North Texas Real Estate Talk

Location. Location. Location. It’s safe to assume we’ve all heard this term more than once or twice. One reason it’s so well-known is because of the truth and importance behind the words.

In the world of real estate, that one word (repeated three times as seems to be the rule), is the most important thing to remember when buying property. But the word location means more than just picking a property in a good school district, with a view or ease of access. A bad location is an incurable defect and one that should be heavily evaluated before a purchase is made.

The one main factor that you cannot change is a property’s location. Where it is located on a street, in a town, in a neighborhood, at a railroad crossing, backing up to a busy road, under a group of electrical towers…you get the idea, can dramatically impact the value of a home. You can change the carpet, paint the house, redo the landscape, but you cannot change where it is situated – unless of course you purchase a manufactured home, but let’s assume that isn’t the case.

Real estate professionals warn against buying a good home in an undesirable area, stating that location trumps all. Yet, there are those who will argue that the price is often so appealing for such a property it’s a great way for a buyer to get what they want without spending a fortune. Without a doubt you’ll save plenty of money by finding these ‘undesirables’, but at what cost? Chances are you’ll lose money when and if you ever sell the home.

Beauty is in the eye of the beholder and a nuisance to one person may not be a bother to another. However, it’s important to remember that a house in an undesirable location will have a lower value and probably no return on investment. You may be content living there, but you may one day have to sell it and therein lies the problem.

Location holds its value. Location is the foundation of real estate. Location matters.

If you owe more on your North Texas area home than it’s worth and can no longer afford the payments due to a hardship – you have options and we can help you understand those options.

As the number of foreclosures in the nation continues to rise, many homeowners with hardships have learned that doing a short sale on their home can relieve the stress of facing foreclosure.

What is a short sale? A short sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan.

Why would a lender agree to a short sale? Most lenders do not want to foreclose on properties, therefore, they would prefer to agree to a short sale and obtain a majority of the loan amount while avoiding excessive legal fees. In fact, CitiMortgage has even recommended that their delinquent borrowers consider a short sale.

Does a short sale damage my credit? Yes. Any time you are late on a payment or in default of a loan, it is documented on your credit report. However, a foreclosure has a much greater impact on your credit. Typically, lenders will not consider giving you a home loan for 7-10 years after a foreclosure, whereas a short sale may only negatively impact you for 5 years.

Making Homes Affordable is designed to assist homeowners facing foreclosure. There is a wealth of information on the site, a hotline and information to help you avoid foreclosure scams.  Short sales are not the only option to avoid foreclosure, and in fact, it’s only an option if you’re facing a hardship. If your home is underwater (worth less than you owe), that is not considered a hardship – but you might still be available for another type of assistance.

There is tremendous benefit to working with a qualified real estate professional if you intend to short sale your home. It is a stringent process, and their experience will be of great use to you. Each homeowner’s case is different and I highly recommend that you consult with a real estate attorney and tax attorney before entering into the prospect of either a short sale or foreclosure. A real estate professional is vital to have in your corner, but we are not licensed to give legal advice.

If you’re facing the prospect of foreclosure on your North Texas home – contact me today. Let’s discuss your options.

IMPORTANT NOTICE: Lisa Birdsong and/or Keller Williams Realty are not associated with the government in any way and our services are not approved by the government or your lender. Using our services does not guarantee that your lender will agree to change your loan or allow you to short sale your home. If you stop paying your mortgage, you could lose your home and damage your credit rating.