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What is a Short Sale in Real Estate? A Short sell is selling a home for less than the loan balance on what you owe the bank for the home. The bank must agree to the short sale of the home. For example, the buyer goes to the bank to tell them the home was purchased for $200,000 and the down payment was $50,000. So there's a remaining loan balance of $150,000 but the market is willing to pay $120,000 for the home.  The individual looking to short sale the home tells them their hardship maybe a job loss or loss or spouse that has reduced income. The bank may be open to forgiving the remaining balance of $30,000 after the short sell. Borrowee should seek to not have this reported on their credit and may or not have to pay property tax on the remaining balance if it is forgiven. What is a Foreclosure property? When a homeowner falls behind on their mortgage payment and cannot reach an agreement with the bank through a Short Sell, Loan Modification or loss mitigation...

Equity is a term that is used in many facets of business such as Accounting, Shareholders positions, and Real Estate. We're going to focus on Equity as it pertains to Real Estate. First, let's unravel where Equity derives from. History shows that Equity as we know it derives back to Old French word Equite. It  originally meant the quality of being equal or fair, used mainly in the context when dealing with others, according to (etmology online)." In a way, this is similar to the description of Equity as pertains to homeownership. The market value of the home  minus how much is owed to the financial institution for the purchase of the home. About 14% of homes in Sacramento, California are purchased with CASH . And CASH is King. The more cash you can bring to make an offer on a home can heighten the chance you’ll  acquire the asset. Similar to how a business can go up and down in value so can the Real Estate market (Less volatile than the stock market). Many factors ...

What is a Mortgage? A Mortgage is a loan that is used to finance a home from a Financial institution. Why are mortgages in place? Mortgages are in place to ensure that the financial institution will be repaid for the home loan. Mortgages are a security instrument used to hold the borrower accountable for the home loan. The title of the home will go to the bank until the mortgage is paid off. When borrowee has repaid mortgage the bank will issue a deed of reconveyance . Transferring the title to the homeowner. For example, Mark and Lisa just got married. They want to buy their First home, YAY! Together they have saved $12,250. Approximately, 3.5% of the total purchase price. The cost of the home is $337,750. The difference between the down payment and the total cost of the home is $337,750. This amount is the Mortgage. The couple will have to pay the financial institution back each month (principal) plus interest. Let's say the interest on the amount the bank loan...

Hello! If you haven't heard the Feds cut interest rates to 0-0.25% down from where it previously was 1-1.25%. Let's unravel what's going on in the economy and what that means for folks like me and you. Why are the Feds cutting rates? When the Federal reserve Lowers interest rates they are encouraging economic growth in both the stock market and loans assumed. This makes sense with the current epidemic that seems to forecast regulation and uncertainty. What does this mean for the money in my Bank Account? The money you and I have in the bank will earn even less than it already is due to interest rate cuts. If interest rates go to negative like the president has proposed saver can actually lose money for keeping their money liquid. How will it affect my credit card? If you have a fixed credit card rate you shouldn't encounter many changes at all. If you have a variable rate and say the rates have been cut then your interest payment should follow. Can I refinan...

Yesterday, I visited my Bank. Bank of America, I thought I had a new savings opportunity that the teller mentioned to me the week before. We were both wrong. Instead, I was gifted with the opportunity to learn about CDs. Certificate Deposits are best used when someone has a lump sum of cash that they don't want to be able to access for a period of time, in return for a sure return . The rate that I was offered was about 1.6% on the amount required (CDs can require $500-$250,000). The more you have the better your guaranteed return. Unlike stock markets you don't have to worry about the fluctuations in the market. Yes, the extremely gifted and talented can 4/10 times assure themselves a better return that says 1% but what I've learned is that passive safe returns can allow the individual to put their focus elsewhere while growing their base wealth.  I would recommend educating yourself more on Certificate deposits. Instead of having savings account that you slowly de...

Through my own life experiences I've come to realize that a person's Paradigm has everything to do with the outcome of their future. Lets first gain an understanding of what a paradigm is. A person's paradigm is the lense that they see the world through.  Imagine if my name was Sam. I've been condition to believe that everyone with big ears were mean, greedy and decieving people. Not only do people that fit this description standout to you now because our Reticular activating system will spot them and place the appropriate stigma on them. In effect as soon as Sam see's someone with big ears, my engery towards them shifts to a state of defense. Maybe, I'm insecure of expressing myself, so I speak less or maybe I speak with a lower tone or in a way that isn't true to my nature. Many times we don't even notice it or better yet we hope the other person doesn't notice it. The truth is everyone notices and feels your energy when encountering you. Thi...

In America, one of the surest ways to build wealth is through homeownership. You may have heard that more millionaires are created by owning real estate than in any other investment vehicle. Here's why. Correlation between Wealth and Homeownership - People who have a steady job (2 years of employment) and at least a credit score of at least  660  (credit programs may vary from time to time) would be eligible for the benefits of homeownership which are: a.) A mortgage which provides financial stability for a family. For example, when a downturn happens in the economy jobs are a loss. Those who own their homes are more likely to be able to use their homes to weather the financial storm. Ex.) A car breaks down, a family medical problem occurs or you want to send your kids to college (potentially saving them hundreds of thousands of dollars). b.) Homeownership appreciates on an average annually at a rate of 3-5% . In most cases, 20% down in a decent location with...