Is a short sale or foreclosure in your future? Taking a hit on your credit is bad enough, but did you know that you might pay income tax on the bank's loss? The Mortgage Forgiveness Debt Relief Act (HR3648) is set to expire at the end of 2012. For short sellers of their primary residences, this act provides tax relief if they close in 2012. If you undertake a short sale, deed-in-lieu or … [Read more...]
The crack down on shady short sale deals continues. Banks and government agencies cite instances of flopping, whereby real estate agents fail to disclose other contracts to re-sell property for a higher price. Florida has a long history of being the epicenter of fraudulent real estate schemes. I have see many instances of flopping in the Tampa Bay market. In fact, I had to walk away from a … [Read more...]
Bank of America (BAC) has extended the deadline to apply for the "Florida Enhanced Short Sale Relocation Assistance" program until December 12, 2011. The program offers qualifying homeowners relocation assistance between $5,000 and $20,000 upon the completion of a short sale. An additional benefit for these pre-offer programs, such as HAFA and Bank of America's proprietary program, is that … [Read more...]
The Hillsborough County condominium market continues to sizzle as the number of units for sale falls (see Tampa Condo Analysis). The lower priced segments, particularly the under $50,000 units, are moving with extreme velocity but not necessarily at higher prices. Investors are enticed by cap rates and the stability of the rental market. We are starting to see more buyers using self-directed … [Read more...]
Are you at a crossroads? In the midst of a massive economic downturn, the asset we assumed we could always fall back on has become a financial liability for some. A large percentage of Tampa Bay homes are now worth less than their loan balance. Low prices, reduced incomes, high unemployment and uncertain forecasts have led many homeowners to seek a dignified exit strategy. Why are some … [Read more...]
The White House announced an executive order revising the Home Affordable Refinance Program (HARP) last week designed to help homeowners who are underwater refinance. If your home is worth less than the mortgage balance and you are current on payments, then you may qualify to take advantage of today's interest rates. The previous iteration of this program excluded homeowners who were more than … [Read more...]
Do you need to miss payments in order to qualify for a short sale? What if you have good credit and have not had any late payments? If a homeowner has already missed payments of any kind, then lenders can look at credit reports for a clear pattern of financial distress. If payments have not been missed, however, lenders need some evidence that a financial hardship is on the horizon. … [Read more...]
We have another closing on a Bank of America short sale today! The good news is that Bank of America continues to improve their short sale process and homeowners continue to benefit. We have seen Bank of America reduce paperwork and align their internal programs (Cooperative Short Sale Program) with government inititives such as the Home Affordable Foreclosure Alternatives (HAFA) Program, see … [Read more...]
Once a "short sale" finally goes under contract, how long can you expect to wait for a lender's decision? A recent Deutsche Bank study looked at the short sale approval process of mortgage servicers. The report found that time frames vary by loan type. For prime loans, GMAC completed short sales the fastest - averaging roughly six months per transaction. Citigroup’s CitiMortgage took … [Read more...]
As of July 2010, government programs to reduce mortgage payments for millions of homeowners have helped only about 400,000 households avoid foreclosure, though nearly 530,000 have fallen out of the program. While the bailout set aside up to $50 billion for mortgage modification programs, only $248 million has been spent according to the Government Accountability Office. … [Read more...]
