Thursday, February 9, 2012
Short Sales 4 Success: Mortgage Relief Deal has been struck as Hold out S...
Short Sales 4 Success: Mortgage Relief Deal has been struck as Hold out S...: Well it is good news in recovery for homeowners across the nation. The President gave a speech today stating how congress has negotiated a ...
Mortgage Relief Deal has been struck as Hold out States Join in
Well it is good news in recovery for homeowners across the nation. The President gave a speech today stating how congress has negotiated a 25 Billion dollar deal to help homeowners affected by the housing crash and illegal foreclosure practices that took place.
Now some homeowners will receive a monthly stimulus that can help reduce their debt and increase thier equity in their home again. It is a start to the housing market crises, BUT it does not fix much for everyone that has a home across America. The reason why is that first, not all states participated. Oklahoma did not sign this agreement and none of the Government backed loans like FHA, Fannie Mae or Freddie Mac are included in the program, which means that it could be less than 1/3 of all home loans that would qualify for the program.
Here is a money break down on how it would be allocated:
Money breakdown Under the terms of the agreement, the servicers are required to collectively dedicate $20 billion toward various forms of financial relief to borrowers. At least $10 billion will go toward reducing the principal on loans for borrowers who, as of the date of the settlement, are either delinquent or at imminent risk of default and owe more on their mortgages than their homes are worth.
At least $3 billion will go toward refinancing loans for borrowers who are current on their mortgages but who owe more on their mortgage than their homes are worth. Borrowers who meet basic criteria will be eligible for the refinancing, which will reduce interest rates for borrowers who are currently paying much higher rates or whose adjustable rate mortgages are due to soon rise to much higher rates.
Up to $7 billion will go towards other forms of relief, including forbearance of principal for unemployed borrowers, anti-blight programs, short sales and transitional assistance, benefits for service members who are forced to sell their home at a loss as a result of a Permanent Change in Station order, and other programs.
Because servicers will receive only partial credit for every dollar spent on some of the required activities, the settlement will provide direct benefits to borrowers in excess of $20 billion.
The Office of the Comptroller of the Currency also said on Thursday that Bank of America, Citigroup, JPMorgan and Wells Fargo have agreed to pay a penalty of $394 million as part of a settlement they reached in April 2011 with regulators over foreclosure abuses. The banks can meet the terms of the penalty through payments they make as part of the larger settlement with the state attorneys general and the Justice Department the OCC said. (Reuters and the Associated Press contributed to this article)
Thank you for staying in touch with Short Sales4U blog for today. Remember to visit us at www.shortsales4u.com anytime!
Now some homeowners will receive a monthly stimulus that can help reduce their debt and increase thier equity in their home again. It is a start to the housing market crises, BUT it does not fix much for everyone that has a home across America. The reason why is that first, not all states participated. Oklahoma did not sign this agreement and none of the Government backed loans like FHA, Fannie Mae or Freddie Mac are included in the program, which means that it could be less than 1/3 of all home loans that would qualify for the program.
Here is a money break down on how it would be allocated:
Money breakdown Under the terms of the agreement, the servicers are required to collectively dedicate $20 billion toward various forms of financial relief to borrowers. At least $10 billion will go toward reducing the principal on loans for borrowers who, as of the date of the settlement, are either delinquent or at imminent risk of default and owe more on their mortgages than their homes are worth.
At least $3 billion will go toward refinancing loans for borrowers who are current on their mortgages but who owe more on their mortgage than their homes are worth. Borrowers who meet basic criteria will be eligible for the refinancing, which will reduce interest rates for borrowers who are currently paying much higher rates or whose adjustable rate mortgages are due to soon rise to much higher rates.
Up to $7 billion will go towards other forms of relief, including forbearance of principal for unemployed borrowers, anti-blight programs, short sales and transitional assistance, benefits for service members who are forced to sell their home at a loss as a result of a Permanent Change in Station order, and other programs.
Because servicers will receive only partial credit for every dollar spent on some of the required activities, the settlement will provide direct benefits to borrowers in excess of $20 billion.
The Office of the Comptroller of the Currency also said on Thursday that Bank of America, Citigroup, JPMorgan and Wells Fargo have agreed to pay a penalty of $394 million as part of a settlement they reached in April 2011 with regulators over foreclosure abuses. The banks can meet the terms of the penalty through payments they make as part of the larger settlement with the state attorneys general and the Justice Department the OCC said. (Reuters and the Associated Press contributed to this article)
Thank you for staying in touch with Short Sales4U blog for today. Remember to visit us at www.shortsales4u.com anytime!
Wednesday, February 8, 2012
Short Sales 4 Success: Short Sales 4 Success: 2012 mortgage debt relief a...
Short Sales 4 Success: Short Sales 4 Success: 2012 mortgage debt relief a...: Short Sales 4 Success: 2012 mortgage debt relief act is expiring this year!
Short Sales 4 Success: Short Sales 4 Success: 2012 mortgage debt relief a...
Short Sales 4 Success: Short Sales 4 Success: 2012 mortgage debt relief a...: Short Sales 4 Success: 2012 mortgage debt relief act is expiring this year!
Short Sales 4 Success: Short Sales 4 Success: New Ways for homeowners to ...
Short Sales 4 Success: Short Sales 4 Success: New Ways for homeowners to ...: Short Sales 4 Success: New Ways for homeowners to receive money at closing for a short sale !
Short Sales 4 Success: Rumor Say's!
Short Sales 4 Success: Rumor Say's!: I cannot tell you how many times a day or week that an agent will call me and say, I heard a rumor about what short sales are or aren't all...
Rumor Say's!
I cannot tell you how many times a day or week that an agent will call me and say, I heard a rumor about what short sales are or aren't allowing. Today it was a homeowner who said "I heard that the banks aren't allowing short sales at all anymore" I said, Whoaah, I mean really? I have been doing short sales for 18 years. since before they were popular and if a homeowner owes more than what their home is worth and the NEED to sell their home because of a personal or financial hardship that they can prove, well, I am sorry folks, if they want to sell their home, no one can tell them that they cannot!! And that is called a short sale :)
Do not believe every little rumor that comes across your table. If you do, you will become more like a "worry wort", than a proactive, independent thinker who can direct and lead your clients to successful transactions.
Being able to demonstrate the ability to do research about what is not just concerning to you, but also what is concerning to your clients needs to be the benefit for everyone you know so that your sphere on influence is not only able to count on you, but they will know that you are the most capable agent for their needs.
Remember to go to www.shortsales4u.com for more information or see us on facebook!
Tuesday, February 7, 2012
2012 mortgage debt relief act is expiring this year!
How i love when Short Sales4U network of agents are on top of news that makes a difference to all!
One of my top producers at Century 21 in Rancho Cucamonga,, Ron Gent- sent me a note about this tax bill that expires this year. This is a big deal since this is a debt forgiveness tax code that can exclude up to 2 million dollars of debt on your personal residence! Read the article below by a CPA in California :
Short Sellers motivated by " IRS Tax Consequences" to close escrow by Dec. 31
Hello Agents
With short sales accounting for over half of all listings (approx.) most agents have experienced a certain frustration because of some homeowner's/ seller's "hidden agendas".
Many homeowners simply use the short sale process to stay in the home for as long as possible. That's understandable...losing a home is traumatic.
The impact for you.. as an agent (both selling and listing) is spending time, money and emotional energy trying to close the sale...when the seller has no intention of following thru with the sale.
(Note...it's almost as frustrating ...for your loan officer).
These listings /sellers can usually be identified by the terms and comments in the MLS.
Such as:
a) No lockbox or sign
b) Shown by appointment only
c) A Ridiculously high purchase price
Note...if the seller is considering bankruptcy (and assuming they qualify) the transaction probably will not "close" because the home owner can also discharge the debt with the BK filing.
Now you may have a "hammer" to close these transactions!
The Mortgage Tax Relief Act ...eliminating mortgage debt forgivenessexpires Dec. 31, 2012.
But home owners will be "motivated to act " well before the date because of the short sale and foreclosures' lengthy process.
Currently the tax-relief act allows homeowners to exclude from income (for the sake of tax purposes) primary mortgage debt (1st trust deed) forgiven by their lender.(i.e short sale, short refi , foreclosure or deed in lieu)
Impacted home owners are most easily identified by simply pulling a title report and comparing the amount of the original loan (1st TD) vs the current 1st TD.
If the balance is higher...you may have a motivated seller. Here's why:
After Dec 31., if a lender cancels a home owner's debt, the IRS requires the debt be treated (reported) as "general income"...because the duty to repay it no longer exists.
For example: if a homeowner owes $250,000 and the lender forgives $50,000 of that debt, that $50,000 is considered income.
If the homeowner's combined federal and state marginal tax rate is 36%, the seller would owe $18,000 in taxes. A BIG DETERENT TO JERKING YOU AROUND ANS SABOTAGING THE SALE AT THE VERY LAST POSSIBLE MOMENT!
Note ....when a homeowner refinances their current mortgage to a LOWER loan balance, there is no tax on the difference between what a homeowner owes on the old loan and what a home owners owes on the new loan amount.( becasue the basis is higher)
However the refinanced loan amount is now a "recourse debt" which may subject the borrower to a future lawsuit for a "deficiency judgment".
Here are a few of the other important rules the homeowner needs to know:
• The debt-relief law applies only to debt incurred to buy, build or improve a personal residence. (S ave your receipts in case of an audit).
It does not apply to a HELOC used to pay off debts or used as "walking around money".
• The act does not apply to vacation homes or investment properties.
• The max. amount a homeowner can treat as indebtedness is $2 million, or $1 million if married but filing separately.
The expiration of the act will motivate many home owners to seriously consider selling...OR..if not ...save you gas, time and emotional grief!
Well, that's all folks, I hope you enjoyed learning something new today about real estate tax law!!! Sincerely, Stacie MacDonald - Your Short Sale expert!
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