Phiroum Svy, Covington, WA. Residential Homes, Associate Broker

I love living in Covington. Remember the days where there was only one Johny's supermarket and a Valley Bank. People told me I live in the boonies. Well look at the "boonies" now. We have roundabouts which I thought at first the city was nuts, but it turned about very well. I haven't seen any traffic congestions yet and so far no accidents that I've witnessed. No more worries about power outages in these intersections.

Even though I often wonder where all these people come from when so many cars on Kent-Kangley. Nevertheless it still flows smoothly. The recent new addition to the community of Costco, L/A Fitness, Home Depot and many other restaurants, made me not ever want to leave Covington.

The great schools we have in Covington makes it even more desirable. What more could you want in small family-friendly quaint town.

For the buyers who hasn't yet heard. Here are some of the details regarding the tax credit for first time buyers that have been released so far - The tax credit has been scaled down to $8,000 from $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

A lot of people are dissapointed that the $15,000 didn't get passed, but $8,000 is better than nothing. So, let's hope that it will be enought to stimulate the real estate market.

This is for everyone out there weathering this market condition. I came accross this Zig Zigglar quote which really hit me in the core. People often tell me that I was ambtious. I just don't feel like one lately.

Your business is never really good or bad "out there,"
Your business is either good or bad
right between your own two ears.

The real opportunity for success
lies within the person and not in the job.

It is easy to get to the top after you get
through the crowd at the bottom.

Success is not a destination, it's a journey.

The most practical, beautiful, workable philosophy
in the world won't work - if you won't.

Motivation is the fuel necessary
to keep the human engine running.

Discipline yourself to do the things you need to do
when you need to do them, and the day will come
when you will be able to do the things you want to do
when you want to do them!

For the homeowners out there who just can't hang on anymore to their mortgages. There are options out there. Some of my clients, although they have heard of short sales, they don't know about the process and that some lenders don't make it easy for you to just walk away.

Banks out there are offering loan modifications. If you think a loan modification would not be appropriate for your individual needs, one solution to avoiding foreclosure could be a short sale. A short sale is an agreement from the lender to allow the you to sell the house for less than what is owed on the mortgage. They will have to consider your current hardship and if the property is worth less in today's market than what is owed. Hardship include change of income due to job loss, reduction in salary, illness, death of an income earner, or divorce. It's important to note the changes in your life, unlike a loan modification, a homeowner does not have to be delinquent to be considered for a short sale. However, a hardship should be demonstrated showing that the homeowner would not be able to remain current on the mortgage in the future due to mounting financial obligations.

Be warned that even though it costs lenders more to foreclose on a property than to approve a short sale, there will be cases with non-approvals from the lender. Working with a lender to negotiate a short sale instead of a foreclosure can also be more beneficial to your credit as well, especially if you want to buy another house in the near future when your finances have improved. According to Fannie Mae, one of the largest mortgage insurers in the country, a foreclosure on your credit record will likely mean it will be between 3 and 5 years before you're able to borrow again. The typical timeframe to buy a new home with a short sale on your record, however, is only two years. A short sale also has a lesser impact to your credit compared to a foreclosure.

The first step of a short sale is to contact your lender and seek their assistance.

The second step is to enlist the help of an experienced real estate agent. An agent who is skilled at handling the negotiation process will not only minimize negotiation time, he or she will also help in limiting the time and costs of marketing the property.

When selecting an agent, don't be afraid to ask questions about their experience.

• How many of the properties are currently short sale properties?
• Does the agent have testimonial letters from short sale sellers?
• If an agent says they have sold a number of short sale properties, how many of the transactions were listings sold, not just where they had the buyer.

The third step is to price the house properly, according to the market. While many buyers would love to "steal" your property for the lowest price possible, remember that the lender is already going to incur a loss and they are not interested in losing more than they have to. I suggest pricing the home at the current market value and reducing it every 2 weeks at a consistent amount so that the lender will see that you've tried hitting the necessary price points until you get an offer. In order to trigger the lender's approval process you need to have an offer/purchase and sales contract to submit to the lender.

The last step is to be prepared for challenges in both the short sale process and in the market place. It will take time to get a lender's approval and to sell the house.

Be aware that, in some cases, not all, a lender will agree to a certain price, but only if the seller agrees to accept a promissory note for some amount of the deficiency - that means money that you will be responsible for paying back.

Once you recognize that you are having problems keeping up with your mortgage payment, take action quickly. Decide whether you want to stay in the home or not. I hope this helps you, the consumer, to know about the short sales process.

**Please seek legal counsel whenever you are in doubt. I don't claim to be an expert or a specialist in short sales, but only to share my knowledge.

A. Budget. Instead of budgeting what you'd like to spend, try using receipts to create a budget for what you actually spent over the last 6 months. With this approach, it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

B. Reduce debt. Generally, lenders look for a total bebt load of no more than 36% of income. Since this figure for some people include their mortgage, which typically ranges between 25% and 28% of income, you need to get the rest of installment debt---car loans, student loans, revolving balances on credit cards---down to between 8 to 10% of your total income.

C. Figure out Expenses. Try wiriting down everything you spend for one month. You'll probably see some great ways to save. Little expenses add up.

D. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

E. Save for a downpayment. Although it's possible to get a mortgage with only 5 percent down---or even less in some cases---you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20% downpayment.

F. Create a house fund. Don't just plan on saving whatever's left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

G. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

H. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.