Short sales & Your Credit

Facts about Short Sales:

Effects of Short Sale on your Credit Report:• 200-300 point reduction on your FICO score, depending on the borrower.
• Inability to obtain a mortgage for at least 24 months.

Effects of late payments on Credit Report:• 30-60 day late payments: an “isolated occurence” (do not have 30-60 day late payments on multiple accounts) does not cause long term damage to your credit.
• 90-120+ day late payments: drop credit score for the long haul (around 7 years).

Effects of Collections (post Short Sale Deficiencies) & Debt Settlement• Credit score will suffer with both; with debt settlement, however, you’ll eventually repay your debt and thus helping to rebuild your credit score
• Do not simply leave your debt hanging with collections in hopes that they will charge off the loan. They will continue to report that you are in default of “installment payments,” etc. They can do this for years. It is better to settle your debt and move on. You especially do not want additional 90 day late payments reported as your credit score at that point will drop significantly.

For more information, feel free to contact us at (425) 889-9300 or @ ScottWeitz@weitzlawfirm.com.

For our website, please clink link for Short Sale Attorney in Kirkland.

Lowering Your Mortgage Payments

If you are like many people right now and behind on your mortgage payments, you can lower your mortgage payments in a variety of ways.

Loan Modification: This is negotiated between you and your lender. While it is at the discretion of your lender to approve the modification, here are a few ways through a Loan Modification to reduce your monthly mortgage payments:

Extend the Repayment Period -- By extending the repayment period on your loan, you bring down the monthly payments and allow your home to appreciate in value, gaining equity.

Reduce the Interest Rate -- Negotiate with the lender to apply the current market interest rate, assuming it is lower than what you are paying right now.

Forbearance: This allows for you to reduce or suspend your payments for a period of time. The downside here is that at the end of the period, you must pay an extra amount on top of the payment due.


For more information, contact a Kirkland Real Estate Attorney.

Economic Considerations of Foreclosure

Foreclosing on your home requires serious consideration for any homeowner. Besides the emotional strain, homeowners must also look at the economic considerations involved in possibly foreclosing on their home. Here is what you should ask yourself:

(1) Do I have equity in my house?

This is a highly important question for any homeowner considering foreclosure. To find out what your home is worth, put your address in at www.zillow.com, www.housevalue.com, or similar websites.

If your home is worth at least as much as you owe on it, foreclosure may not be your best option. Or you can sell the house and free yourself from the mortgage.

(2) Can you make your monthly payments?

An old rule of thumb is that a homeowner should not pay more than 25% of their gross income for shelter. If your mortgage payment exceeds 25% of your gross income, you may need to evaluate whether this is sustainable for the future.

Additionally, there are also online calculators that, while imperfect, can give you an idea of how much house you can afford. Google "home affordability calculators" and choose one for yourself.

Finally, ask a Budget-Counseling Agency to look over your income and expenses to help determine if you can afford your monthly payments.

For more information, contact Kirkland Foreclosure Attorney.

Washington Deficiency Judgments Post-Foreclosure

One of the major components of deciding whether to stay in your home or simply walk away is whether you will owe in money should you decide to walk away. In Washington State, the foreclosing lender (typically your 1st mortgage) can not pursue a deficiency judgment except under rare circumstances (a judicial foreclosure - which is extremely rare). Unfortunately, all other mortgagees & lines of credit can pursue a deficiency, however, it is possible to wipe them out by filing a Ch. 7 Bankruptcy or Ch. 13 Bankruptcy.

In sum, if you have just one mortgage, you will be able to walk away from your mortgage without owing any money. If you have multiple mortgages, the decision process will be more complicated.

For information on Washington Foreclosure Laws, please consider seeing a Washington Foreclosure Specialist.

Our Firm:

Weitz Law Firm
Kirkland, WA 98033

(425) 889-9300

weitzlawfirm.com

Washington Foreclosure Timeline/ Process

Over the course of this blog, I will provide detailed information on the Foreclosure porcess in Washington. Detailed information on the foreclosure process, tips to stop foreclosure, arguments to fight foreclosure, and ways for consumers to maximize their time in their homes throughout this process. Millions of people throughout the country find themselves struggling to stay in their homes, we want to a valuable resource for people in this unprecedented economic times. While this information will be helpful, it should not be construed as legal advise, and should not take the place of Seattle Foreclosure Attorney.

PLEASE SEE RCW 61.24 for any updated laws to the Washington Foreclosure Laws.

The Washington Foreclosure Timeline:

1) The Mortgage holder (ie. bank, investor) generally must provide an option for the homeowner to elect a Face to Mediation to review their loan rights and avoid foreclosure whether that be short sale, loand modificaiton or otherwise at least 30 days before serving a Notice of Default. This is will come in the form of a 'Notice of Pre-foreclosure Options'.

Note that this law is new as of July, 2011 and there are exceptions to this rule that should be discussed with a Attorney or HUD Counselor.

2) A Notice of Default must be served on a Homeowner at least 30 days prior to serving a Notice of Trustee Sale.

3) A Notice of Trustee Sale must be served at least 90 days prior to the actually Trustee Sale (Foreclosure sale).

4) The Trustee Sale is the actual foreclosure

5) After the sale, a homeowner has 20 days to abandon the property under Washington law.

Homeowner Tip: Without any additional delays like a loan remodification request, or bankruptcy, a Homeowner can have 170 days of rent free living!!!

For further tips on navigating the foreclosure process, please see a Seattle Foreclosure Attorney.

Our Firm Contact information is below:

Weitz Law Firm, PLLC
520 Kirkland Way, Ste 103
Kirkland, WA 98033
(425) 889-9330

scottweitz@weitzlawfirm.com

Protest Your King County Property Tax Assessment

General Facts about King County Property Tax Assessments:

King County property owners who believe the assessed value of their property exceeds its true value may appeal following the receipt of the Assessor’s revaluation notice by timely filing a petition to the King County Board of Equalization on OR before July 1st of the assessment year OR within sixty (60) calendar days after the date listed on the Assessor’s value change notice (whichever date is later). For more information, please see an experienced King County Real Estate Attorney.

How to Appeal

Filing an appeal with the BOE only requires the submission of two sets of the BOE’s petition form. As long as your petition includes sufficient information or statements to apprise the Board and the Assessor of the reasons why you believe the Assessor’s determination is incorrect, it is not necessary to include all the documentary evidence you intend to submit within you initial filing.
Factual Error Corrections


Assessor’s Response to Your Appeal

You can expect a response from the Assessor in two to six months. Based on the evidence included within your petition, the Assessor may choose to recommend an adjustment in the assessed value. If this occurs and you agree to the Assessor’s stipulated or recommended value amount, the need for a hearing will likely be eliminated. About 20% to 25% of the petitions filed each year are resolved in this manner.

For assistance in appealing your property value, consider contacting a Kirkland Real Estate Attorney.