Jacksonville FL Short Sale Realtor Mike Linkenauger

How Does a Short Sale Effect Credit?

A lot of homeowners wonder whether putting up their property for a short sale is better than just allowing the financial institution to foreclose it. Some property owners even consider filing for bankruptcy in order to be relieved of their debts. Foreclosure and bankruptcy are just two of the options you have if you are experiencing a severe financial crisis. However, these two options have considerable effects on a lot of important factors in an individual’s life. On the other hand, a short sale, while still affecting these factors, has a significantly lesser impact. Deciding on whether to just allow your property to be foreclosed, to file for bankruptcy, or to perform a short sale depends ultimately on your choice as well as the value of your property. This is why it is important that you learn more about the benefits and the advantages of a short sale VS foreclosure or bankruptcy.

Factors that are affected by a Short Sale and Foreclosure
In order to understand whether a short sale is better than foreclosure or bankruptcy, it is vital that you know the answers to the question: “How does a short sale impact credit?” It is equally important that you also learn the effects of foreclosure on credit. Going over the benefits and the advantages of a short sale over foreclosure will help you decide on the best option for you. While the main question that you should ask is: “How does a short sale impact credit?” you should also take some time to review the other factors affected by performing this type of sale on your property.
Here are the most important factors affected by a short sale:
• Your credit score
• Your credit history
• Future loan application
• Deficiency liability
• Deficiency judgment
• Deficiency amount
On the other hand, foreclosure affects the following factors:
• Your credit score
• Your credit history
• Your credit reports
• Future loan application with a mortgage company
• Future Fannie Mae loan application for a primary residence
• Future Fannie Mae loan application for a non primary residence
• Deficiency liability
• Deficiency judgment
• Deficiency amount

Short Sale Effect on Credit Score
Now that you have a basic understanding of the factors in your life affected by a short sale and foreclosure, it is time that you compare the advantages of the former over the latter. The first question that you should know the answer to is: “How does a short sale impact credit score?”
A short sale, while still affecting your credit score, has a significantly lesser impact compared to foreclosure. Without any records of late payments, your credit score may only be impacted with a fifty point deduction. Late payments have one of the most significant negative effects on credit scores. The average points that you may lose over late payments are the following:
• 40 up to 110 points for late payments of 30 days
• 70 up to 135 points for late payments of 90 days
Foreclosure, on the other hand, can lower your credit score for more than 300 points. If your home has been foreclosed by the financial institution, this is going to stay on your credit record for seven years

Short Sale and Foreclosure Effect on Credit Reporting
The next question that you should ask is: “How does a short sale impact credit history?” If you put up your property or your home for a short sale, this is not going to be listed as an item on your credit history. After a successful short sale transaction, the company handling your mortgage will list the sale as “Settled in Full,” or as “Paid as Negotiated,” or as “Paid.”
A foreclosed property or home will be detailed on your credit history and will remain there for 10 years. This is also going to be permanent in your county’s public records.

Short Sale and Foreclosure Effects on Employment
Now that you have answered your main question of “how does a short sale impact credit?” it is time to take a look at its effects as well as the effects of foreclosure on your employment. A short sale, as discussed above, does not have a credit reporting item. This means that it usually does not have any bearing on your current or future employment. On the other hand, foreclosure, as it is detailed on your credit reports and stays on your history for a long time, has a great impact on your current and future employment. Most employers check the credit history of their employees and their applicants. This means that if you are currently employed, your employer has the right to either re-assign you or even terminate you.

Short Sale and Foreclosure Effects on Future Loan Application
You might be wondering “how does a short sale impact credit and does it affect future loan application? The answer is yes, but only to a minimal. A future loan application with a mortgage company does not require you to declare that you have performed a short sale on your home. On the other hand, foreclosure affects the interest that you will receive in qualifying for a loan with a mortgage company. If you are going to apply for a primary residence backed loan with Fannie Mae, you will be eligible to do so after two years. With a foreclosure, you would have to wait for more than five years to qualify. After a successful short sale transaction, you also would be eligible for a non primary residence backed loan with Fannie Mae after two years. With foreclosure, you would have to wait for seven or more years.
These are the answers to your question: “how does a short sale impact credit?”Now that you also know its benefits and advantages over foreclosure, you can now decide on whether putting up your home for a short sale or allowing it to foreclose is the best option for you. It is always advisable to contact a Short Sale Specialist Realtor in order to better understand the ins and outs of a short sale. Our agents are highly experienced and well determined enough to successfully complete your short sale and get you back into the life you've worked so hard for!

Benefits of a Short Sale VS Foreclosure

You might be facing a possible foreclosure on your home or even bankruptcy that has led you to the question of whether to just walk away and allow the lender to foreclose your property. However, allowing this to happen will greatly impact a lot of factors in your life, most especially your credit. This is why it is important that you should consider short selling your home.

There are many advantages and benefits of a short sale VS foreclosure. The most important benefits of a short sale vs. foreclosure are related to your current credit, your future credit, your employment opportunities, and your deficiency liability. If you are still considering foreclosure rather than short selling your property, here are some of the benefits and the advantages of a short sale that might change your mind.

Benefit # 1: A Short Sale Has Lesser Impact on your Credit Score

A short sale, while still affecting your credit score, only has a minimal effect on it. A fifty point deduction from the credit score usually follows a short sale on a property. Late payments usually have the biggest negative impact on credit scores after a short sale has been performed. These can affect your credit score with a thirty point deduction, or even more.

On the other hand, if you allow foreclosure on your property, your credit score will suffer from a three point deduction or more. This will even stay and reflect on your history for ten or more years. This is one of the reasons as to why you should consider short selling your property rather than just awaiting foreclosure.

Benefit # 2: A Short Sale is usually reflected as “Paid” on your Credit History

One of the greatest advantages and benefits of a short sale VS foreclosure is that this does not have a credit report that shows up on your credit history. After your property has been sold, the company who handles your mortgage will report this on your credit history as “Paid as Negotiated,” “Settled in Full,” or simply as “Paid.”

However, with foreclosure, this will be detailed on your credit history and will stay on your credit record for ten years. Aside from these, it will also be permanently recorded in your county’s public records. This disadvantage of foreclosure should be another reason as to why you should stick with a short sale rather than foreclosure.

Benefit # 3: A Short Sale usually does not have a bearing on your Current Employment

Another of the greatest benefits of a short sale VS foreclosure is that this is not reported as an actual item on your records. This means that it usually does not have any bearing on your current employment.

With foreclosure, you are already considered as an individual in a sensitive situation. This can have a negative effect on your current employment. Your employer reserves the right to check your credit scores and will do so actively. Foreclosure is usually a ground for termination or re-assignment.

Benefit # 4: A Short Sale usually does not affect your Future Employment

As discussed above, a short sale is not reported as an actual item on your credit record. Short sales usually do not affect the future employment of individuals who have performed a short sale on their properties. This means that you do not have to worry about not being qualified for future employment.

On the other hand, foreclosure is one of the most negative factors that can affect your future employment. As this is one of the factors that most employers look at, if your property recently faced a foreclosure, you might be disqualified from the job that you are applying for.

Benefit # 5: A Short Sale does not affect your Application for a Future Loan with a Mortgage Company

If you would like to apply for a loan with a mortgage company even after performing a short sale on your property, you can do so without worrying about your application. This is because you do not have to declare that you have recently put up your home for a short sale. This is one of the advantages and benefits of a short sale VS foreclosure.

On the other hand, your application for a loan will be affected by foreclosure. One of the questions that you would have to answer in applying for a loan with a mortgage company is “have you had property foreclosed upon, or given title, or deed in lieu thereof in the past seven year?” If your answer is “yes,” then you are required to offer an explanation before approval. With a yes, the interest rate that you will receive with the loan will be affected.

Benefit # 6: A Short Sale results in a Lower Amount of Deficiency

Another of the greatest advantages and benefits of a short sale VS foreclosure is that you only have to suffer from a lower amount of deficiency. With a short sale, your property may be sold at its market value, or near its market value. In most cases, this value is greater than the amount that you will get with a foreclosure. The best thing about this is that, at most times, the deficiency is usually forgiven. Short sales also help cut the losses of your lenders, so if you want to do the ethical thing, you should choose to put up your property for short sale.

With foreclosure, your home will be subjected and presented to a public sale or auction. If your home will not be sold through these processes, it will go through the REO system of the bank. This does not only results in a longer processing and selling time of your property; it also has the potential of being sold at a significantly lower amount and a higher deficiency.

These are just some of the advantages and benefits of a short sale VS foreclosure. Taking a closer look at all these benefits of a short sale VS a foreclosure will help you determine the best path to take. If you care about your credit score, your records, and your employment, you should definitely consider short selling your property rather than just allowing it to go on foreclosure.

For more information on Short Sales VS Foreclosure or to find a short sale Realtor contact a Short Sale Specialist now 1-877-737-4903!

Wasp Spray More Effective Than Pepper Spray

I know some of you own GUNS but this is something to think about...---If you don't have a gun, here's a more humane way to wreck someone's evil plans for you. Did you know this? I didn't. I never really thought of it before. I guess I can get rid of the baseball bat. I'm starting to believe that wasp spray is more effective protection than pepper spray!

Wasp Spray - A friend who is a receptionist in a church in a high risk area was concerned about someone coming into the office on Monday to rob them when they were counting the collection. She asked the local police department about using pepper spray and they recommended to her that she get a can of wasp spray instead.

The wasp spray, they told her, can shoot up to twenty feet away and is a lot more accurate, while with the pepper spray, they have to get too close to you and could overpower you. The wasp spray temporarily blinds an attacker until they get to the hospital for an antidote. She keeps a can on her desk in the office and it doesn't attract attention from people like a can of pepper spray would. She also keeps one nearby at home for home protection. Thought this was interesting and might be of use.

On the heels of a break in and beating that left an elderly woman in Toledo dead, self defense experts have a tip that could save your life. Val Glinka teaches self-defense to students at Sylvania Southview High School . For decades, he's suggested putting a can of wasp and hornet spray near your door or bed.

Glinka says, "This is better than anything I can teach them." Glinka considers it inexpensive, easy to find, and more effective than mace or pepper spray. The cans typically shoot 20 to 30 feet; so if someone tries to break into your home, Glinka says "spray the culprit in the eyes". It's a tip he's given to students for decades.

It's also one he wants everyone to hear. If you're looking for protection, Glinka says look to the spray. "That's going to give you a chance to call the police; maybe get out." Maybe even save a life. Please share this with all the people who are precious to your life.

Did you also know that wasp spray will kill a snake? And a mouse! It will! Good to know, huh? It will also kill a wasp.

Recently one of our customers asked and wanted to know, "what is a CDD fee for?", so I sent her this information in an email. What CDD stands for is Community Development District Fee. In times past, the developer of a community added the cost of the infrastructure, (electrical, roads, sewer systems, sidewalks, play grounds, community pools, tennis courts, water parks, etc.) into the cost of each home site. Now the developers usually put the cost of all of that into a BOND, the CDD. The bond charge is usually apportioned to the size of each home site.

Some people think this is the only fair way to develop communities. The reason is because the people who live in these new communities pay the price for their development directly, instead of the whole city having to share in the cost for a specific development.

The bond is payable for the improvements over a period of usually 30 years. The cost of maintaining these improvements goes on in perpetuity, yeah forever! The CDD bond is paid off in 30 years buy not the maintenance on the improvements. Usually in this case the streets themselves are private, not public streets. And, sometimes there are no amenities, just the roads, electrical, cable and sewer.

It could be well worth the cost if you know you and your family will be using these facilities, (cost equal to the benefits). Also most people mistakenly think this is a tax and is tax deductible. The bill for the CDD is sent with the tax bill, but is a bond and technically NOT tax deductible.

At the point when a certain percentage of the community is owned by the homeowners and not the developer, the neighbors will run the CDD and not the developers. This gives the homeowners more control of their community, like a Homeowners Association, but will not really change any liability to the CDD itself. The cost of the bond is also usually adjustable, so it is NOT a fixed cost.

And, if this is not confusing enough, I have included the definitions of the legal description of a CDD in Florida Statues. If you would like to call me about this, feel free to call me. I would be particularly interested to know which community you found this in. I might be better able to point to specifics so it makes more sense to you.

Florida Statute 190.003 Definitions of a CDD.

--Ad valorem taxes levied on real and tangible personal property and which are generally referred to as general obligation bonds.

(2) "Assessable improvements" means, without limitation, any and all public improvements and community facilities that the district is empowered to provide in accordance with this act.

(3) "Assessment bonds" means special obligations of the district which are payable solely from proceeds of the special assessments levied for an assessable project.

(4) "Board" or "board of supervisors" means the governing board of the district or, if such board has been abolished, the board, body, or commission succeeding to the principal functions thereof or to whom the powers given to the board by this act have been given by law.

(5) "Bond" includes "certificate," and the provisions which are applicable to bonds are equally applicable to certificates. The term "bond" includes any general obligation bond, assessment bond, refunding bond, revenue bond, and other such obligation in the nature of a bond as is provided for in this act, as the case may be.

(6) "Community development district" means a local unit of special-purpose government which is created pursuant to this act and limited to the performance of those specialized functions authorized by this act; the boundaries of which are contained wholly within a single county; the governing head of which is a body created, organized, and constituted and authorized to function specifically as prescribed in this act for the delivery of urban community development services; and the formation, powers, governing body, operation, duration, accountability, requirements for disclosure, and termination of which are as required by general law.

(7) "Cost," when used with reference to any project, includes, but is not limited to:

(a) The expenses of determining the feasibility or practicability of acquisition, construction, or reconstruction.

(b) The cost of surveys, estimates, plans, and specifications.

(c) The cost of improvements.

(d) Engineering, fiscal, and legal expenses and charges.

(e) The cost of all labor, materials, machinery, and equipment.

(f) The cost of all lands, properties, rights, easements, and franchises acquired.

(g) Financing charges.

(h) The creation of initial reserve and debt service funds.

(i) Working capital.

(j) Interest charges incurred or estimated to be incurred on money borrowed prior to and during construction and acquisition and for such reasonable period of time after completion of construction or acquisition as the board may determine.

(k) The cost of issuance of bonds pursuant to this act, including advertisements and printing.

(l) The cost of any election held pursuant to this act and all other expenses of issuance of bonds.

(m) The discount, if any, on the sale or exchange of bonds.

(n) Administrative expenses.

(o) Such other expenses as may be necessary or incidental to the acquisition, construction, or reconstruction of any project or to the financing thereof, or to the development of any lands within the district.

(p) Payments, contributions, dedications, and any other exactions required as a condition to receive any government approval or permit necessary to accomplish any district purpose.

(8) "District" means the community development district.

(9) "District manager" means the manager of the district.

(10) "District roads" means highways, streets, roads, alleys, sidewalks, landscaping, storm drains, bridges, and thoroughfares of all kinds and descriptions.

(11) "Elector" means a landowner or qualified elector.

(12) "General obligation bonds" means bonds which are secured by, or provide for their payment by, the pledge, in addition to those special taxes levied for their discharge and such other sources as may be provided for their payment or pledged as security under the resolution authorizing their issuance, of the full faith and credit and taxing power of the district and for payment of which recourse may be had against the general fund of the district.

(13) "Landowner" means the owner of a freehold estate as appears by the deed record, including a trustee, a private corporation, and an owner of a condominium unit; it does not include a reversioner, remainderman, mortgagee, or any governmental entity, who shall not be counted and need not be notified of proceedings under this act. Landowner shall also mean the owner of a ground lease from a governmental entity, which leasehold interest has a remaining term, excluding all renewal options, in excess of 50 years.

(14) "Local general-purpose government" means a county, municipality, or consolidated city-county government.

(15) "Project" means any development, improvement, property, utility, facility, works, enterprise, or service now existing or hereafter undertaken or established under the provisions of this act.

(16) "Qualified elector" means any person at least 18 years of age who is a citizen of the United States, a legal resident of Florida and of the district, and who registers to vote with the supervisor of elections in the county in which the district land is located.

(17) "Refunding bonds" means bonds issued to refinance outstanding bonds of any type and the interest and redemption premium thereon. Refunding bonds shall be issuable and payable in the same manner as the refinanced bonds, except that no approval by the electorate shall be required unless required by the State Constitution.

(18) "Revenue bonds" means obligations of the district which are payable from revenues derived from sources other than ad valorem taxes on real or tangible personal property and which do not pledge the property, credit, or general tax revenue of the district.

(19) "Sewer system" means any plant, system, facility, or property, and additions, extensions, and improvements thereto at any future time constructed or acquired as part thereof, useful or necessary or having the present capacity for future use in connection with the collection, treatment, purification, or disposal of sewage, including, without limitation, industrial wastes resulting from any process of industry, manufacture, trade, or business or from the development of any natural resource. Without limiting the generality of the foregoing, the term "sewer system" includes treatment plants, pumping stations, lift stations, valves, force mains, intercepting sewers, laterals, pressure lines, mains, and all necessary appurtenances and equipment; all sewer mains, laterals, and other devices for the reception and collection of sewage from premises connected therewith; and all real and personal property and any interest therein, rights, easements, and franchises of any nature relating to any such system and necessary or convenient for operation thereof.

(20) "Water management and control facilities" means any lakes, canals, ditches, reservoirs, dams, levees, sluiceways, floodways, pumping stations, or any other works, structures, or facilities for the conservation, control, development, utilization, and disposal of water, and any purposes appurtenant, necessary, or incidental thereto. The term "water management and control facilities" includes all real and personal property and any interest therein, rights, easements, and franchises of any nature relating to any such water management and control facilities or necessary or convenient for the acquisition, construction, reconstruction, operation, or maintenance thereof.

(21) "Water system" means any plant, system, facility, or property and additions, extensions, and improvements thereto at any future time constructed or acquired as part thereof, useful or necessary or having the present capacity for future use in connection with the development of sources, treatment, or purification and distribution of water. Without limiting the generality of the foregoing, the term "water system" includes dams, reservoirs, storage, tanks, mains, lines, valves, pumping stations, laterals, and pipes for the purpose of carrying water to the premises connected with such system, and all rights, easements, and franchises of any nature relating to any such system and necessary or convenient for the operation thereof.

History.--s. 2, ch. 80-407; s. 2, ch. 84-360; s. 10, ch. 87-363; s. 2, ch. 91-308; s. 33, ch. 2000-364.

We have created a VERY unique page on our Jacksonville real estate website. We have posted the covenants and restrictions for over 150 neighborhoods in Jacksonville and Northeast Florida. home owners can now view all Jacksonville community Covenants and Restrictions.

Over the last four years, me and my team have worked tirelessly the creating the absolute best real estate website in Northeast Florida, hands down. The main goal when creating our website was to make it a site where a home owner could go to, never even having visited Jacksonville or Northeast Florida in the past, and have ALL the information needed to get completely familiarized with every area and neighborhood, and choose a home confidently. Again, this is all without even ever visited the area.

This was a pretty big undertaking and commitment. With over six hundred content pages to the site, it has been no easy task. Either way, for the most part it is complete! One thing that we did that nobody else had done, we to assemble links to all neighborhood covenant and restrictions on file in public records in the area. We have most all of them posted an the actual individual community pages, but have assembled them all into one page as well. Check it out - http://www.firstcoastre.com/custom7.shtml

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