All the terms and acronyms for short sales and foreclosures can be a little overwhelming. Here is a list of the most frequently used.

Pre-Foreclosure – the period beginning with initial mortgage default up to when a distressed property is sold. The length of which is considered Pre-Foreclosure and varies depending on state laws.

NOD – short for a notice of default. This is an official notice from the lender that the borrower has defaulted on the mortgage. The notice formally begins the foreclosure process. The notice of default also outlines the reinstatement.

Reinstatement Period – the time stipulated in the notice of default in which the borrower may reinstate the loan, making required payments and bringing the account and a good standing.

Short Sale – a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and is unable or unwilling to bring money to closing. The seller may or may not be in Pre-Foreclosure.

Notice of sale – if, after receiving the notice of default, the borrower does not reinstate the loan, the notice of sale is recorded. The notice of sale explains when and where the foreclosure sale will be held.

Foreclosure sale – also known as the sheriff’s auction or trustee sale, is when the property is auctioned for sale to the highest bidder.

Redemption Period – the amount of time that the distressed owner has to redeem the real estate after the foreclosure sale. Redemption typically requires that the owner pay the sales price, interest, and other costs. Not all states provide redemption.

REO – the acronym for real estate-owned. REO as the status of a property when a foreclosure sale is not successful and when ownership of the property is transferred involuntarily to the lender.

As with any real estate transaction, it is highly recommended that you seek both legal and tax advice from qualified professionals.

Anthony Phillips is a Las Vegas Realtor and has received his National Association of REALTORS® Short Sales and Foreclosure Resource certification and the Executive Financial Management certification from Cornell University.

Visit my site at http://www.mylvhomesales.com

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Whoever said that, couldn’t have tried selling a house in the 2008-2009 recession. House prices, dependent on buyer confidence and the availability of mortgages, tumbled; the market stagnated and both supply and demand fell off a cliff. We put our house on the market in autumn 2008, pricing it below the estate agent’s valuation. There were some viewers but we didn’t think they were serious prospective buyers. Some were looking for a bargain at distress prices, others were just plain nosey. We rejected a rock bottom offer.

And so it went on, through the winter and into spring 2009. More viewers, no buyers. We dropped the price, twice. Still viewers came and still we had no success. We reached the point where we’d rather stay put than reduce the price again. Then we did what we should have done a year earlier. We put some money and thought into the property. We applied marketing principles. Dark carpets were replaced by new ones, in neutral colours. Dated wallpaper was replaced with a light pastel paper. Pictures came off the walls, treasures were put away. We allowed potential buyers to see the house as a backdrop for their own tastes, not ours.

By this time we recognized that you don’t market a house, you promise a lifestyle. A new front door, slate house name sign, neatly trimmed hedges and lawns, well-tended flowerbeds all gave our house kerbside appeal. We decided that our eagerness to sell was having an adverse effect on viewers so we resolved to focus even more on lifestyle rather than the property itself.

We didn’t put the coffee pot on. Instead, we trusted the next viewers to wander round unaccompanied. They stayed longer and as if by magic, phoned back later to say they’d like to look again. This time I sat in a shady part of the garden, empty mug and Saturday supplements strewn untidily across the table. Our buyers commented that I’d found the perfect place for some peace and quiet. I agreed and they wandered, all the time thinking themselves into our leisurely lifestyle.

We didn’t sell to that couple but they did increase their offer and within two weeks we had another viewer. We did the same thing, depicting a lifestyle instead of trying to sell a house. This couple viewed again the next day, made an offer and we sold. Without the use of simple but effective marketing measures, we probably would even now still be looking for that elusive buyer. I have no idea why it took so long for us to pick up the tools that had been there for us from the very first day.

Footnote:

Contrary to perceived wisdom, we were entirely happy with our estate agents. They were professional and reliable, and went out of their way to help. Fenn Wright, thank you!

Ian Thurgood

http://www.sixtonant.co.uk

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If you are venturing into the real estate market, you need to be able to accurately determine the value of real estate. Many things can affect the value of real estate, and one of those things is property tax.

Evaluating the value of any property you want to sell is important because this determination will help you to decide if it is going to be profitable to sell your real estate interests at the present time. Some people think you can get an accurate idea of a property’s worth by doing comparables. Comparables are properties similar to yours within the same basic location. You can check county records and see what these homes have sold for recently, and gain an idea of what yours may be worth. Comparables, however, are tricky. They are an educated speculation, but they are a speculation.

Two properties, with relatively similar attributes can have widely varying values depending on many factors. One property might be located in what is considered a good neighborhood, while the other might be in a bad neighborhood, even though they are within mere blocks of one another. One of the properties might have a new heating system, while the other’s is old and outdated. One might have a one-car garage, while the other has a two-car garage with an apartment above it. The property taxes on these houses might also vary widely.

A change in the property tax will result in a change in the property value. The basic way to affect change in your property tax is to do improvements to your real estate property. Some people hold off on these improvements for fear of a property tax increase. The increase usually does not come until a number of years after the improvements. So, if you are going to sell a real estate property, you could greatly increase the value of your home through certain improvements without raising the property tax.

Improving things in a residential property like the kitchen, the bathroom, and installing insulated, maintenance-free replacement widows can increase a real estate property value dramatically. Even if such improvements were to increase the property taxes on this real estate, you may have raised the property value enough to make the tax increase inconsequential.

So, while property taxes are a consideration in determining the value of your real estate property, you do not want fear of property taxes to inhibit you from substantially increasing the market value of your real estate property.

When you make improvements in your property, you have the fear that it will lead to an immediate increase in property taxes. However, this is not true. What is the relation between property improvement and property taxes? Chintamani Abhyankar provides useful advice.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous Tax eBook “Stop donating your money to IRS” which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

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