Comments on: Real estate short sale: More tips to stop foreclosure http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/ Distressed Real Estate News and Opinion Thu, 02 Feb 2012 16:42:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jennifer http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-30097 Jennifer Wed, 30 Dec 2009 17:33:36 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-30097 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. Link to IRS - Mortgage Forgiveness Act: http://www.irs.gov/individuals/article/0,,id=179414,00.html There is tax relief for struggling homeowners. If your mortgage debt is partly or entirely forgiven at any time during 2007 through 2012, you may be able to claim special tax relief on your federal income tax return for that year. IRS Link - 6 Key Things You Need to Know about Mortgage Workouts http://www.irs.gov/newsroom/article/0,,id=184704,00.html 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.

Link to IRS – Mortgage Forgiveness Act:
http://www.irs.gov/individuals/article/0,,id=179414,00.html

There is tax relief for struggling homeowners. If your mortgage debt is partly or entirely forgiven at any time during 2007 through 2012, you may be able to claim special tax relief on your federal income tax return for that year.

IRS Link – 6 Key Things You Need to Know about Mortgage Workouts
http://www.irs.gov/newsroom/article/0,,id=184704,00.html

]]> By: cindy http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-29806 cindy Sun, 20 Dec 2009 22:47:08 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-29806 how can you say short sales are better than foreclosure. many people who have short saled in the last 3 years are now having to pay taxes on the loss. many people sold for 200k less then they bought. taxes are based on 200k loss. at a 35% tax base that is $70,000.00 dollars people are paying in back taxes off the loss. if they would have let it go into foreclosure they would owe ZERO in back taxes. there are many agents pushing people to short sale so they can get a commission. these banks do not send a tax bill right away. it is coming a year or two later. surprise the seller gets stuck with a 70,000.00 bill so there greedy agent could make a couple thousand on the commission. more people should educate themselves on short sales. especialy greedy agents. what comes around goes around. how can you say short sales are better than foreclosure. many people who have short saled in the last 3 years are now having to pay taxes on the loss. many people sold for 200k less then they bought. taxes are based on 200k loss. at a 35% tax base that is $70,000.00 dollars people are paying in back taxes off the loss. if they would have let it go into foreclosure they would owe ZERO in back taxes. there are many agents pushing people to short sale so they can get a commission. these banks do not send a tax bill right away. it is coming a year or two later. surprise the seller gets stuck with a 70,000.00 bill so there greedy agent could make a couple thousand on the commission. more people should educate themselves on short sales. especialy greedy agents. what comes around goes around.

]]> By: What is a short sale http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-14301 What is a short sale Wed, 29 Oct 2008 00:51:32 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-14301 Short sales are a great way for homeowners to avoid foreclosure. More people should educate themselves about real estate short sales. Short sales are a great way for homeowners to avoid foreclosure. More people should educate themselves about real estate short sales.

]]> By: Houseflow.com http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-150 Houseflow.com Sun, 24 Feb 2008 23:54:42 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-150 Great Post. Short Sales are killing lenders right now. But they are still going for it since its cheaper then going into a foreclosure. Great Post. Short Sales are killing lenders right now. But they are still going for it since its cheaper then going into a foreclosure.

]]> By: raleigh hills real estate http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-149 raleigh hills real estate Mon, 31 Dec 2007 12:15:38 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-149 Short sales are looking even better right now. I noticed the inventory is raising locally. Might be a good thing for investors. Short sales are looking even better right now. I noticed the inventory is raising locally. Might be a good thing for investors.

]]> By: Jack http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-148 Jack Fri, 20 Jul 2007 03:07:21 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-148 For Rocco Supino. Unless you measured the outside of your house you will come up with the wrong square footage. When builders tell you the house is X square feet under air and X square feet under roof they are going by the exterior measurements of the structure. For example if you have a box shape house that measures 40' by 40' you have a house with 1600 square feet under roof and if there are not any porches or patios it could be 1600 sq. ft. under air. The reality of it is you have about 160 sq. ft. of exterior wall and maybe another 100 sq. ft. of interior walls so your measurable interior living area will only be 1340 sq. ft. BUT, municipality will show your house at 1600 sq. ft and you will be taxed on 1600! Hope that helps you understand why your measurements may be different and there is a possibilty the Realtor doesn't know how the sq. footage is calculated. For Rocco Supino.

Unless you measured the outside of your house you will come up with the wrong square footage. When builders tell you the house is X square feet under air and X square feet under roof they are going by the exterior measurements of the structure. For example if you have a box shape house that measures 40′ by 40′ you have a house with 1600 square feet under roof and if there are not any porches or patios it could be 1600 sq. ft. under air. The reality of it is you have about 160 sq. ft. of exterior wall and maybe another 100 sq. ft. of interior walls so your measurable interior living area will only be 1340 sq. ft. BUT, municipality will show your house at 1600 sq. ft and you will be taxed on 1600!
Hope that helps you understand why your measurements may be different and there is a possibilty the Realtor doesn’t know how the sq. footage is calculated.

]]> By: Rocco Supino http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-147 Rocco Supino Fri, 13 Jul 2007 19:32:38 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-147 I just recently refinanced my home in Pa. and then decided to put the house on the market and move to Florida for health reasons. The real estate agent that came to my house told me that the square footage registered at the court house is incorrect and I wouldn't be able to sell it at the listed 1944 square footage . I myself measured the rooms and came up with less than 1400 sq,ft. i was told to get a different appraiser and to also to appeal to the assessement office. We are totally discouraged with this , and have moved out. We also have not paid the last two months mortage, and are living elsewhere. Can you shed some light on this situation? I just recently refinanced my home in Pa. and then decided to put the house on the market and move to Florida for health reasons. The real estate agent that came to my house told me that the square footage registered at the court house is incorrect and I wouldn’t be able to sell it at the listed 1944 square footage . I myself measured the rooms and came up with less than 1400 sq,ft. i was told to get a different appraiser and to also to appeal to the assessement office. We are totally discouraged with this , and have moved out. We also have not paid the last two months mortage, and are living elsewhere. Can you shed some light on this situation?

]]> By: Michael Spickes with America's Home Rescue http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-146 Michael Spickes with America's Home Rescue Thu, 05 Jul 2007 20:05:10 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-146 Short Sales: Knowing Lender Thresholds for VA, FHA, and Conventional Loans = Saving Your Commission!!! In working Short Sales, there are some numbers and calculations that are especially critical and knowing how to run these calculations will ultimately save you many headaches in the long-run. For instance, the initial list price for the Listing Agreement that is submitted to the bank, the initial list price for MLS, the net amount that banks typically require in a Short Sale given the type of loan, the bottom-line offer that will be necessary to cover the bank's required net, as well as all broker commissions and Seller closing costs. In addition, you need to know how the numbers are affected if there are multiple mortgages on the property. All of these numbers are critical for you to facilitate the transaction effectively, gain credibility with the bank, and best represent your client. Determine the Lender's Discount Threshold Banks have a threshold at which they will accept or reject on offer in a Short Sale. And knowing these approximate discount thresholds is imperative in determining your list price for MLS, so that you are able to generate an offer that will meet the bank's requirements, as well as cover all the Seller closing costs and protect your commission. When we refer to the banks "discount threshold", we are referring to the net amount that the bank requires in the transaction after all approved closing costs and commissions have been paid in the transaction. As a reminder, when it comes time to go active on the market in MLS, you need to adjust the price in the Listing Agreement and have your client initial off on this price change. Calculating the initial list price for MLS is a critical part of setting up the Short Sale. We all know that when considering market comparables for a specific area, if the price per square foot of your client's property is equal to or higher than any other property in the neighborhood, your chances of getting an offer quickly are pretty slim and the whole goal in a Short Sale is generating an offer quickly so that the house doesn't go to foreclosure. In many states, the foreclosure process is a very aggressive one, so knowing how to calculate your initial list price for MLS is imperative. To do this, you must know what kind of loan you are shorting and have a good idea as to what the lender's discount thresholds are for each type of loan. Currently... FHA loans are insured at 82% of the current market appraised value VA loans are guaranteed at 88-91% of the current market appraised value Conventional and Home Equity lenders expect net proceeds of no less than 85-92% of the current market appraised value. Note: These thresholds represent a percentage of current market value, not the loan balance. Currently, the Conventional threshold is 85-92% of current market value. This threshold fluctuates with the market and is lender-specific. We have been working Short Sales for almost 5 years and FHA and VA thresholds have not changed during this time. Know that changes in market conditions, bank policy and/or the passing of legislation can effect these thresholds. If the market takes a turn for the worse and property inventory increases for lenders, you will most likely find that Conventional thresholds will decrease. Know the numbers, save your commission, and enjoy building a commission-generating machine in Short Sales! The Team at America's Home Rescue Short Sale Resources & Education for Real Estate Agents www.ShortSaleSolutions.biz Short Sales: Knowing Lender Thresholds for VA, FHA, and Conventional Loans = Saving Your Commission!!!

In working Short Sales, there are some numbers and calculations that are especially critical and knowing how to run these calculations will ultimately save you many headaches in the long-run. For instance, the initial list price for the Listing Agreement that is submitted to the bank, the initial list price for MLS, the net amount that banks typically require in a Short Sale given the type of loan, the bottom-line offer that will be necessary to cover the bank’s required net, as well as all broker commissions and Seller closing costs. In addition, you need to know how the numbers are affected if there are multiple mortgages on the property. All of these numbers are critical for you to facilitate the transaction effectively, gain credibility with the bank, and best represent your client.

Determine the Lender’s Discount Threshold

Banks have a threshold at which they will accept or reject on offer in a Short Sale. And knowing these approximate discount thresholds is imperative in determining your list price for MLS, so that you are able to generate an offer that will meet the bank’s requirements, as well as cover all the Seller closing costs and protect your commission. When we refer to the banks “discount threshold”, we are referring to the net amount that the bank requires in the transaction after all approved closing costs and commissions have been paid in the transaction. As a reminder, when it comes time to go active on the market in MLS, you need to adjust the price in the Listing Agreement and have your client initial off on this price change.

Calculating the initial list price for MLS is a critical part of setting up the Short Sale. We all know that when considering market comparables for a specific area, if the price per square foot of your client’s property is equal to or higher than any other property in the neighborhood, your chances of getting an offer quickly are pretty slim and the whole goal in a Short Sale is generating an offer quickly so that the house doesn’t go to foreclosure. In many states, the foreclosure process is a very aggressive one, so knowing how to calculate your initial list price for MLS is imperative. To do this, you must know what kind of loan you are shorting and have a good idea as to what the lender’s discount thresholds are for each type of loan.

Currently…

FHA loans are insured at 82% of the current market appraised value

VA loans are guaranteed at 88-91% of the current market appraised value

Conventional and Home Equity lenders expect net proceeds of no less than 85-92% of the current market appraised value.

Note: These thresholds represent a percentage of current market value, not the loan balance. Currently, the Conventional threshold is 85-92% of current market value. This threshold fluctuates with the market and is lender-specific. We have been working Short Sales for almost 5 years and FHA and VA thresholds have not changed during this time. Know that changes in market conditions, bank policy and/or the passing of legislation can effect these thresholds. If the market takes a turn for the worse and property inventory increases for lenders, you will most likely find that Conventional thresholds will decrease.

Know the numbers, save your commission, and enjoy building a commission-generating machine in Short Sales!

The Team at America’s Home Rescue
Short Sale Resources & Education for Real Estate Agents
http://www.ShortSaleSolutions.biz

]]> By: DANY http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-145 DANY Fri, 20 Apr 2007 05:04:36 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-145 I have condo that was appraised for 340,000, I owe 303 000. I have been on market for 10 mounts now and my asking price is 329 000. The problem is that no one buys it at this price. If I lower the price then I will not have enough for the brokers commision. The buysr also want 11 000 closing cost for their pard to be paid. My closing cost form my part as seller is about $4000. When I put nubers together 17 000-comissions 10 000-closing cost buyer 4000 my closing cost 303 000-owed to banks total is 333 000. The problem is that I had offers but they were that low 307 000-first offer 319 000-offer plus 10000 closing cost. I don't know what to do no matter what I have to go for short sale. The problem is when the buyers see short sale listed they walk away because it takes long time to the banks to make up their mind for the short sale. Is there some one out there to help please. I will give you also my other e-mail yordankaproperty@yahoo.com thank you DANY I have condo that was appraised for 340,000, I owe 303 000. I have been on market for 10 mounts now and my asking price is 329 000. The problem is that no one buys it at this price. If I lower the price then I will not have enough for the brokers commision. The buysr also want 11 000 closing cost for their pard to be paid. My closing cost form my part as seller is about $4000. When I put nubers together
17 000-comissions
10 000-closing cost buyer
4000 my closing cost
303 000-owed to banks
total is 333 000.
The problem is that I had offers but they were that low
307 000-first offer
319 000-offer
plus 10000 closing cost.
I don’t know what to do no matter what I have to go for short sale. The problem is when the buyers see short sale listed they walk away because it takes long time to the banks to make up their mind for the short sale.
Is there some one out there to help please. I will give you also my other e-mail yordankaproperty@yahoo.com
thank you
DANY

]]> By: Realty News » Real estate short sale: More tips to stop foreclosure http://blog.foreclosure.com/2007/04/real-estate-short-sale-more-tips-to-stop-foreclosure/comment-page-1/#comment-144 Realty News » Real estate short sale: More tips to stop foreclosure Tue, 10 Apr 2007 20:48:44 +0000 http://blog.foreclosure.com/2007/04/03/real-estate-short-sale-more-tips-to-stop-foreclosure/#comment-144 [...] Original post by Foreclosure.com Related ArticlesOhio earmarks funds to stop foreclosureReal estate agents: Target motivated buyers in select zip codesForeclosure.com’s top nationwide foreclosure database in demandSearching just got even easier: Foreclosure.com launches “Saved Listings”Get foreclosure help in Maryland [...] [...] Original post by Foreclosure.com Related ArticlesOhio earmarks funds to stop foreclosureReal estate agents: Target motivated buyers in select zip codesForeclosure.com’s top nationwide foreclosure database in demandSearching just got even easier: Foreclosure.com launches “Saved Listings”Get foreclosure help in Maryland [...]

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