At some times it can be expensive to simply maintain the biggest asset most people will ever own: their homes. Keeping this fact in mind, here is a list of ways to increase your home’s value without breaking the bank.

• Hiring an home inspector can be the most cost-effective thing you ever do. This is true if they find a small problem that could grow into something much bigger down the line, such as a termite infestation or a roof or water leak.
• Tremendous value is added by simply painting a room, upgrading fixtures.
• Energy efficient homes that feature items such as special windows and/or programmable thermostats, save you money and are a marketable asset if you do need to sell.
• Landscaping improvements in the form of large shade trees make homes more desirable. They can also cut your cooling costs up to 40%.
• Improve your home’s air quality by replacing old carpeting, or removing it entirely if you are lucky enough to have hardwood flooring underneath.
• By adding a small luxury item such as a water filtration system, you are adding value to your home and saving yourself money since you will no longer need bottled water.
• Replace old fixtures such as an old ceiling fan for a newer, more updated-looking model. It will make your home more pleasant on hot days, and will appeal to buyers if you need to sell.
• Speak with Bonnie Mullinax, your local Bartow/Cobb County realtor, or an interior designer to check out your home for needed improvements.

In December of 2007 Congress signed into law the Mortgage Forgiveness Debt Relief Act. Under regular circumstances, when a lender chooses to forgive all or part of a borrower’s debt, the forgiven amount is considered income and the borrower is liable to be taxed. This law offers relief to the homeowner in that it extends relief for three years, covering debts discharged through calendar year 2012. Amendments have been made to remove tax liability and allow the borrower and lender to work together to find a common and beneficial solution for both parties. This debt relief is limited to primary residences only and the amount of forgiven mortgage debt allowed to be excluded from income tax is $2 million per year.

For more information about the Mortgage Forgiveness Debt Relief Act go to the I.R.S. website.

Considering a short sale can be a daunting task if you are not armed with all of the necessary information regarding this type of transaction. Following are additional mistakes or problems that can be avoided if you know what to look for.

• Time: There never seems to be enough of it when conducting a short sale. Bonnie Mullinax, your local Bartow County Keller Williams Realty agent, understands local foreclosure laws and will be able to provide you with an estimated timeline on the possible sale of your home. Also, be sure that you or Bonnie Mullinax communicate effectively with your lender so that they begin to stall a foreclosure by getting more time to negotiate a short sale. Always provide Bonnie with accurate information as to how many payments you may have missed and any correspondence you have from your lender.
• You must submit the deal properly: Following the directions that you receive for submission is imperative. If you are asked to fax your file, then fax the file and send a hard copy in the mail. If they ask for two copies, send two, and so on. If you have a contract and have gathered all of your information, the last thing you want is for no one to see it and the deal falls apart.
• The buyer’s offer is too low: A short sale is not a fire sale! A lender still will only approve a deal that is more attractive to them than a foreclosure. Make sure you present only the most properly negotiated offers.
• The buyer’s contract is not strong enough: You may find yourself with offers from unqualified buyers. Don’t forget to ask for verification from a buyer that they have been pre approved for financing.

Considering a short sale can be a daunting task because it is a bit more complicated than a traditional home sale. Knowing what some of the common short sale mistakes are and their solutions can be very helpful for a successful outcome. Here are some of the most common mistakes made with this type of transaction, and their solutions:

• The property is not priced correctly: Be sure that your agent takes you through a detailed listing price strategy so you know exactly where your home should be priced due to its current condition, the other current sales in your area, and how much time you have left to sell.

Today many people in the Bartow County and surrounding areas are interested in Short Sales as a way to avoid Foreclosure. The definition of the short sale process is when the lender of a residential property allows the property to be sold for less than the amount due on the mortgage loan.

The benefit of the short sale process is to allow the seller to avoid credit report damage associated with a foreclosure. A foreclosure can stay on your credit report for up to 10 years and can take an emotional and financial toll on you and your family.

If you are interested in knowing more about a somewhat complicated short sale transaction, here are the three very uncomplicated things lenders look for when qualifying a short sale:

• Financial Hardship:  This is defined as a verifiable reason that has or will cause you to miss a payment. Examples that qualify are mortgage payment adjustment, a job loss, too much debt or a business failure.
• Monthly Shortfall: Lenders want to see that you cannot afford to pay your mortgage. You will be required to provide your agent a financial worksheet that demonstrates this. The shortfall equation is simple. Total Monthly Income – Total Monthly Expense = Monthly Shortfall.
• Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.

Because of the documents required, the short sale process can be lengthy. But if done correctly, it can benefit all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report, and the buyer hopefully got a good deal on a property.For more information about Short Sales see About.com.