On the fence about selling your underwater Gainesville FL real estate as a short sale?  Consider this: if your home isn’t sold before January 1, 2013, and you owe $50,000 more than its market value, you could realistically end up paying more than $12,000 in taxes in 2013 if you’re in the 25% tax bracket! Once you decide on going the short sale or foreclosure route—and remember, short sales often take a long time to sell–the first thing you need to do is to request that your lender officially and in writing  waive any deficiency connected with your Gainesville FL real estate.  If this waiver is not granted, the lender has 20 years to obtain repayment from you via collection agencies, garnishments, and/or liens.

Because of the impending deadline and the length of time required for short sales and foreclosures, many real estate and financial gurus stress the importance of acting now to set wheels in motions.  They urge distressed owners of Gainesville FL real estate to realize that there is no tax exclusion allowed on pending closings/foreclosures.  Only transactions completed by December 31, 2012, are eligible for income tax relief—and there are no indications that the current deadline will be extended!

Tax Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment) is used to report the exclusion of forgiveness of qualified principal residence indebtedness.  After your receive Form 1099-C, Cancellation of Debt, from your lender (required by law and submitted to the IRS), download and complete Form 982 and attach it to your tax return.

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Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

Good debts are those which can be looked at as investments and those which will contribute to your overall financial health.  The best example of good debt has been for many years the purchase of a Gainesville FL home and is still considered as such by many.  Another good debt would include a student loan to finance higher education.   Financing a car is also perceived as good debt provided that you make as large a down payment as you can reasonably afford and that you intend to keep the vehicle as long as you are paying for it. Generally speaking, good debt includes the purchase of items which you could not afford without wiping out your cash reserves or liquidating your investments.

On the other hand, bad debt occurs when you borrow to purchase a consumable item without fully comprehending the influence of that purchase on your financial well-being.  Excessive credit card use is an excellent example of bad debt, especially given the high interest rates charged.  One obvious flaw in the credit card system is that it encourages users to purchase things they can’t really afford, a posh vacation or the addition of a pool for their Gainesville FL home  e.g., without having to pay for them at the time.  It goes without saying that payday loans and paying pawn shop interest are very poor—and costly—practices which should be avoided entirely.

How to manage your debt?  You can begin by figuring out your credit utilization or your debt-to-credit ratio, which tells you how much you have borrowed of the total amount available to you.  The lower the percentage, the better for your credit rating.  Creating a plan to pay off your bad debts, especially those with high interest rates, is another important step in achieving financial stability.  Many financial counselors urge borrowers to pay off credit cards and car loans before considering taking on student debt or a mortgage for a Gainesville FL home.  Another strong caveat is not to pay off one loan with another, such as using a home equity loan to repay bad debt.  The best practice is to use cash to pay off debt.  One way to increase your available cash is to analyze your spending pattern and carefully monitor unnecessary expenses.  Other suggestions for managing debt include taking steps to lower household bills, refinancing a mortgage for a lower interest rate, and requesting a reduced rate of interest from credit card companies.

Search all Gainesville FL real estate and Gainesville FL homes for sale.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

Your credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Gainesville FL homes. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans. Scores ranging from 650 and below are considered bad and indicate to the lender that you are a very high risk. Chances are you will be unable to secure a loan, or if you are, it will be at a much higher interest rate and/or require a cosigner.

What If there Are Errors

What to do if you have a low score and do not qualify for a mortgage on a Gainesville FL home? Your first action should be to check your credit report for errors. If you find erroneous information, you need to act immediately by contacting both the credit bureau (the three major ones are Equifax, Experian, and Transunion) and the organization that provided that information.

• The credit bureau/agency: Send a certified, return receipt requested letter to the bureau pointing out each inaccuracy and enclose copies of documents which support your claim as well as the report itself (with the misinformation highlighted). Factually explain why you dispute each item and request a deletion or correction for each one.
• The creditor or information provider: Send the same type of letter and enclose the same documents. Request that the provider notify you of action taken (generally within 90 days) so that you can verify the amended information.

If there are no errors on your report, then you should take immediate steps to improve your credit. Ways to do this include the following:

• Stop using your credit cards. Do not continue to accumulate debt.
• Get current on delinquent accounts. Since payment history makes up 35% of your score, this action will have a great impact on your score.
• Keep accounts with balances open, but don’t apply for more credit.
• Call your creditors. Explain your financial situation and ask about possible hardship programs which will temporarily reduce your monthly payments.
• Begin paying off your existing debts, even if you have to sell some belongings to do so. Come up with a get-out-of-debt plan and stick to it.
• Get professional help. There are resources available to help you reestablish a good credit rating. Contact the National Foundation for Credit Counseling for assistance.
• Be patient. Realize that improving your credit score takes time and that there is no quick-fix –and keep in mind your goal of owning a Gainesville FL home.

Search all Gainesville FL real estate and Gainesville FL homes for sale.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form. 

Home Equity Loan

A Home Equity Loan refers to a second mortgage that is structured in a very similar way to your first. With a HEL, you choose a fixed amount that you want to borrow, close on the loan, and receive a check for the amount you have chosen. You have regular monthly principal and interest payments that are structured over a period of years. Upon completion of those payments, your Gainesville FL home equity loan will be paid in full. If you decide later that you would like to draw additional funds, you will need to arrange for an additional loan with additional closing costs. HELs usually carry a fixed interest rate. HELs offer a straightforward plan for paying the money back.

Home Equity Line Of Credit

A HELOC (Home Equity Line Of Credit), on the other hand, is a line of credit from which you can withdraw money again and again. In many ways, a HELOC is just like a credit card, but the interest you pay is tax-deductible. You will close on a HELOC only one time, but if you decide after a few months that you need to withdraw additional money, you will be able to do so up to the value of the loan. HELOCs offer payment flexibility not available on HELs; you can make interest only payments for a number of years on a HELOC.

Consumers should consider several things before jumping into either financing option, experts say. That’s because home equity lines of credit typically are a good deal for those who want a lower up-front rate and access to money at unpredictable times. However, home equity loans are better suited to those who need a specific amount of money and payment stability. Whichever you choose, be cautious about the amount that you borrow since both types of loans use your home as collateral. If you ever default on either type of loan, you put your Gainesville FL home at risk.

Consider, too, the time factor, the closing costs, and annual fees associated with each type. Generally the closing costs are about the same for the equity loan and the line of credit, and the application process for each takes approximately two weeks. Those who opt for the line of credit, however, will have to apply and pay closing costs only one time, and they are subject to lender credit reviews (usually based on your credit score) only every one to three years to keep the credit line open to them.

Credit line upkeep can still lead to annual maintenance fees similar to those charged by credit card issuers, and some borrowers will also be charged fees if they don’t use the line for a long enough period of time. The rate benefit of lines of credit can help offset those costs. The credit line rate is often even lower for at least some period because stiff competition among lenders has spurred many to offer introductory teaser rates and other incentives. Check local rates in your neighborhood. Despite all the benefits of a line of credit, experts still advise people who need to make purchases of predetermined amounts to go with a home equity loan. That is in part because payments will be locked in at signing, rather than fluctuate along with the outstanding balance.

Consult with your loan officer and financial planner to decide whether a HEL closed-end second mortgage or a HELOC would best suit your needs. Examine all the costs associated with the loan and do some thorough comparison shopping. If you do your homework and review all the options available, you will be well on your way to finding the right equity loan for you.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

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There are three types of foreclosures used by individual states, judicial, power of sale, and strict foreclosure.

            1. Judicial is allowed in all states. After the lender files with the judicial system, you will receive a notice for payment. After 30 days with no response from you, the property is sold at an auction conducted by the court.

            2. Power of sale, also known as statutory foreclosure, is allowed in many states if your mortgage contains a “power of sale” clause. In this case, the mortgage company, after sending out the required notices and waiting for an established period of time, carries out the auction of your Gainesville FL home.

            3. Strict foreclosure is allowed in some states and provides for the property, again after the required notices and time period, to revert directly to the lender. No auction is involved. Usually this type of foreclosure occurs only when the amount of the debt exceeds the value of the property.

If you cannot meet your mortgage obligations, the lender must notify you in writing as it proceeds with each step of the foreclosure process, designed as follows:

            1. Notice to accelerate: Once you are sixty days past due, you will receive a notice to accelerate. The only way to stop the process at this point is to bring current the loan amount past due plus any assessed late fees. You may also be informed that you will be responsible for any attorney fees incurred.

            2. The demand letter: If you do not pay the past due amount by the date previously established by the lender, it will hire an attorney to send you a demand letter stating that, without immediate payment, the foreclosure will be sent to the court.

            3. Notice of default: Without a payment from you, the lender will file a formal foreclosure notice with the court. You will have 20 to 30 days to respond to this judgment before further steps are taken.

            4. The notice of sale: After no response from you in the allotted time period, you will be given a notice of sale which sets the date of the court’s auction or the repossession of your Gainesville FL home by the lender.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

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1. Department of Housing and Urban Development (HUD) offers explanations and logical steps to home buying. Access this site to:

• determine how much you can afford to pay
• understand your rights
• learn about home buying programs
• find a home and a loan suited to your needs
• learn about price negotiations, inspections, insurance, and closing costs

2. FHAHomeLoans.com will provide you with

• a description of available programs
• qualification requirements
• an application to download

3. HUD.gov supplies information about

• available state programs
• HUD homes
• buying Gainesville FL real estate with bad credit
• counseling agencies
• types of loans

4. Fannie Mae brings you a home buyer’s guide which involves

• a glossary of terms
• financing tips
• advice on making an offer on a Fannie Mae owned piece of Gainesville FL real estate.

5. For low-income individuals who don’t have funding, can’t secure a conventional mortgage, or need a lower down payment, an option is obtaining grants.

6. And finally, potential homebuyers with disabilities should check out MortgageLoan.com for available resources.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

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        1. Down payments: Requirements will be higher. Generally speaking, to get the best interest rate you need to put down at least 20% of the purchase price of the Gainesville FL real estate. FHA loans are available for a down payment of only 3% to 5% but these loans will include additional costs for insurance and a slightly higher interest rate.

        2. Credit scores: You will most likely need a score of 730 for the best rates, whereas the average score for an FHA borrower is about 690. Financial advisors strong urge you to obtain a copy of your credit report six months before loan shopping (you are entitled to one free report from each of the three bureaus annually at) and examine it carefully to detect any errors/misinformation.

        3. Documentation: Be prepared! Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses. Monthly housing expenses should not exceed 28% of your gross monthly income, and total debt should be less than 37% of that amount. If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement.

        4. Appraisals: Gone are the days of a sure-thing, easy appraisal. Lenders today want a thorough inspection of both the interior and exterior of your Gainesville FL real estate, and the less money put down, the more extensive the scrutiny of the home’s market value. It is wise to include an appraisal contingency in your offer so that your earnest money deposit will be returned to you if the appraisal fails to meet the negotiated price.

How can you find the best rates? Check out available interest rates daily and discloses the best “par rate.” In addition, if you provide contact information, the site will forward that information to the local lender offering the best rate.

If you are considering refinancing your Gainesville FL real estate, take advantage of this calculator to help determine if this is a good financial move for you.

You should also avail yourself of the consumer-friendly good faith estimates (GFE) that lenders are required to give you and with which you can compare offerings. (Search online for “HUD + good faith estimate” for an example.) This form clarifies the type, rate, and features of the loan for which you’re applying. These rates are guaranteed, and if the charges are underestimated, the lender, not you, if responsible for the difference.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form.

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The IRS is sending letters of explanation of the repayment procedure to all taxpayers who claimed the credit in 2008. Generally speaking, all first-time 2008 home buyers will need to pay an additional $500 on their taxes from 2010 to 2025, provided the house is not sold before then and remains the owner’s primary residence.

If you sell your Gainesville FL home before 2025, any profits will first go to paying back the tax credit in full. If you sell at a loss, the difference will be forgiven, although, as is typical with most forgiveness agreements, you must record that amount as income and pay taxes on it.

If, within 36 months after buying your home, the property is no longer used as your primary residence due to a divorce in which your spouse retains the house; conversion to rental property, a business, or a vacation home; or foreclosure, the full amount of the unpaid credit must be paid in full with the tax return for the year in which the change occurred. You will need to file IRS form 5405 with your return in this case.

Because individual situations vary, it is important for 2008 Gainesville FL home buyers to consult a qualified tax professional to make sure they are fulfilling all obligations of their purchase and subsequent credit.

1. Make sure that all security browsers on your computer are current and self-updating. The computer in your Gainesville home is only as safe as you make it.

2. NEVER give out your social security number!

3. Use only secure and reputable websites. Secure websites add the letter “s” after http on their order page. Another indicator is a closed lock seen at the bottom of your screen.  It is safer to use a website you’re familiar with or one found using a well-known search engine. You should also look for a physical address and customer service phone  number, although those things are not always a guarantee of safety. To check on the reliability of a site, contact the Better Business Bureau.

4. Limit the personal information you provide. In fact, because merchants sometimes sell your email address, you may wish to create an email account that you use only for online purchases. Also, use the same credit card for all online purchases to aid in tracking fraudulent transactions or a security breach.

5. Check out shipping and handling charges before ordering. Merchants often add as much as 10%-15% of the product’s cost to your order.

6. Print out copies of your order, shipping confirmation, etc. on your Gainesville home computer.

7. Be familiar with the return policy. Are returns allowed at all? Is there a time limit? Is there a “restocking” fee for returns? Who is responsible for paying shipping and handling         on returns? If return information is not posted on the website, request that it be sent to you.

8. Pay with a credit card. Paypal and debit cards require an immediate reporting of fraud in order to get your money back. Also, your liability for fraudulent credit card charges is zero when the card is used online. Check with your credit card company to see if they offer a virtual card, which masks out your real account number.

Cyber-shopping is fast and convenient. It provides you with a vast array of products from which to choose in the comfort of your Gainesville home and allows you to shop at any hour.. Buying online can be an efficient and pleasurable experience if you remain web-wise and security-savvy.

Suggestions for making a Gainesville FL Real Estate inventory include:

• Organize it by room.

• Describe each item, including make and model, and where it was bought. Record the serial number, if the item has one.

• Attach sales receipts, purchase contracts, and appraisals to your list.

• For clothes, count each type of item, such as pants, shoes, shirts, coats, etc. Particularly note those that are valuable.

• Supplement your written list with photographs. Make sure you label the photos. *If you have a video camera, videotape each room. You can also add a narration as you tape.

• Don’t forget items that are in drawers, closets, attic, and basement.

• Use your computer. Make your list, scan in receipts, photos, and other papers. Keep these in a fireproof box. Make a copy of your inventory and photos and store them away from the house.

• Add valuable new items (such as a new entertainment system) to the inventory when you purchase them. Review and revise the list annually.

What is generally covered? Under the HO-3 policy type (the most popular), damage caused by perils and hazards such as fire, lightning, smoke, windstorm (in certain parts of the country), hail, vandalism, falling objects, theft, weight of snow or ice, vehicle striking the structure, building collapse, water damage from bursting pipes, and structural damage from an electrical surge are covered.

What is usually excluded? Under the same HO-3 policy, damage not covered includes that caused by an earthquake, floods, windstorms (in certain parts of the country), war, pets, birds, rodents, or insects, sewer backup, pollution. Damage done by you or that which is the result of normal wear and tear is also excluded.

Do not despair, however. You can add riders or special endorsements to your policy to cover some of the above-mentioned exclusions and/or to increase the coverage for items whose value exceeds the basic limits. Some of these endorsements can include: wind, sewer backup, jewelry, fine art, furs, theft coverage protection, etc.

Valuable items such as jewelry, art work, and collectibles should be appraised so that you will have adequate coverage. Another thing to consider is adding a rider to insure your home office if you do not have a separate business policy.

So you have purchased adequate insurance for your Gainesville FL real estate, have inventoried your belongings, and have put that list in a protected place–and you’re feeling secure and confident. But what if life throws you a curve and your property is stolen or damaged? Then what? Look for Part III in this series for help in filing and/or settling a claim and for tips to prevent losses at all.

Guide To Insuring Your Gainesville FL Real Estate – Part I