Short Sale vs. Foreclosure

If a financial hardship situation puts you in a position of not being able to remain in your home any longer, you have two options: a short sale or a foreclosure. As your Lake of the Ozarks mortgage lender, my hope is that you don't find yourself in either of these situations. However, sometimes things happen and you can't make your mortgage payments like you thought you would be able to. Let's take a look at each of these options, their differences and what these situations mean for you as a homeowner or prospective homeowner in the future.

Short Sales

A "short sale" in real estate refers to a real estate transaction where the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts. This can happen when you owe more on your loan than the home is worth and you need to sell it. You can only do a short sale if your lender approves it because they must agree to make less money than they're owed. To qualify for a short sale, you must prove financial hardship with documentation.  

Foreclosures 

A "foreclosure" is a property that has been taken over by the lending institution as a result of the mortgagor's failure to keep up on the mortgage payments. If you're in financial hardship situation and stop making your payments, a foreclosure will be the ultimate result. When you miss a payment it's called default. After a period of no payments, your lender will begin the foreclosure process. When this happens, the homeowner's rights to the property are forfeited. If the homeowner cannot pay off the outstanding debt or sell it via short sale, the home goes to a foreclosure auction. If the property does not sell at auction, it becomes the property of the lending institution.   

What Does It Mean For You? 

In either situation, your credit score will be affected and it could be harder to secure a mortgage loan in the future. A short sale will cause your credit score to drop as little as 50 points if you don't incur any late mortgage payments during the short sale process, or as much as 200 points if you do incur late payments. Getting a new home loan after a short sale can happen in as little as 2 years if you can put down 20 percent. In a foreclosure, your credit score can drop 200 to 400 points. A foreclosure hits your credit harder than a short sale because you have to accrue late mortgage payments on your way to foreclosure. It can take up to 7 years to get a new home loan after a foreclosure, but it can be significantly shorter if your hardship was beyond your control, like a job loss.

If you're worried about being able to make your mortgage payments in the future, give me a call at 573-7467211 to talk about your options. There's a possibility we might be able to refinance your home at the Lake of the Ozarks to get your payments lower before you run into the issue of not being able to pay. When it comes to your financing needs, I'm committed to working with you every step of the way!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

What is Negative Equity?

As you payoff your mortgage, you gain what is called home equity. Your home equity is the amount of your home that you actually own versus the amount that is financed. Unfortunately, that home equity amount isn't always positive. Your Lake of the Ozark mortgage lender wants to help you understand what negative equity is and how to deal with it.

Negative Equity

Your equity is ever changing, as your home's value fluctuates and as you pay down your mortgage loan. If your home's value drops below your outstanding loan balance, you end up with negative equity. Negative equity often occurs when a house is purchased with a mortgage and then the economy starts to slow or home prices start to drop. As of September 2015, the U.S. Negative Equity rate, the share of mortgaged homeowners that owe more on their home than it is worth, was at 13.4%. Understanding how these situations come about can help you make smart decisions when financing your home at the Lake of the Ozarks.

Causes of Negative Equity

Typically, a buyer will secure a home loan that is no more than 80% of the current value of the home being purchased. However, a number of factors can alter that loan to value ratio, sometimes making it exceed 100%. When this happens, the homeowner is said to have negative equity. The causes of negative home equity can either be the result of lending requirements that are too lenient or a change in the housing market. These causes of negative equity can include:

• Buying a home during a market peak, when prices are high and then dramatically drop
• Borrowing against the home with a home equity loan and then experiencing a decline in the market
• Securing a high-interest loan with minimal amounts applied towards loan principal
• Putting too minimal of a down payment on your home at the time of purchase

Problems That Come with Negative Equity

If you're wanting to sell your home, having a negative equity is a problem. Unless you're willing to take a loss and you have savings to pay the difference between what you owe and the value of your home, moving isn't going to be an option anytime soon. In addition, refinancing your home at the Lake of the Ozarks is most likely not an option, as most lenders will not let those homeowners with negative equity switch to a new mortgage deal.

Fortunately there are options for those homeowners that find themselves with negative equity, including government programs that offer homeowners some relief from this situation. If you think you may have landed yourself in a negative equity situation, contact the best mortgage lender at the Lake of the Ozarks. I'm here for all of your home financing needs and would be glad to answer any questions that you may have regarding a home loan at the Lake of the Ozarks.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Enjoy a Delicious Valentine's Day Dinner at the Lake!

Valentine's Day is this weekend and what better way to celebrate than with a romantic dinner? The Lake of the Ozarks area is filled with many wonderful fine dining establishments, perfect for a Valentine's Day Dinner! The best part is that your favorite Lake of the Ozarks mortgage lender has found the best dinner deals happening this weekend! So pick up the phone and make your reservations at the beautiful Lake of the Ozarks today!

H. Toad's Valentine's Day Dinner

Indulge your sweetheart's senses this year by taking them to a decadent 4 course dinner at H. Toad's Bar & Grill. Dinner will be served February 13 from 5-9 PM. The menu includes a choice of Steak Neptune, Orange Dusted Halibut or Pan-Seared Duck Breast as the entree. Let your taste buds sizzle by viewing the entire menu here. Reserve your spot now by calling 573-365-5620.

Valentine's Day Dinner at The Trophy Room 

Spend Valentine's Day at The Trophy Room at Old Kinderhook! They will be handing out long stem roses to the ladies and offering 3 shareable menu features February 12th through 14th! Enjoy live music Friday, Saturday & Sunday.  Reservations are recommended - call 573-317-4314.

Valentine's Day Dinner at Seven Springs Winery

Seven Springs Winery is offering a Valentine's Day dinner on February 13 from 5-8 PM. The menu includes: a Caesar Salad, 10 oz. KC Strip Steak, 6 oz. Lobster Tail, Montego Bay Vegetable Medley, Garlic Mashed Potatoes and a Dark Chocolate Brownie covered in Spiced Raspberry Sauce. Tickets are $35 per person and reservations are recommended - call 573-317-0100 to reserve your spot for Valentine's Day weekend today!

JJ's at the Copper Pot's Valentine's Day Dinner

JJ's will be opening back up just in time for Valentine's Day weekend! Thursday through Sunday they will be offering a steak dinner for two. Reserve your table either online or by calling 573-374-8077.

Valentine's Day Dinner at The Lodge of Four Seasons

Enjoy dinner at HK's Restaurant, where you will be savoring a 4 course meal with your choice of the main entree being: Filet & Shrimp Dou, Chicken Marsala or Lemon Sole Roulade. Their Valentine's Day menu will be served February 13 & 14. They will also have live music on Saturday from 7-10 PM. Reservations are strongly recommended - call 888-265-5500 today. 

Happy Valentine's Day from your favorite Lake of the Ozarks mortgage lender! How would you like to spend every holiday at the beautiful Lake of the Ozarks? You can make that dream a reality by purchasing a second home at the Lake of the Ozarks. When you own a home here, you can come visit anytime you want! For all your Lake of the Ozarks mortgage needs, give me a call at 573-746-7211. 

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

3 Things to Consider Before Refinancing Your Home

Have you considered refinancing your home? While it can be a great option for some people, it may not be the right choice for everyone. Here are a few things you'll want to consider before deciding if refinancing at the Lake of the Ozarks is the right move for you.

1. Reason for Refinancing

The main reason people choose to refinance their homes is to get a better deal. This could be in the form of a lower interest rate, lower monthly payments, or a shorter/longer loan period. You'll need to consider your personal reasons for wanting to refinance. Maybe it's to free up some cash to pay off higher interest loans such as a car payment. What goals do you want to accomplish through the refinancing process? Be sure to examine the pros and cons of refinancing your home before taking any action. You need to see if your timing and circumstances are right for refinancing. If your credit score has improved or your income has changed, you might be ready for a refinance.

2. Current Interest Rates

Interest rates are one of the main factors determining the cost of your mortgage at the Lake of the Ozarks. On average, a borrower that refinances their home reduces their interest rate by about 1.5 percentage points. That may not sound like much, but over the life of the loan it adds up. Keep in mind that published interest rates are only a guideline, as interest rates differ for each borrowers individual situation. Your credit score and intended loan type will influence the rate available to you.

3. Costs and Penalties Involved

Be careful that penalties don't eat up all that you're saving with your refinance. Some financial institutions charge hefty fees for paying off your loan early. These fees can make it unfeasible to refinance your home at the Lake of the Ozarks. Refinanced loans often incur "moving costs" such as legal fees, disbursement costs, new valuation costs and stamp duty. Make sure to check the numbers to see if you're actually saving money before you decide to go through with the refinance. You want your long-term savings with lower payments to outweigh the immediate costs of refinancing.

For all of your Lake of the Ozarks home financing needs, give me a call at 573-746-7211. I'm committed to working with you every step of they way. As your Lake of the Ozarks mortgage lender, I'll discuss the best options for your unique situation, offer competitive interest rates and back it up with the first class service you deserve.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.