Cheat Q&A: Facing foreclosure after a divorce:
A listener recently went through a divorce and is now facing a potential foreclosure on an investment property – (We’ll leave it at that in the interest of protecting the ID of the listener). So let’s go through the possible outcomes here. The property has a mortgage in the name of both parties.
The worst outcome that can occur if the property is foreclosed:
- You'll have credit impairment for 7 sevens years
- You'll have your credit permanently reflect the foreclosure after 7 years (though it will no longer impact your score or automatically disqualify you for certain lines of credit)
- You'll not be able to obtain financing for a mortgage for a minimum of four years after the foreclosure redemption date
- The bank could pursue you for the total deficiency plus legal expenses for up to 5 years after the foreclosure redemption date
A short-sale would be the better case scenario. A successful short-sale is a far better solution than a foreclosure - especially if you are either granted a wavier of deficiency and/or if you can negotiate a settlement amount as part of the short sale so there isn't the threat hanging over your head for several years.
I'd recommend speaking to a real-estate attorney. Having been through a divorce (and having made a series of awful real-estate and business related decisions for about a year after the divorce culminating in a business bankruptcy), ensure your getting good information and making sound decisions that don’t leave you with additional distress financially and otherwise.
If you have a topic or question you’d like me to address email me: firstname.lastname@example.org
Florida's job growth slowed considerably in July - inside the numbers:
Bottom Line: Last week we received the ADP private sector payroll report that showed 218,000 jobs being created. So how did we fare in Florida?
Florida added 8,740 jobs in July.
Highlights of certain industries:
- Natural Resources/Mining and Construction: 60
- Manufacturing: - 40
- Professional and Business Services: 100
- Trade, Transportation and Utilities: 4,420
So to put it a different way:
- Florida accounted for 4% of the job growth and we account for 6.1% of the population
It’s the first time this year and just the second time in the past two years that our monthly job growth underperformed the average rest of the country. Hopefully it was just a one month occurrence and not part of a bigger economic change within our state that would indicate slowing growth in our state.
One of the biggest banks is making it easier to get financed for a jumbo mortgage:
Bottom Line: Jumbo mortgages are those which are originated for more than $417,000 and aren’t backed by Fannie Mae and Freddie Mac. As a result the qualifications for those loans are generally a bit more strict. For example, some lenders will underwrite mortgages for people with credit scores as low as 620 (most begin at 640) however the baseline with most lenders for a jumbo mortgages look for a credit score of at least 720 (in addition to the income and down payment requirements). That’s easing a bit with one of the three biggest banks.
- Wells Fargo is dropping their minimum credit score requirement for a jumbo mortgage to 700 from 720
It may not seem like a huge change but it’s estimated that an additional 50,000 or so mortgages would have been originated by them this year if that standard had been in place since January. It’s safe for Wells to ease standards just a bit as default rates for mortgages of all sizes that have been originated since 2010 are very low and the mortgage origination market has been extremely slow the past few months. Perhaps other lenders will look to do something similar as well.
Amazon's same day delivery hits the East Coast but not SFL... Yet:
Bottom Line: Naturally Amazon’s same day delivery service started on the West Coast (where they’re headquartered). They’ve been working towards the east & as of yesterday have crossed the country. Amazon.com has added six new metros to their same day delivery system. They are:
- Baltimore, Dallas, Indianapolis, New York City, Philadelphia & WashingtonD.C.
While the same day option isn’t available in South Florida yet, one can imagine that it will be within the next year. As for how it works:
- You have to subscribe the annual Amazon Prime Service ($99)
- You have to place your order prior to noon
- There is an additional $5.99 fee attached to the same day orders
Despite the additional $6 shipping charge I believe this will be a hit. I’d encourage local businesses to figure out a way to participate, If possible, by selling through Amazon.com. This takes the biggest remaining advantage, the need to have an item or items today – out of the equation. More to come & I’ll keep you posted as to Amazon’s same day move into Florida.
Rather than how you feel about the ACA, What has the impact of the ACA on your healthcare been so far? 1st look:
Bottom Line: We all have our opinions on the ACA (aka Obamacare). We know that public option still remains decidedly negative. In an average of all current national polls:
- 40% approve of the ACA vs. 56% who don’t
But what about the actual impact on your healthcare this year so far? That’s what Bankrate.com studied. Here’s how we responded:
- 37% say that it’s had a negative impact so far this year on their healthcare
- 16% say that it’s had a positive impact
So clearly if one does have an experience they attach to the ACA it’s more likely to be negative by a factor of greater than two to one. It is noteworthy that the biggest group of Americans are those who don’t see it as having had an impact on their care at all (47%).