The time may come when you have to make the tough decision to sell your home as a short sale or foreclose on your home. Selecting the option of a short sale provides benefits that many people are not aware of. Take a moment to review the benefits of a short sale versus a foreclosure on your home.

Credit Score-Opting for a short sale provides benefits to your credit score and future home purchases. A short sale will show as paid or negotiated on a credit report. A short sale can decrease your credit score by as little as 50 points, and you are able to purchase another home 12-18 months after your short sale. Foreclosures can reduce your credit score by 250-300 points and postpone another home purchase for 2-3 years.

Employment Opportunities-Many job applications require a credit check as part of their background check for certain positions or specifically ask if you have had a foreclosure. A short sale will not appear on your credit history report or this type of background check.

Renting-For many, after a short sale or foreclosure, there is a period of time where you are required to rent a home or apartment. Many properties have restrictions against people who have gone through foreclosures, or the foreclosure prevents the person from having the minimum credit score required to rent a home. A short sale does not appear on the credit history report. A person will still have the ability to maintain the minimum credit score to rent a home. This is extremely beneficial in helping you to move forward with your life and your next home.

The decision to sell your home as a short sale or foreclose on your home is a big decision. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures, visit my website.

Many going through or just completing foreclosure on a home think the worst is over, but in many cases people find it hard to regain a sense of control or normal after their home is foreclosed. Planning, preparing, and understanding how life may be different is essential to picking up and moving forward after a foreclosure.

Where to live--One of the items to start thinking about early in the foreclosure process is where will I live after the foreclosure is final. It is true that a recent foreclosure may hinder you from renting a home and for most people blocks a new mortgage for a minimum of two years. Start reviewing your housing options early in the foreclosure process and understand your new home possibilities and limitations. Landlords may require higher deposits or other items such as a co-signer due to your recent foreclosure. Review your home options and select your next home before you turn over your property to help reduce stress, provide time to pack, and give you something to look forward to during the foreclosure process.

Credit Fallout--Once your foreclosure is final and other creditors become aware, be prepared for possible changes from your other creditors. Any loan that has a variable interest rate may increase as much as thirty percent. Applying for new loans may be difficult and receive higher interest rates for the first two years. Try to have other debt payments up-to-date at the time of your foreclosure to minimize the level of upfront changes from creditors.

Taxes--Even though you foreclosed on the home, you may be responsible for a portion of the taxes owed on the property. This typically occurs when the amount the lender recovers is less than the amount owed, and the lender is not able to completely pay the amount of taxes owed. Work with an accountant to ensure that you make arrangements for any taxes that you are required to pay.  

Life after a foreclosure is challenging, and you may have multiple questions. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.

Are you one of the many people that had to foreclose on a home in the last 10 years? If yes, you may be wondering is it possible to purchase a home after foreclosure. Yes, purchasing a home is possible after foreclosure and it can occur sooner than many think. To help succeed at purchasing homes after foreclosure, please review the following tips and information.

Rebuilding Credit - One of the first steps after a foreclosure is to start building your credit once again. A foreclosure does negatively impact your credit, but with the right steps you can repair the damage to your credit. Ensure that each of your bills such as car loans, credit cards and utilities are being paid on time each month. If you are renting, strive to pay the rent each month on time and have a good relationship with your landlord. When applying for a home loan, lenders will review this information and it helps to determine whether you will quality for a mortgage.

Savings - A new home loan will require a down payment ranging 3.5-25% of the price of the home. Placing a set amount in your savings each month allows you to build the amount required for your down payment and teaches you responsibility over your finances. The discipline required to place money in savings each month shows your potential lender that you have improved your financial situation and are dedicated to continuing to strengthen your finances.

Do Not Max Out Credit Cards - Large amounts of credit card debit are warning signs to lenders and mortgage companies that you have not fully recovered your finances. The higher the amount of unsecure debt that you maintain reduces the available amount of income that you have to pay for a home loan in the eyes of a lender. Before starting your home search, take time to reduce your unsecure debit by paying off smaller loans.   

The decision to purchase a home after foreclosure is a big decision and I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.

When you fall behind on your payments on your home, it may feel that foreclosure is the only option, but understanding your options may help you to remain in your home. Many people find that there are available options to help you remain in the home and provide the time to help get your finances back on track.

One of these available options is a Claim Advance. This is simply when a mortgage holder provides you with a cash advance to bring your payment up to date. With this option, the amount is established as a second loan with a flexible payment start date. Many mortgage holders provide this option with little to no interest charges to the amount advanced. In cases where you have available equity in the home, you can use this to help you regain balance of finances.

Another option to consider is Re-Amortization. This option allows you to add the amount that you are behind to the original home loan. Keep in mind that with this option, adding to the amount of the loan will increase your payments unless the lender extends the length or term of your mortgage. Re-amortization is a great option for those who had an unexpected event result in the missed payments and the fresh start balances the finances. 

Research the options that your mortgage holder offers before the foreclosure process begins to determine what the best solution is for you. One step that many people forget or fear is speaking with the mortgage holder about your late payments. The lack of communication hurts your potential for staying in your home. Be honest and upfront with the mortgage holder and work with the lender to determine the best solution for you.

The decision for a claim advance or re-amortization to remain in your home is a big decision, and I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.

With all the TV shows about buying foreclosed property, a lot of people are receiving incorrect information about the process for buying foreclosed homes. Before you start scheduling appointments to view foreclosed properties, please review the information listed below to ensure you have accurate information about purchasing a foreclosed home.

Select a Real Estate Agent or Broker--First, select a real estate agent that specializes in foreclosures and is a CDPE--Certified Distressed Property Expert. I understand the entire foreclosure process, and I have the ability to ensure that your best interests are first. My expertise and understanding will provide you with an edge on the market, and I will be available each step of the process to answer any questions that you may have.

Lender Approval Letter--Sit down with the mortgage holder or bank, and obtain an approval letter for your loan. This will give you the ability to submit the approval letter with your sales offer on a property. A bank is more likely to approve a sale of a bank-owned property when they are aware your loan is already approved. This will reduce your time waiting at closing and help you to move into your home sooner.

Sold as Is--It is important to understand that the majority of foreclosed homes or bank-owned properties sell as is. As the buyer, you will be responsible for any repairs that the home will require and will need to take this into consideration when deciding on the amount to offer on a home. It is important to keep an open mind when looking at homes, and walk away from the home if the required repairs are more than you are able to handle or have resources for.

Price--Many people think a foreclosed home means you will have the ability to purchase the home for an amazing deal. This is not always the case in every home. As your real estate agent, I will perform the required comparisons to provide you with accurate information on the value of the home, so you can make your determination of what amount to offer on the home. The offer should be a fair price for the property or the bank will reject the offer to have the ability to accept a better offer from another person.

The decision to buy a foreclosed home is a big decision, and I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or

(936)321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures, visit my website.