Ro Troia

Foreclosure Verses A Short Sale

A short sale is when the real estate sale proceeds fall short of the balanced owed on the property’s loan.  This happens when the borrower is unable to pay their  property’s mortgage.  Instead of penalizing the mortgagor, the lender agrees to sell the property at a moderate loss.   This is an advantage to both parties as  it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. Clients in Boulder ask this all the time and no,  this may not release the mortgagor from their deficiency. Neither foreclosure nor a short sale leaves you free and clear.

Definition made simple of foreclosure: when the borrower is legally removed as owner to their home.  Ownership is terminated due to late payments (default).  The property is sold at a public auction.  Proceeds go to payment of the balance.  When the bank buys the property at the auction, it is then put on the market.

If it’s right for your situation, a short sale would occur before the home goes to auction.  A Realtor lists the home in hopes of selling and presenting an offer to the bank before the sale date.  This date can be extended while the home is listed.  Two basic scenarios: 1) Home receives an offer and the bank accepts = no foreclosure. 2) Property receives no offers or the bank rejects offers = home goes to auction & foreclosure.

Tags: Tags: bank, borrower, boulder, Boulder County, credit report, default, deficiency, employment, foreclosure, home, homeownership, lender, listing, mortgage loan, mortgagor, proceeds, property, realtor, selling, short sale

10 Ways To Better Sex In Boulder Colorado!

Yes I know…what a deceptive way to attract readers to my Boulder real estate blog but how else do you dress up the process of obtaining an FHA/VA loan in a smooth manner?  In Part I of my blog, Uncle Sam Passes Housing Stimulus Bill , I summarized what the new FHA reform laws mean for all of us when purchasing Boulder real estate using a government loan. 

In Part II, I am recommending 10 steps you can take to help ensure your FHA/VA mortgage experience is VERY satisfying.  Now it may not be as satisfying as sex for most you Read the rest of this entry »

Tags: Tags: Boulder property, Boulder real estate, FHA, home, lender, mortgage loan, reform laws, sex, Uncle Sam, VA

Uncle Sam Passes Housing Stimulu$ Bill

The Housing and Economic Recovery Act of 2008 was made official on July 30, 2008.  This housing stimulus bill passed the House and Senate by overwhelming numbers and President Bush was quick to follow suit.  Hopefully these changes will help jump start the slumping housing market but some feel it is too little too late.  Regardless, there are still many home buyers who need affordable homes and FHA financing is one of the most popular means to obtain a mortgage loan.

If you are wondering what an FHA loan is it is a loan insured by the Federal Housing Administration (FHA) and made by an approved lender in accordance with the FHA’s regulations.  FHA requires that the property being purchased meets certain minimum standards.  This mortgage may be easier to qualify for than a conventional mortgage, but it also has a lower maximum loan limit that varies depending on the average cost of housing in a given region.  FHA loans require the borrower to pay mortgage insurance premiums (MIP) if the down payment is less than 20%.  Fixed and adjustable rates are available with FHA loans.

If you are considering an FHA loan, please remember FHA loans do take longer to process than conventional loans and the current average days to close is 35+ days.  Also, FHA inspectors are more finicky when it comes appraisal time and there may be two inspections required for the property.  This may be an important factor if you plan to buy a bank owned property which may have one or more inspection issues which could define if the property is considered habitable.

What does this mean for you if you plan to obtain FHA financing?  Read the rest of this entry »

Tags: Tags: Boulder real estate, down payment, FHA, FHA financing, FHA reform, housing market, mortgage loan, President Bush, real estate