Our Blog | Chantel Ray Real Estate

To buy or sell a home,  call  757-717-1003.

Our Blog

Check out market updates

Short Sale Questionnaire

Short Sale Q&A
1.     Who is a short sale right for?
Those who have had a hardship, and are financially unable to pay for, due to said hardship(s), their current mortgage with a lender who is willing to agree to a short sale rather than go through the expensive process of foreclosure.
2.     What are typical hardships that allow for a short sale to be possible?
Common hardships include family illness/injury, loss of job, job relocation, unforeseen increase in living expenses, proof of insufficient income to pay current mortgage and divorce.
3.     Must there be a delinquent payment on mortgage to be eligible to qualify for a short sale?
It completely depends on the lender, and their policies. Some lenders require for a delinquent payment, where others do not.
4.     Why would a lender accept a short sale, if they know they will lose money in the deal?
Lenders want to work with the borrower to reach a compromise solution, in such they will do extensive calculations to see if it is more financially viable to accept the short sale and have the opportunity to sell the property, netting a smaller loss than with the other option of a foreclosure. The foreclosure process is usually time consuming, and expensive, not to mention, if the property goes to auction, it could bring significantly less than it would through a short sale.
5.     Do all lenders accept a short sale?
It completely depends on who the lender is, and what their level of experience they have in dealing with short sales. The larger the bank, the more likely they are to accept, and the smaller, “local” banks tend to be more hesitant, or may not even accept at all. The scenario may also, have a considerable bearing on the lender’s decision as well.
6.     In the event of a short sale, who is responsible for expenses necessary for resale?
Once a lender has accepted and approved the terms of the short sale, the lender then incurs all of the foreseen expenses involved in the resale of the property, often paying for most of the repairs necessary for resale. The lender has most likely taken these expenses into consideration in their calculations prior to acceptance.
7.     After a short sale, is the person responsible for paying taxes on the cancelled debt?
President Bush passed legislation which is still in effect, specifying if a primary residence goes into short sale, the previous owner is not responsible for paying taxes on the cancelled debt via a 1099 form.
8.     Does a short sale affect one’s credit?
The short sale itself does not directly affect one’s credit, it is a fair better solution than a foreclosure which is catastrophic to credit. The problem that arises with a short sale affecting credit comes in the form of delinquent mortgage payments while the short sale is in progress.
9.     What is an “Arms Length Transaction”?
Mandatory in a short sale, it is an agreement by the previous owner of the property in the short sale that they are at “Arms Length” from the Seller, meaning they are not related to, or friends with the seller in the deal.
10.  Why is a deed in lieu not recommended over a short sale?
A deed in lieu is basically viewed as a foreclosure, and carries significant damage to one’s credit, typically marring credit for 3 years. A short sale is a safer option, and is much easier to repair damages to credit.

Ghosts and Real Estate

The Commonwealth of Virginia is old.  Very old.  Our history textbooks told us of the original English settlement in 1607 at Jamestown but the land existed well before then.  That’s over 400 years of rich history including English colonists, battles with Native Americans, the Revolutionary War, the Civil War and their respective ghosts that continue to haunt Virginia.  That is – if you believe in that stuff. 
If you do – here is a scary fact: The Commonwealth of Virginia does not require any disclosure of ghosts, goblins or demons, along with most other states.  States and local governments do not recognize the existence of ghosts, haunting or spiritual beliefs along those lines. Also, Virginia does not recognize any religion or the belief of a soul and what happens to that soul upon death.  Therefore it is not required for a real estate agent to disclose a death or murder since it does not affect the property.  The only thing that Virginia DOES require is if the death or murder at a property leaves bodily fluid (eww) or a skeleton (eww) on the property is must be disclosed – because now it is a bio hazard or health hazard. Local authorities are required to take over for cleaning and hazard-clearance, but that certainly doesn’t make the process any less scary.
There is a strange fascination with the “other world” and the possible existence of ghosts and hauntings.  There are dozens of shows and movies every year that do their best to convince the non-believers. Take for example the 1973 film, The Exorcist – filmed in a home located in the Georgetown Neighborhood of Washington DC – which sold for over $2 million in 2003.  The actual location of the exorcism which the movie was based has been debated for years – but what if that Georgetown home was the real deal?  Would that stop buyers from making an offer or would buyers actually demand a higher sales price?  What if you bought a house but later found out a murder took place in your home 45 years ago?  What if your neighbor told you that your new residence was haunted by Confederate Civil War soldiers? 
Buying a home is scary enough – searching dozens of homes to find the right one, submitting an offer, surviving the mortgage process, getting through home inspections etc – let alone wondering who lived there and what happened in the house before you.  Here is the most important tip about the purchase process:  Find a real estate agent who is looking out for you and your needs
Lucky for you – you’re on the Chantel Ray Real Estate website – meaning your search for right real estate agent ends here.  We work for you.  Our mission is to glorify God by putting our clients’ interests above our own, providing the highest level of honesty and expertise before during and after each transaction.  Even if our client’s interest is checking for ghosts.   

1 30 31 32