Posted by Robert Fraijo on February 3, 2012 · Leave a Comment
As seen on the IRS Website.
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.
The following... [continued...]
Posted by Robert Fraijo on August 23, 2011 · Leave a Comment
You may be facing foreclosure… so what are your options?
First, try to look at the situation more from a financial standpoint rather than an emotional standpoint. This way you can more successfully analyze which option might best suit your needs and desires to move you towards resolving your financial difficulty.
One very important thing to remember: time is of the essence. Take time to think through your situation and make a decision. Then, take action right away so you have enough time to complete the solution you choose.
Nine Options to Consider When Facing Foreclosure
Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance... [continued...]
Posted by Robert Fraijo on August 23, 2011 · Leave a Comment
Deficiency judgments are not very common, but can pose serious problems. What are they, and how do they affect your short sale?
To help answer this question, we found this video on YouTube. It is a great primer on the subject! For more information, call Robert at (949) 234-1438 or contact him via email.
Posted by Robert Fraijo on August 23, 2011 · Leave a Comment
This short 3-minute video from Suze Orman offers some timely tips on tax issues relating to short sales and foreclosures. Suze also discusses recent tax changes regarding PMI (private mortgage insurance) and other issues. For more information, call Robert at (949) 310-1252 or contact him via email.
Posted by Robert Fraijo on August 8, 2010 · Leave a Comment
I noticed an article in the San Francisco Chronicle about a new pool of Federal assistance money. This might be a good strategy for borrowers to bridge the gap while temporarily unemployed, or if hit with unexpected medical bills. It could also be part of a plan to best utilize a short sale on your principal residence, as the assistance money will “buy” some time for you and your family to resume payments on your mortgage, or will give us ample time to negotiate a short sale with your bank.
Congress has just come up with an extra $1 billion to help people who can’t pay their mortgage because of unemployment or a medical problem.
Under this new Emergency Mortgage Relief program, eligible homeowners who are at least three months delinquent can get up to $50,000 apiece in federal loans to pay their mortgages.
The money for this program came in the financial regulation bill signed last week and will be made available to the U.S. Department of Housing and Urban Development... [continued...]
Posted by Robert Fraijo on July 1, 2010 · Leave a Comment
This just in! The House of Representatives has approved, and President Obama is expected to sign, a bill that extends the $8,000 first-time homebuyer credit until September 30, 2010. Also available is for existing homeowners is a $6,500 credit on the purchase of their next home.
These credits were previously due to expire on June 30th. The new deadline requires purchases to close their escrows by September 30th.
Here’s a good article on CNN Money with more information about this important story.
Posted by Robert Fraijo on November 20, 2009 · Leave a Comment
Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? That’s true, but it pays to know a little about the seller’s situation before you make an offer.
If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.
A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.
You’re a good... [continued...]
Posted by Robert Fraijo on November 15, 2009 · Leave a Comment
Even Academy Award winners are suffering from financial woes this recession. Actor Nicolas Cage lost two homes in New Orleans worth a total of $6.8 million in a foreclosure auction Thursday.
Birmingham, Ala.-based Regions Bank purchased Cage’s 1140 Royal Street property in the French Quarter appraised at $3.5 million for $2.3 million. The bank, which has about 1,900 branches throughout the South, Midwest and Texas, paid $2.2 million for Cage’s 2523 Prytania Street property appraised at $3.3 million in the Garden District.
Read the rest of the story by Hibah Yousuf, CNNMoney.com staff reporter, on Yahoo.com