The effects of home foreclosure differ from the effects of short selling your home. The information below is provided by Distressed Property Institute and is helpful when wanting to see various aspects of short sales versus foreclosures at a glance. The information assumes the short sale was successfully negotiated and closed. To find out if you qualify for a short sale, please visit Mankato Foreclosure Help.
Obtaining a Future Fannie Mae Loan:
- Foreclosure: Ineligible for a Fannie Mae backed mortgage for five years.
- Short Sale: Eligible for a Fannie Mae backed mortgage in two years.
Obtaining a Future Loan with Any Mortgage Company:
- Foreclosure: Prospective borrowers will have to answer "Yes" to application question that asks "Have you had property foreclosed upon in the last 7 years?" and this will affect interest rates.
- Short Sale: There is no similar declaration or question regarding a short sale.
Credit Score:
- Foreclosure: Score may be lowered 250-300 points and is typically affected for three years.
- Short Sale: Only late payments on mortgage will show, and after sale, mortgage is normally reported as ‘paid as agreed’, ‘paid as negotiated’, or ‘settled’. This can lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as brief as 12 to 18 months.
Credit History:
- Foreclosure: Remain on credit report for 10 years.
- Short Sale: Not reported. There is no specific reporting item for ‘short sale’. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’.
Future Employment:
- Foreclosure: Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have.
- Short Sale: A short sale is not reported on a credit report and is therefore not a challenge to employment.
If you are facing foreclosure in the Mankato area and are worried about your credit score, you should be worried. In a recent edition of Philadelphia Inquirer an article titled "Housing crisis likely to taint credit scores” stated “In the case of foreclosures, for example, a person who had a solid credit score before her housing nightmare could see it fall more than 15 percent under the system used by VantageScore, a scoring mechanism involving the nation’s three main credit bureaus, Experian, TransUnion, and Equifax. Even if the person had paid all bills on time before, future lenders would see her as a subprime borrower, which would make obtaining loans difficult.”
Short sales, however, are a dignified way to save your credit and avoid the financial impact of a foreclosure. The credit effects of a short sale can be as little as 12-18 months and drop your credit score by as little as 50 points. Right now your credit score may not mean much to you, however eventually you will want to own another home. A short sale is not specifically reported on credit histories. Foreclosure is reported for at least 10 years, which means that when future employers check your credit history, they will see the foreclosure as a negative on your report.
Through the Making Home Affordable program administered by the US Government, you may also be entitled to $3,000 borrower relocation assistance. This can help in moving costs. Contact me today so we can assess your situation and find the best way to go.
If you are thinking of taking advantage of the historically low interest rates and purchasing a home, consider the following:
How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need.
Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. To determine how much home you can afford, talk to a lender or go online and use a "home affordability" calculator. Good calculators will give you a range of what you may qualify for.
Where the money for the transaction will come from.
Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender.
The ongoing costs of home ownership.
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner's association fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.
Many people moving to this area want to know where they can go to work out. Some people even include this in their search criteria for homes. Especially if they stop by the gym on the way to work. Below are gyms in the Mankato area.
Anytime Fitness is a 24 hour gym located in Mankato. It has a variety of cardio equipment as well as tanning, strength equipment and showers. XForce Fitness is also open 24 hours and has circuit training classes. This gym also has a full service child care facility.
Snap Fitness located on Commerce Drive in North Mankato advertises that it is "packed with the industry's best cardio and exercise equipment." It is also open 24/7 and has an online training, nutrition and wellness service. Curves is a well known gym that provides you with a complete cardio and strength training workout in just 30
minutes. It is located on Hoffman Road in Mankato. Build N Tone Fitness Mankato is conveniently located on Stadium Road. It is locally owned and operated with multiple forms of membership
plans and personal training.
With so many options and price ranges, there is hopefully a gym for you in the Mankato area!
Mankato continuously offers events for the entire family. Below are just some happenings in August.
The 13th Annual RibFest will be held August 5 - 8, 2010 at Riverfront Park. Diamond Rio and Soul Asylum will be performing. For more information, view their website.
The FREE Shop Til You Rock music-inspired mall tour will stop at River Hills Mall in Mankato on Saturday, August 7th and feature a performance by Machine 22. Visit ShopTillYouRock.com for more information.
Hey kids ages 7-15! Get ready to throw down with our Dodgeball Tournament!
Teams will consist of players in 4-team pool play ending with bracket play. Games will take place Tuesday and Thursdays on August 10, 12, 17, and 19 at 6p in our gymnasium with a tournament finish on Saturday, August 21st.
Dick and Joe Ness will play a variety of music, from standards to jazz to show tunes, on violin and guitar at New Ulm Public Library on August 18th at 12noon.
Create puppets with Imagination Station at Gorman Park on August 19th at 6pm. Watch a Gator Alley professional puppet show, then kids join Shari Ellinson and her gator alley friends on stage to create your own puppet shows!
Join the Greater Mankato Young Professionals for a BBQ in Spring Lake Park. The fun begins at 5:30 on August 26th with Lawn Games, BBQ from Famous Dave's, and great prize drawings until 8:00 pm. Bring your family and guests of YP's can also come to this event free as well.
According to the National Association of Realtors, existing home sales have slowed down over the last month. One reason is because of the expiration of the home buyer tax credit. NAR also says there are many swings in the market, with some weeks being up, and others down. The chief economist of National Association of Realtors stated “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months” .
A survey shows 43 percent of home purchases in June were by first time home buyers. Investors accounted for 13 percent. There is currently 8.5 months supply of homes on the market. “The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” NAR's chief economist stated.
The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and this will increase the numbers of existing home sales. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed.
Some Housing and Economic Indicators provided by National Association of Realtors are:
Existing-Home Median Price (May) - $179,400
Housing Affordability (May) - 162.0
There is always something happening in Mankato. Below are just a few things going on.
The Mankato Community Band
will perform at Wednesday in the Park on July 21 at Riverfront Park. The event
runs from 6 p.m. to 8 p.m. The event is FREE and open to the public. Food and beverages will be available for purchase.
Free Outdoor Movie Night is Friday night, July 23rd at New Riverfront
Park. Willie Wonka and The Chocolate Factory will be playing. Bring
blankets and lawn chairs. Popcorn and pop only 25 cents.
The first season of Mankato’s only urban outdoor market is held on Riverfront Drive. The City
Center Market Mankato is held every Saturday and Sunday throughout the summer. There are vendors of collectibles, antiques, art, and ethnic imports offering an eclectic
mix of products with a focus on unique, one-of-a-kind and hand-made items.
The 2nd annual Belgrade
Avenue Blues & Jazz Festival will be held Saturday, July 24, 2010 from 12
noon to 9:00 pm. The music, food, children's activities, artists and other attractions will be
set up on the street during the day.
The Blue Earth County Fair is coming July 29th for four days. Activities include bands in the Beer Garden nightly, antique farm equipment show, tractor-cade, truck & tractor pull, Buffington rodeo and compact car race. Visit Blue Earth County Fair's website for more information.
The 2010 Nicollet County Fair will be August 11th-15th and will also include many fun activities and rides. This fair is located in St. Peter. The FarmAmerica Fall Fair is September 11th in Waseca. Stroll through Peddlers Grove and Pioneer Tent City.
Fall harvest activities will be on display.
With more home buyers interested in eco-friendly
features, one way to give your home a competitive edge is to emphasize how 'green' it is. Take an energy audit then make some changes to boost the energy efficiency. Some recommended upgrades include:
- Use automatic light switches that use infrared and ultrasonic technologies.
- Living plants should be added throughout home to help enhance indoor air quality
- Install CFL's -The
little spiral-shaped bulbs known as compact fluorescents use less than a third
of the energy of regular bulbs and last ten times longer
- Turn down your hot water heater.Lowering
the temperature on yours from 140 to 120 degrees will reduce your water heating
costs by 6 to 10%
- Unplug unused chargers.Even
when they aren't charging anything, plugged-in cell phone, laptop and other
chargers continue to draw electricity.
- Install a programmable thermostat. It
allows much finer control over where the heating is set and always 'remembers'
to turn down the heat at night.
- Use low VOC paint. Conventional paints release volatile organic compounds that cause potentially dangerous indoor air pollution. Apply a fresh coat of one of the new, low or VOC-free paints
now readily available in great colors by major manufacturers.
Plug air leaks. Install weatherstripping and caulk to stop expensive drafts. Look for leaks around windows, doors, electrical outlets, plumbing penetrations,
and in the attic floor.
- Install low flow shower heads and faucet aerators to save resources without sacrificing water pressure.
- Check your insulation. Make sure that there are no areas in your attic floor with inadequate insulation. Even a small area with limited or no insulation, or insulation that has been
damaged or compressed, can significantly decrease the effectiveness of the
area's insulation.
These tips will help you get started. Most of free or very inexpensive but save money later. A few simple changes in your house can go a long way to combat both high energy
bills.
The state gained 5,600 jobs in May helping the unemployment rate to drop from
7.1% in April to 7% in May. Minnesota's new jobless rate is 2.7% points below
the U.S. rate of 9.7%. "Minnesota is experiencing signs that economic recovery
is progressing," said Dan McElroy, commissioner of the Minnesota Department of
Employment and Economic Development. "While it will take some time for
employment to return to pre-recession levels, I am encouraged to see job growth
for the second consecutive month."
And another positive statistic is the number of customers applying for mortgages jumped last week, signaling that
the market could be stabilizing after dropping off sharply last month. The
Mortgage Bankers Association reported that overall applications were up nearly
18% from a week earlier. Applications to refinance home loans were up 21% to
the highest level since May 2009. New mortgages taken out to purchase homes
increased for the first time in six weeks - rising 7%.
The Minnesota Department of Employment and Economic Development reports a rise in manufacturing employment for four consecutive months. The state lost more than 33,000 manufacturing jobs in 2009, but this
year has added 7,800 through the end of April.
More information from Brookstone Mortgage and Erika Kuhlmeyer Dragich.
What do home buyers need when taking out certain types of home loans?
Home Path - You need 3% down, no appraisal and no PMI - mortgage insurance.
203K Rehab/Renovation Loans (FHA) - You need 3.5% down.
203K Streamline (MINI)- Buyer receives $35K (less program costs & construction contingency reserves) to repair/remodel/renovate - can be used for appliances too. No structural repairs allowed (i.e. move/change load bearing walls).
203K Construction/Rehab- This is a real construction loan with draw schedules. Great opportunity to buy and personalize a new home with 1 fixed rate loan.
MHFA and City Living - 0%-3.5% down
USDA/RURAL - 0% down
VA (Veterans) - 0% down
Conventional - 5% down
Mortgage insurance companies are very selective on whom they insure with as little as 5% down and loan filed will be closely reviewed for risk assessment when making smaller downpayment.
Reverse Mortgage - HUD/FHA insured mortgage allowing Seniors to finance a home purchase. No payments are made on Reverse mortgage so the Senior’s cash flow (fixed income commonly) is retained. This program’s downpayment will vary depending on buyer’s age, purchase price/value of home; but would expect minimum of 20% down. A quick analysis can be run with buyers name, date of birth, property county, price & estimated value. The Senate approved a proposal to give buyers (who currently have contracts executed by 4/30/10) until 9/30/10 to complete their purchases. This is great news as many lenders are experiencing slowed underwriting turn times as buyers rush to complete their purchases by 6/30. In addition, this should help those in ‘short sale’ negotiations.
For more information contact me or Erika at erika@bmcmn.com
The following information was sent to me from Progressive Home Services - A Home Inspection Company. The information is helpful so wanted to pass along.
How is it possible to add more space to a home without the mess, noise and expense? Start by looking at your garden - the garden shed. For some homeowners an unused shed holds the promise of a separate work office, a bath spa, or maybe an artist's studio. And for others an unused garden shed is an excellent spot for gardening!
The best way to determine what an unused shed has to offer is to clear out any existing clutter. Often, sheds become the repository for broken lawn equipment, old furniture, and assorted small items. A shed can clean up very nicely and present a host of opportunities.
Most sheds have walls, a door, and roof but sometimes little else. To ensure your shed can stand up to a variety of weather conditions, it may be best to add insulation. An electrical system is needed to power lights, computer, radio, fan and other needs. Piping for electrical wires may need to be installed. The next step is installing, taping and painting drywall. Depending on the desired use for the shed, a water source might be necessary as well.
The information from Progressive is great, but what if you do not have a shed? Attic conversion is another way to go. However attics are designed for storage and not constant use to you will need to strengthen the joists and lay sub-floor. Basements are usually better choices than attics, if you have one. The floor rests on solid earth. However moisture can be a problem. This can be easily remedied however.
Tourtellotte pool is lifeguard staffed and features an
Olympic-sized pool with separate diving well and wading pool. The surrounding park facilities include picnic shelters
equipped with electricity, grills, playground equipment, tennis courts, sand
volleyball courts, and a softball diamond.
The seasonal swimming pass sales begin Monday, May 17. You can also purchase daily admission tickets or 10-punch passes. The prices are as follows:
Season Passes:
- Individual--$45
- Family of two--$85
- Each additional family member--$7.50
- Sitter add-on--$25
Daily:
General Admission: $2.25
Wading Pool*:$1, accompanying adult
$2.25
*Note: Admission to wading pool restricted to children ages 6 and
under.
Punch Passes:
All passes are sold at Mankato's Tourtellotte Swimming Pool (507) 387-7946.
The cost of a 10-punch special visit pass at the main pool is $20 and $8 for
a 10-punch pass at the wading pool.
The hours are as follows:
General swim: 1 p.m.-5 p.m. daily and 6 p.m.-8:20 p.m.
daily
Lap swim:: 12 p.m.-1 p.m and 5 p.m.-6 p.m. weekdays
Have a great summer!
As the days get warmer more people are spending time outside lighting up the grill. The following useful tips will help keep you and your family safe.
- Use grill at least 15 feet away from building.
- Supervise children when grills are in use.
- Wear snug-fitting, tightly woven short-sleeved clothing.
- If clothing catches fire: Stop, Drop, and Roll!
- Grilling on decks is prohibited in any apartment with more than two
units.
If you find you need help from the fire department however, the Mankato Fire Department is here for you.
Mankato residents are proud of the men and women employed by the local Fire Department. The department has a combination of full-time and volunteer firefighters. On the full-time side, commanders provide leadership and supervision in areas
such as incident command, fire prevention and education, investigations,
training and the maintenance of stations and equipment. The full-time
firefighters provide the expertise in training, inspections, investigations and
hazardous material responses. The volunteers provide the needed staffing,
primarily at night, to handle fire, medical and other emergency calls for
service.
• 3,782 sq. ft., 3 bath, 4 bdrm single story
-
MLS®
$439,900
Mankato Hilltop, Mankato
-
Location, Value, Upgrades! Tasteful, gorgeous with ever amenity you yearn for. Newly constructed with 9' hand textured ceilings, while house audio, heated tile in the large master bath complete with double vanities, whirlpool, and walk in shower. Master bed with large walk in closet and a lighted tray ceiling. Home office on the main floor with a stepped ceiling. There are two gas fireplaces, one on each level.
Property information
• 801 sq. ft., 1 bath, 2 bdrm single story - MLS® $84,700
Central Mankato, Mankato - Unique Studio apartment located in the heart of the E-District downtown. Currently Rented for the 2010-2011 school year. Rent is $700 per month, owner expenses are $792 per year. Unit has 2 parking spots included in rent. Tenants pay electric. (heat is electric) Impressive rental history, impressive cash flow 9% CAP on NET.
Property information