Atlanta Real Estate Blog-Royan Johnson Century 21 Greater Atlanta

Mortgage Forgiveness

Royan Johnson (Century 21 Intown Realty ) — Wed, 24 Mar 2010 16:11:00 -0700

If you are a debtor and your creditor cancel or forgive that debt, the canceled debt may be taxable. For example You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you. However, in 2007, the Mortgage Debt Relief Act was put in place to help homeowners avoid losing their house and having to pay taxes on the forgiven debt amount. The Act is in effect for mortgage debts canceled from 2007 through 2012. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home's value or the taxpayer's financial condition.

Is Cancellation of Debt income always taxable?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:
Qualified principal residence indebtedness.
Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
Insolvency: If you are insolvent when the debt is canceled, some or all of the canceled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.
Certain farm debts
Non-recourse loans: A non-recourse loan is a loan for which the lender's only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default.

For more on this subject matter visit: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Royan Johnson : atlantahomes@.live.com

First time Home Buyers Credit $8000‏

Royan Johnson (Century 21 Intown Realty ) — Tue, 28 Jul 2009 14:44:04 -0700

Everything you need to know about the $8,000 First-Time Homebuyer Tax Credit

IT EXPIRES SOON!!!

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 prior to December 1^st.

At a glance:

Applies to purchases that CLOSE after 4/8/2008 and before 12/1/2009
Applies only to homes used as a taxpayer's principal residence
Reduces a taxpayer's tax bill or increases his/her refund, dollar for dollar
Is fully refundable, meaning that the credit will be paid out to eligible taxpayer's, even if they own no tax or the credit is more than the tax owed
Certain restrictions and eligibility requirements apply

First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The previous tax credit had a limit of $7,500 and had to be repaid. The new tax credit has a limit of $8,000 and does not... free money!

You do not have to repay the credit, provided the home remains your primary home for 36 months after the purchase date.

Visit: www.atlantafinestrealtor.com for more information.

How to Buy a Foreclosure

Royan Johnson (Century 21 Intown Realty ) — Sat, 21 Feb 2009 20:46:46 -0800

Buying foreclosure real estate in Atlanta or any other area is a unique process. You are best served by working with a seasoned foreclosure agent. Such an agent can be found at Century 21 Intown. These types of agents are experts at helping you get the best price from the financial institution or trustee who owns the foreclosed property, and are familiar with the documentation and requirements that are associated with purchasing a foreclosure. Below I have provided the basic steps in locating, evaluating and bidding on foreclosed homes and properties. Please contact me if you have any questions.

Step 1

Finding foreclosure properties.

Court House Sales:

You can also buy properties on the first Tuesday of each month on the court house steps. These properties are advertised the month prior to the sale in the local news paper. You might get a great deal, but there are many pit falls with these sales that you should be aware of. First, these sales require cash in hand. A person purchasing one of these properties is not granted any inspection period, or even the right to view the home inside, because many times the home is occupied by mortgagee until the sale is consummated (at which point you will need to perform your own eviction). Without a chance to inspect the property you don't know the full condition of what you are buying. You will be bidding against seasoned investors, not to mention the lending institution generally has a reserve price that is not lower than the outstanding debt, arrears and foreclosure costs.

Auctions:

You can often get the jump on the auction by putting your bid in prior to the auction. Contact me for more information on the action process.

FHA and HUD Homes:

I can provide you with a list of these foreclosure properties. I am a certified HUD specialist who can help you with your HUD purchase. Please contact me for more details about buying HUD homes.

Finding foreclosure properties can be as easy as using the search here on this dedicated foreclosure listing website.

Step 2:
Pick up the phone and call me so we can prepare you a list of suitable properties that match your search criteria and then take you out to view the inside of the properties.

Step 3:
I can assist you in finding the right mortgage company that specializes in foreclosed home financing.

Step 4:
when selection is down to the short list I will assist you with a market analysis of each property enabling you see what other similar properties have sold for so that you will be knowledgeable about the value of the final selected property.

Step 5:
After you have selected the right property for you I will commence negotiations and get the property at a price and terms acceptable to you.

Step 6:
After the contract negotiations the Inspection contingency begins, (I can provide you with a list of qualified building inspectors) this is usually a 5 to 10 day period after the contract is accepted. This allows you to have the property inspected to determine its condition while allowing you to withdraw your offer if the property is not in a condition acceptable to you.

Step7:
I will accompany you to closing and walk you through the mountain of paperwork, handling the final touches to ensure a smooth finale to your home buying experience.

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Atlanta Homes For Sale

This site is CENTURY 21 ATLANTA GEORGIA -GA, A full service real estate broker serving Georgia. Counties,Henry County,Rockdale County,Fulton County, Dekalb County,Fayette County, Gwinnett County,Clayton Atlanta, Ellenwood,Decatur, Snellville,Loganville, Lawrenceville,Lilburn,Duluth,Dunwoody,Tucker, Clayston , Lithonia, Stone Mountain, Marietta, Roswell, Alpharetta,Hampton, Lovejoy, Stockbridge, College Park, Riverdale, Jonesboro, Fayetteville, Buckhead,Lithonia, McDonough,Covington,Conyers,Peachtree city,Midtown, Atlanta homes for sale,real estate investment,Atlanta new homes guide,Atlanta real estate resource.

Buying a Bank-Owned REO Property

Royan Johnson (Century 21 Intown Realty ) — Fri, 02 Jan 2009 17:25:27 -0800

For investors and homebuyers looking to purchase a bank-owned property there are a large number of bank-owned foreclosures on the market nationwide so, there has never been a better time to purchase bank own real estate.

There are usually a few stages at which you can buy a foreclosure property. Investors and homebuyers can purchase a foreclosure property in the first phase of default, before a property goes to auction. Secondly, investors can purchase a property at the public foreclosure auction. And finally, a foreclosure property can be purchased from the bank or lending institution if no one bids at the public sale and the bank repossesses the property.

Once a property is repossessed by a bank or lender, the property is usually listed for sale through a real estate agent. Good properties are available, but they require research, preparation, patience and persistence. Buying a bank-owned home in foreclosure isn't easy, and without risk. Before you consider plunging into the foreclosure market, be sure to do your research.

The following is a list of things you can do to successfully purchase a Bank own Property.

1. Inspect Property.

Most Bank Owned Properties are referred to as "distressed" properties and are sold "as is," with disclosure which means that the 15-20 percent discount you saved on the purchase price can easily be eaten up by unexpected (unforeseen) expenses - such as repairs not noted in the exterior inspection. Sometimes owners of homes that go into foreclosure have been struggling financially, which means that the house usually has not received needed repairs or general maintenance on a regular basis. Some homeowners who lose their property to a lender frequently damages to the property. So, be prepared to do renovations and repairs. Hire a licensed contractor to inspector inspected the property and to give you a written estimate of the cost to repairs the property. Budget that number into your purchase price. Repair costs should be used in your negotiation with the bank to reduce the asking price. However, Banks are aware of the needed repairs to the property and set their asking price according.

2. Title Search.

Once a home has been located, search the public records for liens and outstanding taxes. However closing attorney who is handling the closing will do a full title search on yours and the Banking before you can close on the sale of the property. Liens on the property can drive up the purchase price, because they have to be paid off before the property can close. Liens typically placed on a property for unpaid loans borrowed against the property, property taxes or unpaid contractors (mechanics liens). These liens remain intact until they are paid, which means that you may have to pay off the liens on the foreclosed property you are buying - even though you're not the one who didn't pay the property taxes. Banks should clear the title before selling but never assume this is the case - just as you would if you were buying a property from anyone else.

3. Negotiate.

Investors should be prepared to negotiate a lower price than the asking price, lower down payment, a lower interest rate, a reduction in closing costs and ask the Bank to pay all or some of the closing costs. Many mortgage lenders may be willing to waive some closing costs, maybe even offer a break on the interest rate or the down payment. Moreover, some lenders might offer to finance the property at a below-market rate or with a lower-than-usual down payment. Always try to get a better price and favorable terms.

4. The Offer.

Although most banks want to unload their foreclosed properties, they won't necessarily do so cheaply. So you aren't guaranteed a fabulous price. But remember you're dealing with an eager seller. The bank's REO manager or listing agent might suggest that the list price is "firm," but never be afraid to negotiate lower price especially in cases were the property need repairs.

5. Financing.

With good credit, many banks will loan the full amount on a foreclosure or other property. However, if the property is going to me an investment property (rental property) the banks usually require a 10 percent down payment. Investors with a large amount of equity in another property may get a line of credit from their bank to purchase a foreclosure. When they convert the line of credit to a mortgage, a down payment may not be required.

No Obligation Consultation

URL: htt:///www.atlantafinestrealtor.com

WHAT IS A HOME INSPECTION ?

Royan Johnson (Century 21 Intown Realty ) — Mon, 29 Dec 2008 19:36:08 -0800

WHAT IS A "HOME INSPECTION"?

A home inspection is an objective visual examination of the physical structure and systems of a home, from the roof to the foundation. Having a home inspected is like giving it a physical checkup. If problems or symptoms are found, the inspector may recommend further evaluation.

WHAT DOES IT INCLUDE?

The standard home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

WHY DO I NEED A HOME INSPECTION?

The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. Of course, a home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase. If you are already a homeowner, a home inspection may be used to identify problems in the making and to learn preventive measures which might avoid costly future repairs. If you are planning to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition.

WHAT WILL IT COST?

The inspection fee for a typical one-family house varies geographically, as does the cost of housing. Similarly, within a given area, the inspection fee may vary depending upon the size of the house, particular features of the house, its age, and possible additional services, such as septic, well, or radon testing. It is a good idea to check local prices on your own. However, do not let cost be a factor in deciding whether or not to have a home inspection, or in the selection of your home inspector. The knowledge gained from an inspection is well worth the cost, and the lowest-priced inspector is not necessarily a bargain. The inspector's qualifications, including his experience, training, and professional affiliations, should be the most important consideration

CAN'T I DO IT MYSELF?

Even the most experienced homeowner lacks the knowledge and expertise of a professional home inspector who has inspected hundreds, perhaps thousands, of homes in his or her career. An inspector is familiar with the many elements of home construction, their proper installation, and maintenance. He or she understands how the home's systems and components are intended to function together, as well as how and why they fail. Above all, most buyers find it very difficult to remain completely objective and unemotional about the house they really want, and this may affect their judgment. For the most accurate information, it is best to obtain an impartial third-party opinion by an expert in the field of home inspection.

CAN A HOUSE FAIL INSPECTION?

No. A professional home inspection is an examination of the current condition of your prospective home. It is not an appraisal, which determines market value, or a municipal inspection, which verifies local code compliance. A home inspector, therefore, will not pass or fail a house, but rather describe its physical condition and indicate what may need repair or replacement.

WHEN DO I CALL IN THE HOME INSPECTOR?

A home inspector is typically contacted right after the contract or purchase agreement has been signed, and is often available within a few days. However, before you sign, be sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection. This clause should specify the terms to which both the buyer and seller are obligated.

DO I HAVE TO BE THERE?

It is not necessary for you to be present for the inspection, but it is recommended. You will be able to observe the inspector and ask questions directly, as you learn about the condition of the home, how its systems work, and how to maintain it. You will also find the written report easier to understand if you've seen the property firsthand through the inspector's eyes.

WHAT IF THE REPORT REVEALS PROBLEMS?

No house is perfect. If the inspector identifies problems, it doesn't necessarily mean you shouldn't buy the house, only that you will know in advance what to expect. A seller may adjust the purchase price or contract terms if major problems are found. If your budget is tight, or if you don't wish to become involved in future repair work, this information will be extremely important to you.

IF THE HOUSE PROVES TO BE IN GOOD CONDITION, DID I REALLY NEED AN INSPECTION?

Definitely. Now you can complete your home purchase with your eyes open as to the condition of the property and all its equipment and systems. You will also have learned many things about your new home from the inspector's written report, and will want to keep that information for future reference.

Agent Referral for Atlanta Georgia

Royan Johnson (Century 21 Intown Realty ) — Mon, 17 Nov 2008 20:08:36 -0800

Hello My Century 21 Group Members,

Do you have a client or acquaintance moving to Atlanta, Georgia?

Send them in my direction! I promised to provide them with top quality, experienced assistance in finding them just the right home. I am friendly and professional. Your clients will be pleased with my service and knowledge.

Normally I pay a 25% referral fee, but if you mention this Note I will bump that up to 30 %. On a $300,000 + home that would mean about $ 700 more to you (about $ 2970 all total!)

You can email me if you want: royan@c21intown.com. Better yet call me today at:

770-262-7533

I look forward to talking with you! Royan L Johnson

http://www.atlantafinestrealtor.com

R.E. Agents Referrals

Royan Johnson (Century 21 Intown Realty ) — Wed, 22 Oct 2008 19:59:59 -0700

Real Estate Agents, do you have a client or acquaintance moving to Atlanta, Georgia?

Send them in my direction! I promise to provide them with top quality, experienced assistance in finding them just the right home. I am friendly and professional. Your clients will be pleased with my service and knowledge.

Normally I pay a 25% referral fee, but if you mention this web page I will bump that up to 33%. On a $300,000 home that would mean about $700 more to you (about $2970 all told!).

You can email me if you want: royan@c21intown.com. Better yet call me today at :

(770)262-7533

I look forward to talking with you! Royan L. Johnson

Agents Referrals

Royan Johnson (Century 21 Intown Realty ) — Sun, 28 Sep 2008 13:52:24 -0700

Hello My Century 21 Group Members,

Do you have a client or acquaintance moving to Atlanta, Georgia?

Normally I pay a 25% referral fee, but if you mention this Note I will bump that up to 30 %. On a $300,000 + home that would mean about $ 700 more to you (about $ 2970 all total!)

You can email me if you want: royan@c21intown.com. Better yet call me today at:

770-262-7533

I look forward to talking with you! Royan L Johnson

http://www.atlantafinestrealtor.com

The Path to Homeownership

Royan Johnson (Century 21 Intown Realty ) — Fri, 26 Sep 2008 11:41:58 -0700

When asked what their top ten greatest achievements are, many people say owning their own home is number one. Homeownership represents the American dream to many. It signifies a leave of success, a level of financial security, and independence.

For those starting out, however, the path to homeownership can seem like a long journey. The Sale price of their desired home combined with interest rates, taxes, and homeowner's insurance can make it seem like a dream that may never be achieved. The key to making home ownership a reality is to deal with the numbers at hand.

Start with analyze your finances. This will help you determine how much home you can afford or how much you need to save for the home. Examine your income and all your monthly expenses. Check out your credit score and make initial inquiries into obtaining a mortgage. However: be careful too many repeated requests for your credit score and duplicate loan requests can negatively impact your appeal to creditors overtime, so try non to have too many inquiries.

Next, find out if there are or any state or federal government aid programs that could help you achieve your goal. Many states have first time home-buyer programs that can help you understand the home buying process and develop a game plan for managing your finances. Finally, put a plan into action. Start improving your credit by consolidating some of your debts and making consistent payments credit cards and other debts. Control your spending habits so that you will have more money saved for a down payment and expenses such as closing costs, taxes, and moving. Do your research on what mortgage programs are available at the same time. Educate yourself about mortgage rates and all the different terms. Always remember, that shopping for a loan is a lot like shopping for a new car. The more you know about the products and the different competitors, the better able you are to negotiate a favorable deal for yourself.

URL: http://www.atlantafinestrealtor.com/

Find My Ideal Home

Do you have a dream home in mind and just need some assistance in locating it? Maybe you are from out of the area, or have little time to devote to search, or are not sure where to begin. Just Fill Out The Request Form and I will E-mail you a list of homes that fits your criteria and price range.

Welcome home.

10 Questions You Should Ask Your Lender.

Royan Johnson (Century 21 Intown Realty ) — Thu, 18 Sep 2008 18:52:56 -0700

Before you sign on the dotted line

What Types Of Mortgages Does Your Lender Offer?

Most mortgage company offer a wide array of loan options to fit various situations. Tow most common loan types are fixed-rate and adjustable-rate mortgages (ARMs).

A fixed-rate mortgages interest rate and principal payment remain constant for the live of the loan. Since the interest never changes during the life of the loan, the borrower can always budget for the mortgage payment. (Keep in mind that Insurance and Taxes are adjustable annually if the borrower is escrow they may see slight adjustment in their mortgage payments due to these annual adjustment). A fixed- rate mortgage is the best option especially if the borrower is planning to stay in the home for a while (5 years or more).

With the ARMs, the interest rate and your payments are adjusted up on down periodically as the market index changes. The rate usually is adjusted between three months and five years. ARMs are usually protected by caps that limit how much the interest rate adjusted up the first time, and each successive time or overall. This option is good in you are getting a mortgage at a time when rate is high or if you are planning to sell before the first adjustment period.

1. What Is the Interest and Annual Percentage Rate (APR)?

The interest rate used to calculate your total cost over the live of the loan and the amount of your monthly payment. (The higher your interest rate the more your monthly payment will be). The APR is derived by calculation that includes the interest rate and all the other related lender fees divided by the loan term.

3. What Are the Discount Points and Origination fees?

Each point equals 1% of the loan amount. Therefore 1 point on a $200,000 loan cost $ 2,000. Points are a way to buy down the interest rate. The more points you pay the lower your interest rate. Landers may have some restrictions on points buy down. Points are tax deductible, no matter who pays for them. The longer you plan to stay in the home the more it worth it to pay for discount points.

4. What Are The Closing Costs?

Closing costs are fees included in your loan, usually include charges for credit reports deed search and more.Your lender is required by law to provide a good faith estimate of your loan's closing costs within three days of receiving your application. Your mortgage consultant should explain the purpose of all the fees Your Real Estate Professional should try to have the seller pay some of these closing costs on your behalf.

5. What Are Rate Locks and When Can You Take Advantage Of Them?

Interest rates fluctuate daily. Think about licking in the interest rate if interest rates are rising. Licking in interest rate is usually good for 30 to 45 days while you search for the right home. Lock in the interest rate on application not an approval. So if the rate goes up between the time you applied and the time you are approve you will not have to pay the higher rate.

6. What Is The Minimum Required Down Payment?

The down payment determines the loan's rate and term. The minimum down payment is the lowest amount of money you can putdown on your home; this is expresses as a percentage of the property's value. Required down payment usually range from 3%-20%. A 3% down payment requires 97% financing, with a 5% down payment 95% will be financed. The larger the down the lower the principal and monthly payments. Larger down payment usually enables you to obtain a lower interest rate. Down payment less that 20% requires you to have mortgage insurance (PMI).

7. Is There A Prepayment Penalty?

Sometimes if you pay off your mortgage early you could be charge a prepayment penalty. The penalties usually are as much as 3% of the loan balance or the equivalent of six month's interest. Often, prepayment penalties decline or disappear over time. Some time you maybe able to secure a better interest rate if you agree to a prepayment loan. You may want to think twice before you agree to a loan with a prepayment penalty. Most borrowers do not stay in the home for the life of the loan. They usually refinance or sell the home.

8. How Long Will It Take To Close My Loan?

Closing time may vary from about 2-6 weeks, depending on how long it takes to assess your documentation and check your credit. Try to submit your application far enough in advance to ensure funding for your loan. Talk to your real estate agent about allow the maximum time (6 weeks) for closing when you find the home you want to purchase. This will give your loan processer more time to work on your loan. If the loan processer is done before the maximum time, ask your agent to request a change of closing date so you can close earlier.

9. What Might Delay My Loan Application?

Avoid potential delays by making sure your application is complete, correct and legible. Provide all the supporting documentation needed so; your loan processer will have all the necessary information to proceed with the processing of your loan.

10. What Are The Documentation Do I Need?

Some of the documentation that you need are name and contact information of your current employer, proof of income, social security number, bank statements, and any assets you have. You loan officer should provide you with a check list of all the documentation you will need for the loan to be processed.

Royan Johnson is a Licensed Sales Associate with CENTURY 21 Platinum Realty in Atlanta & Metro Atlanta Representing Home Buyers, Sellers and Investors. Contact Royan

How to Buy HUD Homes

Royan Johnson (Century 21 Intown Realty ) — Sat, 13 Sep 2008 16:40:31 -0700

HUD sells properties at reduced prices that you might want to buy!

What is a "HUD Home"?
When someone with a HUD insured mortgage can't meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home। Then sell it at market value as quickly as possible

Frequently Asked Questions About HUD Homes

Who can buy a HUD home?
Answer: Anyone! If you have the cash or can qualify for a mortgage, you can purchase a HUD home.

Are HUD Homes meant for people with low incomes?
Answer: HUD homes range in price, but most are affordable for low-and moderate-income Americans.

Is it true I can get a HUD Home for a dollar?
Answer: No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.

If the HUD Home needs repairs, will HUD make them?
Answer: HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up - and not all of them do - it can be a real bargain! For example, HUD's asking price on the home will reflect the fact that the buyer will have to invest money to make improvements. HUD might offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. And keep in mind that on most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs. Your real estate agent will have details. HUD encourage you to get the home professionally inspected before you make an offer so you will know what repairs you may have to make BEFORE you submit your bid.

How do I buy a HUD home?
Answer: Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an "Offer Period." At the end of the Offer Period, all offers are opened and, basically, the highest bid is accepted. If the home isn't sold in the initial Offer Period, you can submit a bid any business day. If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours.

If my bid is accepted, then what happens?
Answer: Your real estate agent will help you through the paperwork process. You'll be given a settlement date, normally within 30-60 days, where the transaction will occur. HUD has an excellent booklet to help you understand the settlement process: "Buying Your Home - Settlement Costs and Helpful Information." Or contact royan@c21intown.com to have a copy e-mailed to you.
When you buy a HUD Home, the selling agent's commissions are usually paid by HUD. HUD will pay a total sales commission of up to 6%.

How can I find out what HUD Homes are for sale?
Answer: Visit HUD Homes for sale or email http://www.atlantafinestrealtor.com/ every day। If you see one that interests you, contact one of the real estate agents in your area who show HUD homes. They can help you from there.

How can I get a loan to buy a HUD Home?
Answer: HUD doesn't make loans directly. HUD have a number of mortgage insurance programs that could help you buy a home. You can read about those programs here. Then contact a HUD approved lender, who will take you through the steps and actually make the loan.

Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

Is there anything else I should know about HUD Homes?
Answer: Every homebuyer and homeowner is encouraged to be a wise consumer, so be sure to read Consumer Information. Houses built before 1977 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.

Attention: Nonprofits and Government Agencies! HUD has a special sales program under which approved nonprofit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs। Contact the local HUD office Or royan@c21intown.com for details.

URL http://www.atlantafinestrealtor.com/

The time to Buy is Now

Royan Johnson (Century 21 Intown Realty ) — Fri, 12 Sep 2008 14:22:41 -0700

What's going on in the Real Estate Market today makes it a great time to buy. What we have now is definitely a buyer's market. With so many new and resale homes on the market and with interest rates still at historical lows, this is a great and opportune time for buyers to purchase the home of their dreams at an affordable purchase price.

For those who have been saving to purchase a first home and have a good credit score and not too much debt, this is the perfect time for them to buy their first home. Not only will they have a variety of homes to choose from, some that may not have been affordable if the market had been different, but they will also be able to obtain an affordable loan payment at a low fixed-rate interest rate.

The caveat however, is to be cautious and not to buy beyond there means. They should consider all the costs of home ownership, such as upkeep, and taxes and insurance, before making the decision to buy.

This is also a great time for renters with a stable income to consider purchasing a home. With so many homes on the market, many due to foreclosures, you they may be able to find an affordable home that requires very little down. They could even look into purchasing a smaller home, holding it until the market turns up, then selling it and move up into a larger home if they wish.

Newly retired couples, who have their mortgage paid off, may find this is a grate time to purchase a vacation home. With the good interest rates and the lower home prices, they could find some good deal that they otherwise may not have been able to afford.

For those who have money and are looking to invest in real estate this a good time to purchase investment property. Remember that it is very important that you can afford to hold on to the property for a while until they market turns up. Hold on to your rental property for a few years. When you're ready to sell it, you'll find you've made a great investment.

Agents Referrals

Royan Johnson (Century 21 Intown Realty ) — Wed, 10 Sep 2008 18:51:11 -0700

Hello My Century 21 Group Members,

Do you have a client or acquaintance moving to Atlanta, Georgia?

Normally I pay a 25% referral fee, but if you mention this Note I will bump that up to 30 %. On a $300,000 + home that would mean about $ 700 more to you (about $ 2970 all total!)

You can email me if you want: royan@c21intown.com. Better yet call me today at:

770-262-7533

I look forward to talking with you! Royan L Johnson

http://www.atlantafinestrealtor.com

Home Improvement Tips

Royan Johnson (Century 21 Intown Realty ) — Mon, 08 Sep 2008 15:56:25 -0700

Making home improvements not only creates beautiful upgrades to your home but can also increase its overall value. Using a Home Equity Line of Credit can be the smartest way to manage the expense associated with making home improvements. The following tips from industry experts offer some of the most cost-effective and valuable enhancements you can make to your home.

Tip #1
Updated homes frequently sell faster. The renovation of dark or dated kitchens is one of the most profitable home improvements you can make.

Tip #2
Time to refinance your mortgage? If interest rates are lower now than when you closed on your current mortgage, you may be able to save money by refinancing.

Tip #3
Updating an old bathroom is one of the most profitable home improvements you can make.

Tip #4
Adding casual living areas like a den or family room is a smart home improvement.

Tip #5
Thinking of updating your home with one of these home improvements and wondering how long they generally last?

• new chimney: 100 years or more

• Asphalt shingles: 15 to 30 years

• A wooden deck: 15 years

• Ceramic tile or terrazzo: 100 years or more

• Vinyl flooring: 20 to 30 years

• Oak or pine floors: 100 years

Tip #6
Planning to buy new appliances? Here's how long they generally last.

•§ Refrigerators: up to 20 years

•§ Microwave: 10 years or more

•§ Stove: 15 years or more

•§ Washer and dryer: about 13 years

Tip #7
Adding a second bath to a house can be a significantly profitable home improvement.

Tip #8
it's true: sometimes you have to spend money to save money. Buying a new refrigerator can save you money on electricity. Insulating an attic can save on heating and air-conditioning bills. The improvements you make not only save you money now but may also increase the value of your home.

Agents Referrals

Royan Johnson (Century 21 Intown Realty ) — Thu, 04 Sep 2008 17:57:48 -0700

Hello My Century 21 Group Members,

Do you have a client or acquaintance moving to Atlanta, Georgia?

Normally I pay a 25% referral fee, but if you mention this Note I will bump that up to 30 %. On a $300,000 + home that would mean about $ 700 more to you (about $ 2970 all total!)

You can email me if you want: royan@c21intown.com. Better yet call me today at:

770-262-7533

I look forward to talking with you! Royan L Johnson

http://www.atlantafinestrealtor.com

What Is Your Debt To Income Ratio?

Royan Johnson (Century 21 Intown Realty ) — Thu, 04 Sep 2008 14:30:12 -0700

How is your financial health? Are you spending less than you make? At first glance, your answer may be "yes," but in reality, many Americans are spending more than they're making, and in doing so, digging themselves further and further into debt.

Your debt to income ratio is the true measure of your financial health. Debt to income ratio is calculated by dividing monthly minimum debt payments (house payments, car payments, credit card debt, personal loans, and similar related expenses) by monthly gross income (income before taxes).

For example, someone with a gross monthly income of $5000 who is making minimum payments of $1485 on debt (loans and credit cards) has a debt to income ratio of .30 percent ($1485 / $5000 = .30).

Your debt to income ratio gives lenders an idea of who they are lending money too and whether or not you will pay your bills on time or at all for that matter. Figuring out your debt to income ratio will show you how much of your income will be available for your monthly mortgage payments.

What is the ideal debt to income ratio? Many financial experts say that the total amount you pay toward your mortgage should not be more than 28% of your gross income. At the same time, your debt payments should not be more than 36 % of your income.

Fill in the blanks below to figure out your debt to income ratio; then review the chart below to see where you stand.

Step 1: Monthly Debt
Mortgage Payment	__________
Monthly home equity loan	__________
Car payment	__________
Credit card minimum payment(s)	__________
Student loans	__________
Personal loans	__________
Child support	__________

Total Monthly Debt	__________

Step 2: Gross Monthly Income
Gross monthly take home pay (before taxes)	__________
Bonus/overtime divided by 12	__________
Other income divided by 12	__________


Gross Monthly Income

Step 3: Total Monthly Debt/Gross Monthly Income	= %_______ debt to income ratio

Resules

30% or less: You have excellent credit.

30% to 36%: Pretty good. Most people fall within this area. This shows that you are in control of your spending and that you are worthy of credit. You won't have any problem with lenders.

36% to 42%: Borderline. Even though your debts may be controllable, it would be a good idea to start paying them down before they become a problem. You should not have any problems getting a credit card at this ratio, however loans may be more difficult to come by.

42% to 49%: Proceed with caution. You are headed for troubled waters. Take control of your debt as soon as possible.

50% or higher: Trouble. This would mean that your credit situation is in need of professional help. Speak with a professional and work to reduce your debt.

Being aware of your debt to income ratio will help you make responsible decisions regarding your spending habits. If you allow your debt to get out of control, it will affect your chances of getting credit for large future purchases such as a home or a car. If you keep your debt to income ratio low, you will have a better chance of securing a lower interest rate and better terms when applying for credit. As you can see, keeping track of how much you spend versus how much you bring in is important. It is also a good rule of thumb not to spend what you don't have.

The Georgia Dream Homeownership Program makes purchasing a home more affordable by offering fixed, low-interest rate mortgages loans. Find out if you are eligible e-mail royan@c21intown.com

http://www.atlantafinestrealtor.com

© 2003 Century 21 Real Estate Corporation. CENTURY 21® is a registered trademark licensed to Century 21 Real Estate Corporation. Equal Housing Opportunity. An Equal Opportunity Company. Each Office is Independently Owned and Operated.

Atlanta Georgia Relocation Services-Real Estate

Royan Johnson (Century 21 Intown Realty ) — Wed, 27 Aug 2008 19:35:30 -0700

Atlanta Georgia Relocation Services

You're moving! Or maybe you're still in the "thinking about it" stage. Perhaps your employer has offered you a transfer. Wherever you are at this point in time, I have all the resource at Century 21 Platinum REALTY available to make your transition easier

Just say the word, and I will send you a complimentary personalized information packet that will provide facts on the entire Atlanta and Metro Atlanta area-school and tax information, housing costs, maps, local recreation opportunities, worship centers, civic groups and local attractions. And serve as your "one point of contact.

Once you schedule a visit, I will make appointments for you to tour individual homes; show you the neighborhoods, the schools, the shopping areas-those things that matter to you most. My goal is to be a resource for you, to answer your questions, and provide the information you need to make an informed decision. As a locator to Georgia I understand the dynamics of relocating.

As a real estate professional, I have serves as a vital resource to both local businesses and those considering a move to Atlanta and metro Atlanta. I relocated from Boston Massachusetts in Business Administration, Customer services, and Finance. I will put these experiences and expertise's to work for you.

See you in Atlanta Georgia!!!

Contact me for more Info

website: www.atlantafinestrealtor.com

August 2008 - MONTHLY REAL ESTATE REPORT

Royan Johnson (Century 21 Intown Realty ) — Sat, 23 Aug 2008 18:33:16 -0700

"BANKS EXPECT TIGHTER CREDIT FOR LOAN PURCHASES"

According to a survey on bank lending practices, banks in the United States will continue to tighter credit conditions for mortgage loans. As a result, banks have raised standards for business loans as well. The Federal Reserve survey reported that 80% of banks have tightened lending standards for commercial real estate. These Banks also, widened commercial loan rate spreads over fund costs. Mortgage loan applicants with favorable credit scores are (limited) finding it hard to get Mortgage. Banks now have a reduced tolerance for risk due to the uncertain economic outlook and worsening of industry problems.

"PRE-FORECLOSURE SALE" (SHORT SALE)

A Pre-foreclosure Sale allows a borrower who is about to go into default to sell their property, and use the sale proceeds to payoff the mortgage loan (in full), even if the proceeds are less than the amount owed. This option prevents foreclosure and prevents the Lender from incurring those fees involved in foreclosure (legal, selling the property, etc). A real estate professional is able to arrange "short sales" and do this service as part of their business. It is very important to contact your lender and get approval before attempting a Pre-Foreclosure Sale (Short Sale), and will not be accepted without prior approval of the Lender. Borrower qualifications for a Short Sale/Pre-Foreclosure Sale are:

1. Borrower must be 31 or more day's delinquent;
2. Default must be due to a verifiable increase in living expenses or decrease in income;
3. Property cannot be abandoned;
4. Property must be occupied as the primary residence (lender may make exceptions);
5. Borrower cannot have the resources needed to get current and must fill out a Financial Statement for the lender. Foreclosure must be inevitable.

"FACING FORECLOSURE"

Determining whether your property is about to go into foreclosure is difficult for most borrowers who are late on their mortgage. The stage of delinquency will determine which department you need to contact for assistance. Therefore, between 15 and 60 days delinquent, contact the Delinquency Resolution Department; 60 - 90 days call the Foreclosure Preparations Department; 90 or more days, call the Foreclosure Prevention Department. Most of all, call your lender, IMMEDIATELY!

"FORBEARANCE AGREEMENTS"

Informal Forbearance: An informal forbearance agreement is a verbal repayment plan frequently used when the past due amount owed has not exceeded three months. Many lenders will require you to make a payment and 1/4 or a payment and 1/2 until your loan is current.

Formal Forbearance: A formal forbearance agreement is similar to the above but is a written plan developed by the lending company which requires you to make a payment and a partial payment to make up the delinquent amount owed. The plan cannot exceed 18 months.

Special Forbearance: A special forbearance agreement is a written plan that reinstates a loan which has been delinquent for at least 62 days or more. The total amount delinquent may not exceed 12 months including principle, interest, taxes and insurance (PITT). Late fees will not be incurred as long as you abide by the terms of the agreement.

"LOAN MODIFICATION FROM ARM TO FIX"

Loan modification is one way to keep your home out of foreclosure. Loan modification is a permanent change in one or more of the terms of a borrower's loan. It allows a loan to be reinstated and results in a payment that the borrower can afford. A lender may consider reinstating if the loan meets the following criteria:

1. Loan is 2 to 3 months delinquent;
2. A minimum of 12 months has elapsed since the loan closing;
3. Loan is not in foreclosure;
4. Owner is committed to occupying the property as their primary residence;
5. Borrower has sufficient income to handle the modified mortgage;
6. Borrower has experienced a verifiable increase in living expenses or loss of income;
7. Borrower does not have another mortgage.

Loan modification options may include 1) interest rate adjustment, 2) adding delinquent amount owed into the loan balance, 3) changing the mortgage payment, 4) or extending the loan repayment term.

http://www.atlantafinestrealtor.com

article posted on http://www.itsallaboutrealestate.com

A Few Things About Money

Royan Johnson (Century 21 Intown Realty ) — Wed, 06 Aug 2008 14:42:49 -0700

The share interplay of interest if it bears it is the green in your checking accounts, the change in your pockets and the dollar in your wallet are defined as fiat. As well as, your mutual funds, 401k, IRA, gold bullion, stamps both gold and paper, plant, equipment and real estate, patents and various other financial holdings, paintings and even certain ideas might be so defined. Money ranges from its most liquid form to the illiquid. As are some unpublished books, manuscripst and music. At present many people's money are captive to an illiquid real estate market. Mostly, money is anything that can be converted to cash at some point in time, hopefully before its value changes in a disadvantageous way.

Then too what is always coming around the bend is change and at some point in time, in the United States and most countries around the world gold as a standard of economic value or money was changed. Since we no longer use the gold standard as a means to value our dollar the questions beckons what is relied upon? Answer: Fiat Money. Which is money backed by government demand for it as legal tender in payment of legal liabilities such as taxes and social security benefits. Since the government has an unending income stream in taxes and can create as much money as it deems fit, fiat money is said to be backed by the full faith of the government.

It is argued then that the excess of fiat money creates inflation. Which in a market economy the actors thereof will attempt to predict the government officials action in order to advance the value of their assets. During times of inflation then those said actors will seek to tranfer their fiat money to other forms of money that will not be discounted as fiat during inflationary periods. This in and of itself creates an opportunity for the financially vigilant and the nimble who can see the change in course and manuver to take advantage before it happens.
THE BUSINESS CYCLE
The business cycle is affected by the creation of liquidity and the reduction of liability which when applied starts a chain reaction of increasing money supply which leads to both consumers and business' borrowing more money to acquire and or facilitate growth. The borrowing leads to profits for corporations and the subsequently higher taxes for uncle sam. Business' expand and hire more employee's who now are required to pay taxes on the salaries earned and consumers spend more this creates economic activity which boost Gross Domestic Product or GDP. Which measures economic activity. It is the federal government that initiates this cycle both to wall street and the local man on the street but they do it for primarily self serving reasons. As described above a lot of the benefits is returned to the government in taxes and the confidence of the voting public.
How then might one profit from any of this? For one in the preparation for the federal governments action or the lowering of interest rates many stock market participants will remove from the market hoards of its capital this causes a devaluation of stock prices as measured by the S&P 500. Thereby creating a buying opportunity for those prepared to do so. One can use the high S&P index number prior to the action then measure for a 5% to 20% retracement which when this occurs before the federal goverment lowers interest rates,savy investors with start dollar cost averaging back into the market. One can remove from the market some portion of ones investment only to replace it on the the day the fed start the very first cut in interest rates since the last time it had embarked on increasing said interest rates. This same occurrence took place on Sept 18 2007 when the S&P Gained over 3.3% in just two days this confirms a new bull run. Which with more stoking and proding from the fed, in the continued lowering of interest rates. This starts a new cycle where we can all be berry merry and have a great Christmas.
It might be meaningful to be aware that during the trading year there are about 3 to 7 days that one does not want to be out of the market Semptember 18, or slightly before say one or two weeks before would have been ideal. They say you can't predict the market and perhaps there is some level of truth to that. however, it was sure noticeable that the FOMC or Federal Open Market Committee had scheduled their meeting months in advance where anyone could have been informed.
WHAT TO LOOK FOR AND WHY THE FOMC LOWERED INTEREST RATES
One more piece of information to consider. What made the FOMC lower interest rates on this date? Answer: the need to fulfill a dual mandate that is clear to all who know it and that is to maintain full employment and price stability the very same prices that affect you and I each and every day. When some of the goods, such as real estate, consumed by all of us reaches high prices where others are unwilling to buy them there tends to be a retracement of prices. This has occured in the Housing Markets which comprises almost 24% of economic activity if one include financials and Insurance. Since the first quarter of this year GDP grew at a paltry .06% the gatekeepers at the FOMC needed to reinsure us that they are doing their jobs. Since a potential 24% of GDP growth was known to be in jeopardy it would be unthinkable not to act. Additionally the Economy is like 200 Titanics they don't turn on a dime, it takes time to stop whatever direction they are going in and turn them around. So the FOMC had to act now so that there would be adequate time to see a turning around of the economy. The economy is, as stated by the former FOMC's chairman, likely to head into ression by a 33% likely hood. Due to the slow nature of turning the Titanic I believe this number is 45% therefore in the next six to nine months will lend themselves to a deffogging of the seas she sails. The reported GDP number will be clear to see.
HOW DO WE MAKE MONEY
We retain our vigilance and be mindful of economic forces and activities learn what types of assets rise when and why seek to be owners of the right assets at the right time otherwise you will continue to suffer the setback of corrections. Such as those being experience by non-vigilant real estate investors and subprime booboo heads who knew or should have known what the money was going into. We see that the fed has acted in changing its interest rate policy by being more accomodative and this leads investors to speculate that the future will be brighter. You should follow their lead. A wise man once said, we do not need to know why they do what they do but we certainly can too. Even though we, duh! do.

http://www.atlantafinestrealtor.com

WHAT TO EXPECT AT CLOSING

Royan Johnson (Century 21 Intown Realty ) — Wed, 06 Aug 2008 13:38:59 -0700

In an instance where the real estate transaction is a cash deal (cash closing)। The transaction can be consummated by executing a handful of documents such as a Settlement Statement, Seller's and Purchaser's Affidavits, and Transfer Tax Form। However: a transaction which the buyer takes out a mortgage can require execution of many more documents. These documents will be prepared by the closing attorney's office and Lender. The documents furnished by the Lender will include Federal, State, and a host of others ranging forms including various affidavits to taxes. The following is a list of typical documents found in a loan package at the closing. Keep in mind that that this list is not conclusive. Each loan is unique. So, documents may vary somewhat according to the type of loan a buyer is getting. Pertain to buyer(s)

HUD-1 Settlement Statement:Developed by the U.S. Department of Housing and Urban Development, this document itemizes the services provided, fees, and charges associated with closing the loan. A buyer should request a copy the HUD-1 Settlement statement at lest 24 hours prior to closing. The copy of the HUD1 a buyer received prior to closing is will called a good faith estimate and may chanced slightly at closing

GRMA Disclosure
Required by the State of Georgia as a disclosure to the Borrower(s) that failure to comply with terms and conditions of the loan could result in foreclosure against the subject property

Representation Disclosure
Informs the Borrower(s) that the Closing Attorney's Office represents the Lender/Investor and not the Purchaser(s) or Seller(s)

Corrections/Errors and Omissions/Compliance Agreement
Agreement by Borrower's to cooperate with Lender and Settlement Agent in correcting typographical or clerical errors in any mortgage documents.

Truth-In-Lending Disclosure
Discloses the "annual percentage rate" (APR) reflecting the cost of the mortgage loan as a yearly rate. This rate will probably be higher than the rate stated on the Note because the APR includes, in addition to interest, loan discount points, fees, and other credit costs. Additional information is also provided, such as finance charges, schedule of payments, late payment penalties, and whether or not there is any penalty for early payoff of the loan.

Escrow Account Statement
Federal law required disclosure on every residential mortgage loan with escrow accounts for payment of future taxes and insurance reflects anticipated receipt and disbursement of escrow funds over the next (12) twelve months from the loan origination date.

Borrower's Certification and Authorization
Borrower's certification that all information he/she provided to the Lender in association with the mortgage loan was true and correct and authorizing Lender to re-verify credit information.

Promissory Note
An instrument the Borrower(s) sign which contains an unconditional promise to pay, on demand or at a fixed or determined future time, a particular sum of money to the Lender, a specified person, or the bearer of the Promissory Note. This document will outline the basic terms of the loan including names of Borrower and Lender, Interest Rate, Loan Amount, and period of repayment.

First Payment/Coupon Letter
Lenders must provide a temporary coupon for the Borrower(s) to make their initial mortgage payment in case the coupon payment booklet is not received in time for such payment.

Waiver of Borrower's Right
Acknowledges the Borrower's signed with the understanding that failure to meet the terms and conditions of the mortgage loan could result in foreclosure upon the collateral property and that this procedure is non-judicial in Georgia. (Check to see if your state is non-judicial or not.)

Security Deed
Usually signed the same time the Promissory Note is created. The Security Deed gives the Lender a "security interest" in property or real estate, providing the Lender the opportunity to seize the property in the event of default by the Borrower.

Riders
Attached to the Security Deed and in certain circumstances: For example: A Planned Unit Development Rider where the subject property is located in an area with covenants providing for mandatory assessments (e.g. Homeowner Association fees) or an Adjustable Rate Rider for Adjustable Rate mortgage loans.

Survey/Termite Waivers or Hold Harmless Forms
These are included based on the requirements of the given transaction. In some instances, mostly Refinances and Second Mortgages, Surveys and Termite Inspections are not required and thereby "waived." In cases where Surveys and Termite Inspections are required, the closing package will include a "hold harmless" agreement which serves as notice to the Borrower(s) that such services were provided by an independent contractor.

IRS Form W-9
Used by the Lenders as verification of Borrower's Social Security Number and for reporting interest deduction by the Lender to the IRS.

IRS Forms 4506/8821
Forms Authorizes the Lender to request a copy of Borrower(s) income tax return directly from the IRS.

Occupancy/Employment Affidavits
Certify that the Borrower(s) intend to occupy the subject property as a principal residence and that his/her employment status has not changed since loan application.

Flood Insurance
The Flood Protection Act of 1973 (Public Law 93-234) requires the purchase of flood insurance in certain flood prone areas as designated by the Department of Housing and Urban Development. Therefore, Borrower(s) must purchase such insurance if the property is located in an area where flood insurance is required.

Notice of Right of Rescission
Is used in case of Refinance and Second Mortgages, but not when property is subject of a sale. The notice of Right of Rescission gives the Borrower(s) the right under Federal Law to cancel the transaction, without cost, within three business days.

Pertain to Seller

Seller's Affidavit of Seller's Affidavit of Residence Verifies the Seller(s) is not subject to State of Georgia Capital Gains Tax withholding requirements.

Seller's Certificate of Exemption
Used in conjunction with the affidavit if Seller is not a resident of the State of Georgia, Verifies Seller's exemption from State of Georgia Capital Gains Tax withholding.

Owner's Affidavit
Affidavit of Seller(s) certifying that the property is conveyed "free and clear" of any liens, claims or judgments.

Warranty Deed
The Instrument that conveying title to real property from Seller(s) to Purchaser(s)

URL: http://atlantafinestrealtor.com/

How Does Short Sales Work

Royan Johnson (Century 21 Intown Realty ) — Wed, 06 Aug 2008 13:32:23 -0700

Short sale is simple in theory. You owe more than the home is worth or you can no longer pay the mortgage payments so in order to sell without bringing money to the table yourself you must convince the bank that you have a financial hardship and cannot make the payments. The bank may then agree to take a lower payoff than the total loan amount. Example: if you owe $350,000 but can only sell for $300,000 then the bank will be "forgiving" $50,000 in debt. But, at least you've sold the home and avoided foreclosure. In practice short sale usually isn't that simple. There is a lot of work that needs to be done. A short sale package must be put together to show bank hardship, inability to pay, the homes value, repairs, net to the bank after sale etc. It will be the banks decision whether or not to accept or reject an offer. The bank will have the final say over any offer you accept, because the offer will be less than your loan payoff. Banks can take their time with a decision but I think that many banks will be speeding up the process as time goes on and they get their loss mitigation departments up to speed. If you are able to make your mortgage payments you probably should. However, bank will usually not consider a short sale as an option until you've already missed a couple payments. But, those missed payments will show up as late payments on your credit report so, the fewer there are the better. Before putting your house on the market have your agent check what other properties are SELLING for in your area (In other words make sure your agent do a Market analysis for your area). Not what they are "on the market" for but selling for. Start there and lower your price quickly until you get an offer. Remember you are under a time constraint if you want to avoid foreclosure. The key thing is to get an offer. Once you have one you'll at least have something to work with even if it is low. Keep in mind that a short sale will have less of a negative impact than a foreclosure will on your credit. The consensus is that a short sale will cost you around 100 points on you credit score while a foreclosure will cost you 200-280 points and stay on your credit report much longer. So, pursue the short sale aggressively to avoid a foreclosure. Another thing you should be aware of are the tax consequences. You may end up owing taxes on the amount of debt that is forgiven. There are ways you may be able to avoid the tax. If you can show you were insolvent at the time of the sale then the IRS may exclude the debt forgiveness from taxation. Take a look at section 108 of the IRS Code and form 982. You might want to consult with an attorney or accountant that is familiar with the process because it could end up saving you on your taxes.

How to Write a Short Sale Hardship Lette

The Hardship Letter is part of the short sale package and is written by the seller or their representative. It is used to explain to the lender the reasons for the borrower's need for a short sale. Reasons such as divorce, job loss, medical issues, etc. can and should be included. Usually just a one page letter with the pertinent information will suffice.

A simple letter in the following form should suffice:

DateLender NameAddressLoan NumberDear Sir/Mama,{In this section explain your hardship and why you must utilize a short sale - some example hardship reasons are listed below}

Unemployment
Reduced Income
Divorce
Medical Bills
Too Much Debt
Death of my Spouse
Death of a family member
Payment Increase
Business Failure
Job Relocation
Illness
Damage to Property
Military Service
Other (Please Specify)

Borrower's SignatureDateCo-Borrower's SignatureDate

URL: http://www.atlantafinestrealtor.com/