Tag Archives: Foreclosures

Why You Should Do A Short Sale Soon!

There are consequences of doing a short sale whether it be within the Santa Maria real estate market or anywhere your house is located this is on the grounds that you owe more relative to your  mortgage home loan than what your home happens to be worth at this time, this is when you are upside down.  Do not get me wrong there are some benefits to a short sale as well, but we are only going to touch a little bit about the dark side.  Reality therea are millions of homes owners facing this and many of the homes in Santa Maria are short sales at this time.
Assuming that you read my last blog then you read with respect to the benefits of carrying out a short sale supposing that you did not you might want to visit that blog seeing that there are some benefits as to why you would want to do a short sale vs. letting your home foreclose if you do not qualify for a loan modification.  The  majority of Santa Maria homes for sale in addition to quite a bit of likely in Calif. are either a short sale or a foreclosure and a number homeowners could be contemplating what course of action to do whether to do nothing but walk away or work in connection with doing a short sale.  So if you are on the fence of just walking or doing a short sale maybe this can help.

You need to take into consideration that you owe $400,000.00 on a house that is just worth $200,000.00.  What takes place towards the difference???

First we choose to talk with reference to the IRS, the Feds also then we choose to talk in regard to the effect with regard to a state level regarding in what way or manner they look at that $200,000.00 dollar variation.   nonetheless what takes place provided that you do a short sale does the bank eat the difference,  The response depends relative to where you live.  You will have to look into the laws of your state, for instance provided that a bank agrees to do a short sale in the state of California whether it be a first or a second the bank will not be able to  come after you for the deficiency amount.  For instance if you had a second on your home in a foreclosure they may be able to take you to court for what you owe them.

Most reading this are probably thinking that’s cool sign me up also let’s do a short sale.  The only problem is that the IRS considers any canceled debt as ordinary income, even when dealing even with credit cards in reference to working on settlements.  So but now the picture is not so rosy especially with the condition that you have never made $200,000.00 in your life in addition to at this time looking at a tax bill of $200,000.00.   supposing that you do a short sale you will be receiving a 1099C for 200k with the condition that you do a foreclosure you will receive a 1099A, these will need to be filed even with your tax return.  So now what should you do?  You should have a couple of alternatives and do please keep in mind try to go to someone that is incredibly experienced with taxes this is not something you want to just let anyone do for you.

So here are some Exceptions towards the rule on paying taxes.. Listen up 😉

1)      The IRS will not collect taxes with respect to the deficiency amount assuming that the homeowner filed Bankruptcy also included the deficiency amount.

2)      The homeowner filed insolvency at the time of cancellation of debt, which means that you owed more than what you have in assets you do not have to file BK this may be done at the time when filing your tax return.

3)      assuming that this was a rental property in addition to you could offset debt by other business liabilities in addition to expenses basically back to being insolvent.

with the condition that you just let the home to go to foreclosure no worries this is straight from the IRS themselves

Update Dec. 11, 2008 – The Mortgage Forgiveness 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 let alone a foreclosure, qualify for this relief.  bear in mind DECEMBER 31, 2012 SO with the condition that YOU ARE THINKING OF carrying out A SHORT SALE DO IT SOON!!

This provision applies towards debt forgiven within calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exception ($1 million if married filing separately). http://www.irs.gov/newsroom/article/0,,id=174034,00.html

In closing the benefits always do out weigh the consequences in doing short sale vs. a foreclosure.  Biggest benefit would be when do you want to become a homeowner again, and stop having to deal with what is going to happen next,  both will impact your credit just one impacts it slightly less.  This was just a brief summary of the tax consequences involved as well as you will need to seek the counsel of somebody that can help you with filing for your taxes.  The real estate market will still have a few years of dealing with foreclosures in addition to short sales as the primary source of homes on the market.

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Who Wants To Know How To Buy A Foreclosure?

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Buying Bank Owned Property

Essentially, there are three distinct phases at which it is possible to buy a foreclosures property. Financiers and homebuyers can purchase a property foreclosure property in the initially part of default — prior to a property foreclosure public sale takes place. Second, investors can purchase a property at the open public foreclosure auction. And ultimately, a property foreclosure property may be bought from the bank or lending institution if no one presentations at the open public sale and the financial institution repossesses the property.

As soon as a property is repossessed by a bank or lender, the property will probably be outlined for deal through a property associate. This is virtually constantly the case, as banks should need to be capable to prove which these folks possess attempted their very best to reclaim well-rounded “market treasure” for their equipment and didn’t merely bail out and dump the property at the taxpayer’s expense. Even so, Good purchases are available, in Beverly MA real estate for sale as well as a lot of, a lot of various trading markets, but these folks call for research, planning, patience and persistence. Buying a bank-owned residence in property foreclosure isn’t easy, and it’s scarcely with no risk. Prior to you take into account plunging headlong into the foreclosure industry, ensure to do some in-depth research.

Right here is a number of details you can do to successfully acquire a bank-owned REO:

1. Inspect Property.

Most property foreclosure components are referred to by financiers as “distressed” attributes. Bank-owned property foreclosure houses are generally sold “as is,” which means which the 15 % low cost you simply saved on the acquire price can quickly be eaten up by unforeseen expenditures — like fixes not quickly apparent in an exterior inspection. Quite a few proprietors of houses that go into foreclosures have been having difficulties financially, which normally means that the house has not received required fixes or general maintenance for a while. Some homeowners who get rid of their property to a loan company typically harm the property. So be prepared to do makeovers and fixes. Recruit a accredited house inspector to provide you with a created approximation of the price to restoration the property. Budget which number into the buy price. Service prices may be employed later on in your negotiation with the bank to lower the inquiring price.

2. Deed Research.

As soon as a residence has been located, look the open public information for liens and remaining taxes. Doing so is true in Beverly MA real estate for sale and real estate for deal in any various place. You should perform a preliminary check of title on RealtyTrac and after that recruit a name company to run a full, policyholder name look earlier than cinching the deal. Liens as a property can hard drive up the buy price. Common liens generally are brought on a property for unpaid loans borrowed against the property, taxes or unpaid hvac dealers (mechanics liens). These liens remain intact until the money is paid, which suggests that you may need to pay off the liens on the foreclosed property you are buying — also though you’re not the one who didn’t pay the property taxes. Banks should crystal clear the name before selling but in no way believe this is the claim — just as you would if you have been buying a property from anybody else. Find out more about government tax foreclosures.

3. Make a deal.

Financiers ought to be prepared to make a deal a lower lower fee, a lower curiosity charge, a reduction in securing prices and a lower asking price. Many mortgage loan companies may be ready to waive some cinching costs, possibly also present a escape on the interest charge or the down fee. Moreover, most lenders may possibly provide to finance the property at a below-market fee or using a lower-than-usual lower fee. Don’t be afraid to ask for a far better cost and desirable terms.

4. The Offer.

Though a lot banking institutions need to unload their foreclosed qualities, they won’t essentially do so cheaply. So you aren’t guaranteed a astonishing price. But bear in mind you’re dealing with an keen seller. Even however the bank’s REO administrator or their itemizing associate might point towards that the number price is “firm,” never be frightened to make a deal price — particularly if the foreclosed bank-owned residence must repairs. Once presenting a low provide, you need to substantiate the lessened price tag in creating and doc the case. You should furnish pictures and price estimates for fixes to assist the present total volume.

5. Funding.

With excellent credit, a lot of financial institutions could loans the full price tag of the property foreclosure or a lot more. If the home is to be applied as a rental, quite a few banking institutions will need only a 10 percent down fee. Foreclosure investors using a vast amount of fairness in one more residence may get a family of credit from their bank to purchase a property foreclosure. Once they transform the series of credit score to a mortgage loan, no straight down fee may be required. Uncover how to receive a cost-free credit report.

Now Get Out there and Do It!

Whether or not you are desiring at an investment in Beverly MA real estate for deal or some other location, the economic system needs you.

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If You Stop Making Payments On Your Home

So what happens if you stop paying on your mortgage home loan.  This is a pretty basic outline of what happens whether you are in the Santa Maria real estate area or not.

So if you get to the point that making your mortgage payments on your home is more than you can do before you completely stop paying first thing is try calling your mortgage company.  You may want to see if you can get a loan modification on your loan.  Just be careful on not getting scammed on trying to get loan modification and not getting ripped off.  Banks have gotten a little bit easier to deal with but are still a challenge when trying to get a loan modification.  But when it comes to either losing your home or getting a loan modification what do you have to lose in trying?

But the question is what if you just know you will not qualify for a loan modification because you don’t have a job.  Because regardless of what you have heard you have to show proof of income to get a loan modification.   Some lenders will offer you a forbearance which is usually a temporary payment plan but it is not a load modification.  But it can buy you some time to avoid foreclosure.  They usually don’t even ask for any proof of income but at the same time it is temporary and if you can get them to reduce your payment to where you can afford it for the next 3 to 6 months.  You might be able to avoid foreclosure all together.  Keeping your home off the market and joining the ranks with many other home owners just remember you are not alone, if it comes to this.

If the lender is not willing to work with you then it will lead to them having to file a notice of default on you (NOD) on your home.  With county recorders office.  Usually this happens 3 months after you have not paid your mortgage payment.  But things have changed with so many homes going into the foreclosure process it many even be 6 months before they even file a NOD on you.  Once the NOD is filed it’s the start of the foreclosure process.

Now you have to remember these are not normal times we are currently living in and time frames in today’s real estate market are taking longer than normal.  If another 3 months passes.   Then this is where trustee comes in to play and files a notice of sale.  This is where they auction your home off at the county court house. The notice of sale is published locally in a local paper with your name and address and the amount of the note or mortgage and the date of the trustee sale.  All the embarrassing and pertinent information needed.  It will come out at least once a week for next three weeks.

 

Now this is still your redemption period if you can come up with all payments owed and fees etc etc.  Now once the home goes to the auction block anyone can buy it at the highest bidder above what the minimum bid has been established at the auction.  Sometimes the minimum bid is what is owed on the home and the home is not worth the loan amount anymore.  And if no one bids on the that is when it just goes back to the bank since no one is going to pay  for a home for more than what it is worth.  Some times the minimum bid is actually less than what is owed and it can even be less that the actual value of the home giving the buyer a sweet and profitable deal.  But the catch is that it must be in CASH at the spot usually MUST HAVE CASHIERS CHECKS IN THE AMOUNTS OF $10,000.00.  at least in the state of California.  You might want to check how your state processes buying a home at the foreclosure auction.  Also keep in mind any issues or problems with the home become your problem.  There is no disclosures at the auction house.  There is no getting a loan or thinking about it, this is a do it now, or move on situation.  So as you can tell its not for everyone and who ever the buyer is also accepts any issues that the property has so if its your home I am sure you know what issues the house may have if not then I hope your did your homework.

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

If you have any questions about buying or selling home as well as getting loan, I have been helping my clients for the last 15 years on the Central Coast, take a look at some of the Santa Maria homes for sale.  And Give me a call 805-448-7101 , DRE 01321588

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Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s

 

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Update On The Foreclosure Process


Foreclosure Contractors Face New Scrutiny From States

by Marian Wang ProPublica, May 26, 2011, 12:41 p.m.May 25, 2011May 27, 2011

While federal and state officials investigating flawed foreclosures [1] have largely focused on holding the banks accountable and bringing relief to wronged homeowners, officials in a few states have begun targeting the more obscure middlemen of the foreclosure scandal.

Prosecutors in California and Illinois have sent subpoenas [2] to Lender Processing Services, one of the largest firms that processed mortgage documents for the banks. (Read more about LPS in our guide to who2019s who of the foreclosure scandal [3].)

As we2019ve noted [4], the firm2014which helps handle more than half of all U.S. mortgages [5]2014has been accused of using the same 201Crobo-signing [6]201D practices as the major banks, such as signing and notarizing documents that appeared inaccurate or invalid. Bank employees have testified under oath that they relied on LPS to vet the information [7] in foreclosure documents.

LPS has had its share of legal troubles over its mortgage processing. Michigan’s attorney general announced an investigation last month [8] into potentially fraudulent mortgage documents processed by an LPS subsidiary. (LPS has said that it discontinued [9] the practices used by the subsidiary.) Along with the big banks, the firm recently received an order from federal regulators to correct problems with its processing of mortgage documents. (Read that consent order [10].)

Illinois Attorney General Lisa Madigan also sent a subpoena to Nationwide Title Clearing, another firm contracted to provide mortgage services to banks. As we2019ve noted [11], Nationwide Title Clearing employees have testified to robo-signing thousands of mortgage documents2014known as assignments2014that establish the ownership of a mortgage loan and are key to establishing who has the right to foreclose on a homeowner.

Nationwide Title Clearing said in a statement that its procedures have been 201Cthoroughly audited and examined for accuracy [12]201D and that it would cooperate with any investigation. LPS declined to comment.

The latest actions on foreclosure problems as an attempted comprehensive settlement by all 50 state attorneys general has hit a few roadblocks. As we noted in our cheat sheet on bank investigations [1], the negotiations have been hampered by disagreement with the banks over the size of penalties as well as some disagreement among the attorneys general2014at least eight of whom have opposed any settlement that would require banks to cut borrowers2019 mortgage debt.

Bloomberg reports today that Bank of America has also received independent scrutiny [13] from the attorneys general of Utah and Connecticut accusing the firm of invalid foreclosures [14] and insufficient loan modifications [15]. Utah warned that it would sue [14].

Follow on Twitter: @mariancw [16]

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net

I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.

my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better

information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588

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Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s




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How Many Homes Are In Foreclosure

Central Coast Homes For Sale

The majority of the Santa Maria homes for sale in the Santa Maria real estate area are mostly a byproduct of all the mortgage home loans that have gone bad and consisting of short sales and foreclosures.  Now I am not sure if the economy is really recovering or not as a whole,  although I am sure parts of the nation are.  It always seems that there is some kind of hype on how good the real estate  market is doing and how it is on the road to recovering.  But reality is that there are still millions of homeowners struggling to keep their homes and millions of homes that will either become part of the foreclosure market which will more than likely add to the pressures of forcing home values down even more than they are currently at.  The following information is reflecting the numbers possible foreclosures that are in effect for the month of February, 2011, as well the total number of homes that are distressed and how many homes have not made their mortgage payments and are in foreclosure or will be in foreclosure.

Foreclose_Sign_Pic

Information provided by Lender Processing Services Inc. (LPS), a provider of integrated technology, data and analytics to the mortgage and real estate industries, reports the following “first look” at February 2011 month-end mortgage performance statistics derived from its loan-level database of nearly 40 million mortgage loans.

According to the LPS results:

►Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.80 percent

►Month-over-month change in delinquency rate: -1.2 percent

►Year-over-year change in delinquency rate: -18.4 percent

►Total U.S. foreclosure pre-sale inventory rate: 4.15 percent

►Month-over-month change in foreclosure presale inventory rate: -0.2 percent

►Year-over-year change in foreclosure presale inventory rate: 7.4 percent

►Number of properties that are 30 or more days past due, but not in foreclosure: 4,659,000

►Number of properties that are 90 or more days delinquent, but not in foreclosure: 2,165,000

►Number of properties in foreclosure pre-sale inventory: 2,196,000

►Number of properties that are 30 or more days delinquent or in foreclosure: 6,856,000

►States with highest percentage of non-current loans: Florida, Nevada, Mississippi, New Jersey and Georgia

►States with the lowest percentage of non-current loans: Montana, Wyoming, Alaska, South Dakota and North Dakota

For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE

Central Coast Homes For Sale

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If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net

I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.

my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better

information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588

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Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.

Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.

This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez’s

 

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