Mortgage Forgiveness: Expiring Soon!

Mortgage Forgiveness Deb Act Expiring Soon-1

 

On the fence considering a short sale? Well, the Mortgage Forgiveness Debt Relief Act of 2007, one of the big incentives to pursuing a short sale, expires on December 31, 2012.

Normally, when a lender forgives a debt — that is, relieves the borrower from having to pay it back — the amount of the debt is taxable income to the borrower. Thus, a homeowner who had $100,000 in mortgage debt forgiven through a short sale would have to pay income tax on that $100,000, as an example. (ie. you owe $500,000 on your loan, but the home is worth only 400,000, the difference being $100,000).

Fortunately, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude from your taxable income up to $2 million of debt forgiven on your principal residence from 2007 through 2012. This means you don’t have to pay income tax on the forgiven debt.

This all ends on December 31, 2012.

[UPDATE 1/3/13: this Debt Relief Act has been extended!]

If you would like to know how this affects your personal situation (as everyone’s scenario is unique), just fill-out the form on this page: Click Here. Or give me a call at 510-270-2201.

Two Short Sale Myths Debunked

Two Short Sale Myths

 

Do you need to miss a mortgage payment to qualify for a short sale? Wouldn’t the lender rather foreclose on your property rather than approve a short sale?

Watch and find out the answers!

[Video] What it Means to Be “Upside Down”


Additionally, I have posted a number of detailed reports on your options to avoid foreclosure here: www.UnderWaterHomeHelp.com.

[Video] Bankruptcy 101

 

Additionally, I have posted a number of detailed reports on your options to avoid foreclosure here: www.UnderWaterHomeHelp.com.

[Video] Deficiency Judgement Explained

Additionally, I have posted a number of detailed reports on your options to avoid foreclosure here: www.UnderWaterHomeHelp.com.

[VIDEO] Literally Under Water

 

Video of a guy LITERALLY under water writing out a message that says “Is your home under water? www.UnderWaterHomeHelp.com

[Video] What is a Short Sale?

This video describes a short sale, a real estate transaction where the bank will accept less than what is owed to them when a home is sold.

If you or someone you know is considering this option, but would like to know more about it, click here: www.UnderWaterHomeHelp.com.

Handling the Stress of an Unaffordable Mortgage Payment

endofyourrope

Whenever I research the latest foreclosure and distressed property statistics, the sheer number of Americans facing the stress of losing their homes amazes me.  It is my goal to help as many homeowners I can either stay in their homes or relieve the burden of their mortgages. Knowing that there are so many that need my help is a driving force for me to continue doing what I do.

In fact, I just released another report that I’ve made available on my website today. It explains the CDPE designation and lists 10 options that homeowners can take advantage of to relieve the stress that comes with owing their mortgage lenders more money than they can afford to pay.

The report also draws a contrast between short sales and foreclosures. Unfortunately, there’s a growing trend of “strategic defaulters” who think it’s smart to let their home go into foreclosure. As any one who follows this blog knows, there is nothing strategic about foreclosure; it’s one of the most long-lasting, negative financial challenges you can go through.

I’m excited about acting as a resource for more homeowners who have questions about what they should do. As always, if you know homeowners who may need my help, have them contact me immediately! Together, we can put them back on the path to financial stability.

Click Here to get your Free Report.

Cold Hard Cash For Your Short Sale

Cold Hard Cash

Cold Hard Cash

[google1]As weird as it sounds, banks and loan-servicers are increasing their incentives to home owners in lieu of a successful short sale!

Last year, the U.S. Treasury Department launched the Home Affordable Foreclosure Alternative Program otherwise known as HAFA. Here’s a quick VIDEO overview of it. Part of this program provides the borrower with a $3,000 cash incentive.

$3,000 is ok, but it’s peanuts compared to what some lenders are providing now, independent of HAFA altogether.

For example, CitiMortgage is now paying on average, $12,000 to borrowers/homeowners after completing a short sale. JP Morgan / Chase bank is also offering significant incentives to borrowers to the tune of $20-$30,000 after a successful close! Wells Fargo is offering a similar program in some cases.

One of the keys to a successful short sale, just like modifications, is the timely collection of financial documents. Regulators helped move the process along with guideline changes to programs like the HAFA initiative, which lessened the amount of documents required.

Anyone half-way familiar with the Short Sale process will lament about the long waiting period for approval. Well, Wachovia/Wells Fargo have taken this bull by the horns and offer an extremely streamlined approval program. If your loan is one of their portfolio loans (meaning that they own your loan and didn’t sell or transfer it to another investor); they can approve the whole package in less than 10 days. PLUS, they don’t even care what your hardship is, no documentation needed.

Want to know if your Wells Fargo loan is a portfolio loan and qualifies for the “no-doc” hardship streamlined short sale approval program? Just contact me with your loan#, and I’ll check it out for you.

Bottom line
(Take this next line with a huge grain of salt) It’s never been easier than now to complete a short sale. However, it’s never been more important than ever to work with an agent that is experienced with the process! This fact cannot be stressed more. Believe me, I know what I’m talking about. I’ve had to ‘clean-up’ a number of other botched and bobbled short sales. Save yourself alot of time and trouble and choose your agent wisely. [OK, off soapbox now.]

Feeling Trapped by your Mortgage?

Feeling Trapped by your Mortgage?

Feeling Trapped by your Mortgage?[google1]Break Free From Unaffordable Mortgage Payments!

A recent study in Nevada (a state that holds the nation’s highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found the 1 in 4 homeowners chose to “strategically default,” or allow their homes to be foreclosed upon on purpose!

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they’d soon realize that there’s nothing ‘strategic’ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.

The Latest Bay Area Real Estate Sales Statistics

The Latest Bay Area Real Estate Sales Statistics (Source: DataQuick, www.DQNews.com)

Education is key.

The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I’ve seen this firsthand.

I can help with the education part—it’s up to you to contact me!

In the meantime, you can download my report on this topic HERE.

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