due to the higher level of default risk that's associated with low down payment loans.

The average costs of mortgage insurance premiums vary, but they usually are between .5% and 1% of the loan amount, depending on the size of the down payment. For example on a $200,000 loan with a $10,000 down payment, you can expect to pay somewhere around $85 a month. This amount is added to your monthly payment in addition to property taxes and home owners insurance.

There are ways to eliminate PMI over time. You can have an appraisal done on your home. If the value of your home has increased since you purchased it you may be able to terminate your mortgage insurance, once the equity in your home falls below the 80% loan-to-value ratio.

Remodeling can help you eliminate PMI by making home improvements to your home you're increasing the market value of your house, getting you that much closer to the
80% Loan-to-value.

Paying down your mortgage is another option. Making even small
additional payments each month can make a big difference over time. Once
you get that loan-to-value-ratio below 80%, you'll no longer be required to
make PMI payments.

Summit Water & Supply Company is having their annual 2009 meeting on April 14, 2009 @ 7:00pm at the Summit United Methodist Church located at 104th and Canyon Road. If you are interested in moving to the area and want to learn more about the Summit-Waller area please contact me to join the meeting

The Summit-Waller area finally obtained permits the begin construction of the 4 -million gallon water storage tank. The project is expected to be complete in September 2009. This massive concrete structure can be viewed at 9701 50th Ave. E. Tacoma, WA 98446. The tank is expected to meet Summit's storage requirements until 2020.

Summit water completed the relocation/replacement of the water system infrastructure for phase-3 of Pierce County's Canyon Road widening project. The project consisted of 5,600 feet of ductile iron water main, 15 new hydrants and 27 water services with backflow protection. The projects estimated budget was $850,000 and was completed at a cost of $652,600. Nearly $200,000 below budget.

Summit Water & Supply Company has an employment opportunity for their front office. Those interested in applying can go to Summit Water and Supply Company. Resumes for this position will be accepted until 3/31/2009. Position requirements and details can be found here.