Which is the lesser of two evils: foreclosure or short sale when it comes to your credit?
Foreclosure:you lose your home and your credit score drops 200-300 points as it will show mortgage lates resulting in a foreclosure. It will be a few years before you can secure that American dream of home ownership again.
Short Sale: you owe more than your house is worth but the lender, which approves the sale, receives the proceeds from the short sale and the debt is considered settled (sometimes). The tricky part is how you negotiate with your lender as to whether your credit will be tarnished.
Let me state up front that not all short sales go smoothly. And, what happens to your credit depends on how your lender reports the liability to the credit agencies.
It is imperative that you negotiate the reporting terms with your lender. The lender can report your account:
How big a credit score hit also depends on your credit history. Do you have a number of other accounts in good standing with a long credit history? If you do, you will be better off. What will happen though is that your credit profile will make you a higher risk to future lenders or others that may look at your credit score (insurance, credit cards, rentals, etc.)
Is the debt settled upon a Short Sale?
In most cases, the remaining unpaid debt is forgiven by the lender and written off as a loss. The Mortgage Forgiveness Debt Relief Act of 2007 removes the tax liability from $1 million or less of debt forgiven on a primary residence during 2007, 2008, and 2009. Prior to this Relief Act the forgiven debt was taxable as regular income. Now, the tricky part is that most homeowners will qualify for the tax break IF the lender chooses to write off the debt.
So, when negotiating with the lender, make sure the debt will be forgiven. The lender can sue after the short sale for the unpaid balance. If you do not receive a written promise to forgive the debt you will still be liable for the remainder of the loan.
And, to wrap it all up remember a short sale is not for everyone - the lender will request proof there is a real financial hardship, and probably won't agree to a short sale unless you are behind on your mortgage payment.
Unfortunately, a short sale may be the option you need - just make sure you are getting professional assistance.
This is written as my personal opinion not as professional advise.
"Take
time to deliberate; but when the time for action arrives, stop thinking and go in." - Napoleon Bonaparte ELECTION DAY, November 4th. GET OUT AND VOT
E!
Set your clock back one hour: November 2nd at 2am
Special Events :
The Ar-BOO-retum-Minnesota Landscape Arboretum - Fri 8a-6p; www.arboretum.umn.edu
Upcoming Special Events:
Children in Nature: Healthy Development By Design- Nov 6 8:30a-4p; Arboretum, 3675 Arboretum Drive, Chanhassen. www.arboretum.umn.edu/healthydevelopmentbydesign.aspx
Excelsior Arts & Crafts Fair - 30 local vendors selling paintings, photo's, jewelry, clothing and other works. Nov 8 11a-4p. 3820 Grandway, St. Louis Park
4th Annual Chaska Turkey Trot 5K Run/Walk and Gobbler Races- Sat. Nov 15 7-10a register online at www.active.com or call Mary Anderson 651-688-9143 All proceeds support the Muscular Dystrophy Association and Chaska Students. Chaska High School, 545 Pioneer Trail, Chaska
Macy's 46th Annual Animated Holiday Show and Santa Claus - "A Day in the Life of an Elf at Macy's Santa Land" will tell the story of Santa's elves at the North Pole as they prepare for Christmas. Guests will enjoy seeing what happens in a elf's life from waking up and getting Santa's mail to teaching the reindeer how to fly and learning about Christmas traditions. At the end of the display, guests will find Mrs. Claus' holiday bakery and Santa's Toy Stores. Free. Downtown Minneapolis, 8th Floor Auditorium. Nov 8th-December 31-see their website for hours www.macys.com
Holidazzle Parade -Nov. 28 through Dec. 21, Thurs., Fri., Sat., Sun @ 6:30pm. Nicollet Mall between 12th & 4th Street. 612-338-3807 or www.holidazzle.com
Entertainment:
Bell Natural History Museum - 10 Church Street SE, Minneapolis. Free admission on Sundays. Children welcome. This is a portal to experiences that bring people closer to the natural world. It is a small, personable place with big ideas, an historic state treasure, and a landmark destination.
Hopkins Westwind Concert Band - Sun @ 7p; Hopkins Center for the Arts, 1111Mainstreet, Hopkins 952-979-1111
Willie West- Fri 8-11p; School of the Wise, 1750 Victoria Blvd., Victoria 952-361-9463
20 Stories High - Fri, Floyd's, 1758 Arboretum Blvd., Victoria, 952-443-9944
Sports:
Gopher Football Homecoming vs. Northwestern- Sat @ 11a, Metrodome; www.gophersports.com
Gopher Women's Basketball - vs. Concordia; 11/2 @ 2pm, Williams Arena, www.gophersports.com
Timberwolves vs. Dallas -Target Center, Sat @ 7p; www.nba.com/timberwolves
Vikings vs. Houston - Metrodome, Sun @ 12p; www.vikings.com
Minnesota College Hockey Showcase - Excel Energy Center, Saturday, UMB vs. St. Cloud @ 4:07p; MSU vs. UofM at 7:37p; www.excelenergycenter.com
The Arts:
Chaska High School - West Side Story- Nov. 14, 15, 20, 21, 22 @ 7:30; Nov 16 @ 2, Adults $10, Students $8. Order tickets online at www.cvft.org
Chaska Valley Family Theater - A Christmas Carol: Dec. 4-7, The Sound of Music: Feb. 12- Mar 1, 2009, www.cvft.org
Have you considered your vine and branches in the housing market business? How healthy is your vine? Have you trimmed the branches to have a healthy and prosperous business? "I am the Vine; you are the Branches". Have you ever heard that before? Yes, it's in the Bible, John 15:5. It is a very thought provoking verse, but it can be taken beyond the realms of religion.
The vine and branches can be taken into every aspect of our lives - business, personal, and community. Where do you gain the richness that your lives desires? What makes you feel fulfilled? Successful? Are you pleased with yourself?
Yes, our market is struggling. But, I work with some pretty awesome and successful people; who don't know this market is in a downturn. There business is flourishing! I have learned it is only in a downturn if we allow ourselves to believe it is.
What we need to do is have a healthy vine - a healthy business plan. We need to trim the b
ranches that are holding us down:
Are you sitting in your office spinning your wheels and wondering where to go next for your paycheck to pay your bills?
Yes, we are 100% responsible for our business:
Work smarter, not harder. Don't give up, but trim the branches that are weighing you down. If you finish trimming your branches at work, there might also be some in your yard at home!
Life is not about money (but does help pay the bills). Today is the first day of the rest of your life - in business and personally. It is a gift - make sure you use it wisely. And, I believe this is the best blog I have ever written because the most powerful person in the universe has made me see reality and has stood by me when I have faltered and failed. I am glad he is strong and has, and can, carry me!
Did you know... "bad politicians are sent to Washington by good people who don't vote." - William E. Simon
Special Events :
Linda's Celler- Vintage junk, antiques and seasonal décor items. Thu-Fri 10a-5p; Sat 10a-4p; 112 E. 2nd Street, Chaska 612-987-9898
Mustard Moon - Vintage wares, home goods and seasonal décor. Thu-Fri 10a-5p; Sat 10a-4p; 300 No Broadway, Carver
Severs Corn Maze- In Shakopee near Canterbury Park, Sat/Sun 11a-6p; www.severscornmaze.com
Screamtown- Maniacal, freak clowns in the Klown House, the haunted Oak Blood Forest, creepy Hillbilly Motel and the Terror in the Corn Maze. Thu-Sat 7-10pm, $13. 7410 Hwy 212, Chaska www.screamtown.com/index.php
ValleyScare- Valley Fair Amusement Park, Fri & Sat, 1pm-Midnight,Sun. 1-7pm through Nov 1, www.valleyscare.com
Harvest HoeDown- Minnetonka Apple Orchard, Sat/Sun 9am-7pm, www.minnetonkaorchards.com
Upcoming Special Events:
Children in Nature: Healthy Development By Design- Nov 6 8:30a-4p; Arboretum, 3675 Arboretum Drive, Chanhaasen. www.arboretum.umn.edu/healthydevelopmentbydesign.aspx
Excelsior Arts & Crafts Fair - 30 local vendors selling paintings, photo's, jewelry, clothing and other works. Nov 8 11a-4p. 3820 Grandway, St. Louis Park
4th Annual Chaska Turkey Trot 5K Run/Walk and Gobbler Races- Sat. Nov 15 7-10a register online at www.active.com or call Mary Anderson 651-688-9143 All proceeds support the Muscular Dystrophy Association and Chaska Students. Chaska High School, 545 Pioneer Trail, Chaska
Entertainment:
Ninja Code -Fri, $3-Floyd's, 1758 Arboretum Blvd., Victoria, 952-443-9944
Free Fallin -Sat $6-Floyd's, 1758 Arboretum Blvd., Victoria, 952-443-9944
High & Mighty -Fri-Narrows, 2279 3380 Shoreline Drive, Orono 952-471-3352
Sports:
Wild vs. Blue Jackets- Xcel Energy Center, Sat-7p; http://wild.nhl.com
Gopher Womens Soccer- Elizabeth Lyle Robbie Stadium, Fri 7p vs. Wisconsin, Sat 1p vs Northwestern; www.gophersports.com
Movie releases:
High School Musical 3 (G)
Pride & Glory ( R )
Saw 5 ( R )
Tim Burton's Nightmare Before Christmas 3D (PG)
Changling ( R )
The Arts:
Chaska Valley Family Theater -A Christmas Carol: Dec. 4-7, The Sound of Music: Feb. 12- Mar 1, 2009, www.cvft.org
Chanhassen Library -During the month of October, Michael DeSmit will be exhibiting his nature photographs. 952-227-1500 or www.carverlib.org
Your guide to weekend events around Carver, Chanhassen, Chaska, Victoria, and Eden Prairie.
October 17-19,2008
Fri
54°F | 40°F Sat
65°F | 47°F Sun
61°F | 40°F
Special Events:
Carver-Scott Humane Society Adoption- Sat, noon-3pm, Petco, 8020 Glen Lane, Eden Prairie
Screamtown- Four pants-soiling attractions for the price of one (including the frenzied Klown House). NEVER underestimate the creep factor of these circus folk The name should give you an idea of what awaits you inside this chaotic maze of freaks. If that's not enough to make you lose your mind, there are three other events. Terror in the Corn is a spooktacular trip through a 9 foot tall corn maze, the Hillbilly Motel has Bubba and his cousins waiting for you to check in (they won't be leaving the light on for ya), and the Oak Blood Forest is haunted by the Blood family, who roam the woods at night and don't like visitors. You won't find any guides, flashlights or mercy at this place. Note: Be sure to wear good walking shoes at Screamtown (not sure if that's so you don't slip in a mud puddle or so you can make a quick getaway). Thur-Sat 7-10pm, $13. 7410 Hwy 212, Chaska www.screamtown.com/index.php
ValleyScare - Valley Fair Amusement Park, Fri & Sat, 1pm-Midnight,Sun. 1-7pm through Nov 1, www.valleyscare.com
Harvest HoeDown- Minnetonka Apple Orchard, Sat/Sun 9am-7pm, www.minnetonkaorchards.com
The Arts:
Chaska Valley Family Theater - A Christmas Carol: Dec. 4-7, The Sound of Music: Feb. 12- Mar 1, 2009, www.cvft.org
Chanhassen Library - During the month of October, Michael DeSmit will be exhibiting his nature photographs. 952-227-1500 or www.carverlib.org
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