Posts Tagged ‘mortgage forgiveness act’

We think it should get extended for the second time, but we can’t say for sure.

Here’s the link to the IRS website is case you aren’t exactly sure what it is.

Are you in a home now that is upside down in value?  Have you been “on the fence” about short selling or foreclosing and don’t know which would be best &/or when?

In 2007, it was one of the last things Bush signed and it blew open the doors for Short Sales because before then people had to pay taxes on the “Phantom Income” they received from their creditors (IRS Form 1099 C). 

Until the end of this year, it’s still in effect. 

We do expect it will be extended again, but probably not until the last hour like in 2010 when President Obama had extended it for another 2 years.

We do expect it will cause delays in the last half of this year for short sales in general because of the “rush” of people who will want to short sell their home they are upside down in before it’s they think it’s too late.

We do think it’s a good idea to talk to someone now just in case it doesn’t get extended. But again, we do feel strongly that it should.

Please call at 480-696-5800 OR Click here and get started online if you think you are ready to explore your short sale options.

Thanks to the Mortgage Forgiveness Act of 2007, Signed by Bush (Set to expire end of 2012)- SHORT SALES EXPLODED across the Nation as we saw home value plummet after 2006.  Long Story short, until then, the Phantom Income written off by the banks after a Foreclosure or Short Sale was considered taxable income. Today (for now), the Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. (See link for more details) We do expect a rush towards the second half of this year on Short Sales if the current administration in office does not extend the Act; which could cause even more delays in the Short Sale process due the the increased volumes the banks may be dealing with.  But with that said…

Nothing gives us more satisfaction than being able to help a family out from under a home they are upside down on and can not afford any longer, into their next home.  With today’s crazy low interest rates and sales prices, now really is the time to buy.  It’s usually much more affordable than renting and the key is the right counseling up front so that sooner than later, you too can be back in the buyer market again after either a Short Sale or Foreclosure.

Some can buy a “Home Again” right away, some take 2-3 years for their credit to re-coup enough in order to do so.  We partner with Ryan Nelson of Academy Mortgage right up front at time of Short Sale application so we can game plan the right solution for you and your family right from the beginning of the Short Sale process.  This helps to ensure we get you into your own “home again” as soon as possible.

Please call our office at 480-243-4242 to get started or Click HERE

Seems the whole world at the end of any given year going into the next makes New Years’ Resolutions and Goals of things they’d like to do in the following year. 

For me, to be a better Mom and Wife and take better care of my health… pretty boring stuff- somewhat the norm- I do also want to buy a home again myself as my own waiting period of 3 years after a Short Sale or Foreclosure is coming around already and I figured I probably wasn’t the only one.  Since 2007, with the help from my team, we’ve helped over 300 families either Short Sale their home OR buy a home and we’d love to do the very same for you or someone you know that may need our help. If you are one of our past clients, the timing may be right for you this year to buy again too?

IF SHORT SALE is something you’ve been putting off- PLEASE DO NOT put off any longer- as it stands now, The MORTGAGE FOREGIVENESS ACT OF 2007 signed by Bush is set to expire at the end of this year.  Short sales can take 3-6 months on average.  If this does not get extended soon, I predict that we are going to have a rush of Short Sales towards the second half of this year which may cause additional “traffic jams” with the lenders. Some folks trying to do a Short Sale in 2012 may miss the boat entirely for the forgiveness of the “Phantom Income” that the banks issue via 1099s at the end of each year from their losses on distressed loans. DON’T let this happen to you or someone you know! Click Here to get started with the Short Sale Process

On the flip side, it’s never been a better time to buy- RATES are @ 4% and sales prices lower than I’ve seen in most of my nearly 20 year career in Real Estate.  Click Here to see the in depth Power Point Presentation from Mike Orr of the Cromford Report with very interesting statistics on our current market and what it’s done the last couple of years.

Either way- we are here to serve! Please feel free to call us anytime at 480-243-4242 for help achieving your Real Estate Goals!