Shuttle from Surprise to Sky Harbor airport
I just found this great offer to take people from Surprise, just outside Sun City Grand and Sun City West, to the airport. They charge $ 49.95 round trip and leave from Surprise, Arizona every hour so you never have to wait. This should really helps those that buy in Sun City Festival or the other active adult communities in area since you can jump on the bus near your home and let them take you to the airport, non-stop!
For more information about this service visit www.shuttle2surprise.com and of course when you have questions about active adult communities www.RetiringToAz.com is the place to go.
Foreclosure VS Short Sale and Your Credit Score
Because we were burglarized last year and our social security cards were stolen, we monitor our credit report closely through a credit monitoring company (FreeCreditReport.com). I found this on their website this morning as I was looking at this months activity and thought it was worth sharing:
It is really interesting what they have to say about the effect of a short sale on your credit score if you wait until foreclosure proceedings have been filed.
How Foreclosure Affects Your Credit Score
By Nina Silberstein
If you’re one of the millions who have lost a home to foreclosure, don´t lose heart. There’s still hope for your credit, and you may even be able to buy another home. First, find out exactly what your credit score is saying about you, and what you can do to minimize the damage.
The bad news
According to Andrew Housser, co-CEO of Bills.com, a free consumer portal of personal finance information, it’s true that foreclosure can have a grim effect on your credit score. “A foreclosure will cause a credit score to drop sharply, typically by 200 to 300 points,” he says. “That would drop a score of 700 – considered a ‘good’ score – to as low as 400 – considered pretty terrible.” The minimum FICO score is 340.Most lenders rely on credit bureau data, although they do not all use FICO scores. Some use their own scoring models, but those tend to have the same inputs, which include payment history, debt, new credit, and others. “Lower credit scores can result in being denied credit, such as credit cards and car loans, and facing much higher rates for loans and even other items, such as insurance, that rely on credit scores,” notes Housser.
The good news
But that’s not the end of the story. Though a foreclosure can remain on your credit report for seven years, it won’t ruin your credit score for life, adds Housser. “If you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as two years. The important thing to keep in mind is that a foreclosure is a single negative item. If you keep it isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.”Alan M. White, assistant professor at Valparaiso University School of Law in Indiana, would agree. “The impact of foreclosure on your score diminishes over time, depending on whether you have other active, on-time accounts,” he explains. “Even FHA [Federal Housing Administration] will allow a new mortgage to be approved if a past foreclosure was more than five years old,” he explains.
Alternatives to foreclosure
Of course, it’s preferable to avoid foreclosure altogether. Here are some ways to accomplish that goal. (Keep in mind, however, that many of these options require you to resume normal mortgage payments at some point. If you can’t afford to resume payments, it may not be worth the effort required to stop or reverse the foreclosure process.)
- Lender negotiation: If there is a reasonable expectation that you will be able to resume making regular mortgage payments within a relatively short time frame, the lender may be willing to work with you to establish a payment plan to bring the loan current. “Especially in today’s market, this is a greater possibility,” says Housser. “Many individuals are having trouble due to an unexpected job loss, medical expenses, divorce or other personal trauma. If the situation has some resolution so that the regular payments may be able to be met again, it is worth it to call the lender.”
- Forbearance agreement: For a temporary hardship, the lender might grant you a forbearance agreement to lower – or eliminate – payments for a limited time.
- Loan modification: This entails a permanent change to the loan, such as lowering the payment and extending the loan’s term or incorporating any delinquencies into future payments. “Lenders are more willing to discuss this now than they were before,” adds Housser.
- Deed-in-lieu of foreclosure: In this case, the lender takes ownership of the home, but that will not eliminate the negative impact of a payment delinquency or foreclosure that has already begun. “Bankruptcy remains on a credit report for 10 years, but it can offer a way to become current in payments, which will improve the credit score,” White notes.
- Refinancing: It may be possible to refinance a mortgage for a lower interest rate and/or monthly payment. But if you have already had late payments on a mortgage, the interest rate offered may be too high to lower your monthly payment. Housser recommends using online rate comparison sites and calculators to determine the “real costs of refinancing.”
- Short sale: In a short sale, the lender accepts less than the mortgage debt when the property value has declined. “A short sale will prevent foreclosure,” says White. “However, if it takes place after foreclosure was initiated, the foreclosure and the related delinquency in payments will be reflected on the credit report.” The only way to protect the credit score fully is to maintain monthly payments until the house is sold.
- Chapter 13 bankruptcy: If the loan default is past the point of being resolved with the lender, you may file for chapter 13 bankruptcy protection. This protection requires you to resume making regular mortgage payments but allows the arrearage (being overdue in payment) to be repaid over the course of the chapter 13 plan.
All things considered, a foreclosure won’t ruin your credit rating forever. It will lower your credit score and remain on your credit report until you’re able to re-establish good credit, however, which takes time and careful planning. Consider your home purchase wisely.
Lynn Otlewski
RE/MAX Integrity, REALTORS
623-238-3875
Don’t learn the hard way about the value of video/photo home inventory
I know that REALTORS(r) have been advising their clients for years to either video or take photos of their belongings to make a record of the things they own. I also know that most of you probably have not done so. I would like to share with you what my brother is going through as I write:
He lives near Atlanta, Georgia and a few days ago they had horrendous thunderstorms. My sister in law was at home with their two boys when they heard a huge clap of thunder and the lights and phone went out.
A few minutes later a neighbor came knocking on their door to let them know that their attic was on fire due to being struck by lightning. Being a major storm, there were 5 other homes in the area that had been struck by lightning and also on fire. Theirs was the last one to get hit and the last one the fire department was able to get to. The home has been deemed a total loss due to fire, smoke and water damage. They will have to strip down to the foundation and rebuild a brand new home. Nothing was salvageable.
So now they have the daunting task of digging through each room and taking photos and an inventory of their belongings that are now soaked, smoked and ruined. Each day they are working on this task brings more and more emotional turmoil - finding video recordings of the kids and other family that are ruined (and of course irreplaceable) bringing up even deeper feelings of loss. The insurance company is requiring them to do this in order to have their things replaced. Their kids have been with them and they just completed their rooms today. The emotions they must be feeling right now must be terrible.
This is probably the hardest way to have to deal with the aftermath of a fire or other great property loss. Imagine not having to go through that after such a loss. This is why I am now passionate about the idea of logging all your belongings via videos or photos. Having this done already would prevent having to go through what my brother and his family is going through right now.
Lynn Otlewski, SRS, CSSN, CDPE
RE/MAX Integrity REALTORS
lynn@valleyreadvisor.com
www.valleyreadvisor.com
623-238-3875
Trilogy at Vistancia in Peoria, Arizona - Incredible Opportunity!
I was just made aware of an amazing opportunity that is available on completed Designer Homes at Trilogy at Vistancia in Peoria, Arizona. Below is a description of designer homes that currently available along with the pricing for each. In addition to aggressive incentives, Shea is offering an additional incentive on the completed designer homes - they are offering 2.125 points to buy down the rate on the loan. On a conventional loan, based on today’s rate, the rate would be 4% on a 30 year fixed - unbelievable!!
In my mind, it is a chance of a lifetime - not only are the designer homes stunning with all the latest technology (solar included, except lot 1890), but you are able to take advantage of today’s low mortgage rates.
If you would like more pictures or details on the options for any of these homes I would be happy to provide this information. Please let me know if you have any questions, I am here to help.
