Jon Griffith, Certified Short Sale Negotiator

Challenge:  Buy a primary residence with a loan.

After Forclosure:  Probably not for about 5 to 7 years.
After Short Sale:  More likely 2 years.

Challenge:  Borrow to purchase an investment property.

After Foreclosure:  You’ll be waiting 7 years before you can do this.
After Short Sale:  2 Years and you’re golden.

Challenge:  Borrow money from anyone other than Fannie Mae to purchase a property.

After Foreclosure:  Applications ask if you’ve foreclosed.  By law, you have to disclose.
After Short Sale:  No applications will ask if you have ever sold a house short of what you owe.

Challenge:  Maintain Credit Score

After Foreclosure:  You’ll be affected by 250 to 300 points for roughly 3 years.
After Short Sale:  When you close a short sale, they report the debt as paid for less.  This is not as derogatory as a foreclosure, and may only drop your score by about 50 points for a year to a year and a half.

Challenge:  Sparkling clean credit history

After Foreclosure:  This will remain on your credit report for 10 years or more.
After Short Sale:  Not reported.  They do not report “Short Sale” on credit reports.  It will be reported as Paid or Settled.

Challenge:  Get a job in the military or other highly secure position in corporate America.

After Foreclosure:  Not likely.  You blew it dude.  Now you have a history of bailing out.
After Short Sale:  No problem.  Won’t show up on a background check.

Challenge:  Stay employed.

After Foreclosure:  Disclose that you foreclosed on your property and your employer may catch wind of it, which could lead to termination, especially if you’re in a position that is sensitive to the company.
After Short Sale:  Not reported on your credit, so they won’t have a clue.

Challenge:  Get a job.

After Foreclosure:  Employers can check your credit, and challenge your potential employment due to this type of derogatory mark on your history.
After Short Sale:  Not Reported.  You’re hired!

Challenge:  Avoid a deficiency judgment.

After Foreclosure:  If you live in a state that is a non-deficiency state, you may be safe, but if you don’t, you may be on the hook for the difference of what the house brings at auction, and what you originally agreed to pay.
After Short Sale:  No deficiency, depending on the type of loan.  Part of the short sale agreement typically releases you from all liability.

Challenge:  Minimize the amount of the deficiency.

After Foreclosure:  The cost of foreclosure increases the amount you’ll be deficient.  If your home forecloses, you could end up being on the hook for far more than if you sell short.
After Short Sale:  Short sales, unlike bank owned properties, sell closer to market value, thereby minimizing the amount that you would be deficient.

An article was recently pushed across my desk which really has made a difference in my life.  It was written by Bill Gray, and I’m not sure where the article was originally published, but I’m posting it here so you have the chance to also read it.

DISCIPLINE, by Bill Gray

Over time it has been proven, without a doubt, that those who possess self-discipline are the most successful.

Self-discipline relates to a person’s integrity and moral ways; it becomes an internal compass that leads you toward your goals.

Those with discipline do not need to be told what to do and rarely need a guidance counselor too lead the way.  No one tells a person with discipline when to get up, when to go to work, or what to do when they get there.  This type of person will set his or her own priorities and schedules and meet their own deadlines.

Self-discipline is more powerful than luck, aptitude, or talent, and provides greater results.  Discipline allows you to set your siights on a target and find a way to achieve it.  It will wear down th etoughest opponent and help overcome the greatest obstacles.

Discipline is the primary ingredient to economic success.  If you lack discipline, your chances of success are slim.  Many with outstanding futures and abundant talent have failed when discipline was lacking.

Most unhappiness comes from a lack of discipline.  Society makes millions of dollars a year on those who lack self-control.  You can inherit a million dollars, but without a disciplined plan you will be no better off in a few years.

We live in a society of abundant “starters” but very few “finishers.”

Bill Gray is publisher of the Arizona Journal of Real Estate & Business and president of the Arizona School of Real Estate & Business.

As of now, we have a total of 43,705 single family detached homes on the market.  Our total number of residential listings is at 52,542.  A total of 1053 properties sold between August 18th and August 24th 2008, which was down from the 1200 that sold the previous week.

The average asking price for this week was $409,037 while the average sales price was $238,943 which was a slight increase over the previous week.  It’s time for the market to correct.  Prices over the next 12 months are expected to increase gradually, but not at the rate that we would normally expect of our real estate economy.

We’re currently

at an average of 112 days on market with roughly 9 1/5 months supply of inventory overall.

The world of Real Estate in Arizona is about shift.  July is a big month for the technically savvy agent because our property listing system is being completely overhauled.  But more importantly, it’s a big month for you because the system that you rely on to view property searches is being vastly improved.

Client Gateway is a clunky online system that allows you to see various properties based on searches that I have created for you.  Client Gateway will soon be a think of the past.  The new Flex MLS system enables you to login to a free online “Portal” to your property information.  Through this portal, you have far more information that Client Gateway could ever provide, and the system is much more efficient and responsive.  It’s also fun to use.

Rather than attempt to describe how it works or outline all of the features, I’ve included a link to a video tutorial that you can watch before you get started.

If you’re ready to begin searching for a home and you’d like to have your own personal portal login please complete the form below and I’ll set you up.

cforms contact form by delicious:days

I was recently sent a link to this video which expresses how many of us feel, most of the time, when we’re wired with a flair for creativity. I have that thing.

What Matters to You // Me? from Jr.canest on Vimeo.