If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
The following conditions qualify a seller for a Short Sale:
.Your property is worth less than the total mortgage you owe on it.
.You have a financial hardship, such as a job loss or major medical bills.
.You have contacted your lender and it is willing to entertain a short sale.
Although a refinancing programs may be available, banks are too busy and may not offer a proper payment method that is convenient to the seller's particular situation. It may turned out to be a stalling process to an inevitably Short Sale.
The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process.
Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
A hardship letter detailing your financial situation and why you need the short sale
1)A copy of the purchase contract and listing agreement
2)Proof of your income and assets
3)Copies of your federal income tax returns for the past two years
Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months.
You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale.
Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit less than foreclosure and bankruptcy. Source from OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®
September 6,2010
Monday, September 6, 2010
Wednesday, August 4, 2010
Market Indicators
These are some housing indicators that say where the market is right now.
Housing Market Indicators:
Florida existing home sales:
(month-to-previous-year comparison)15%
Florida existing condo sales:
(month-to-previous-year comparison)33%
Florida existing home median price:$143,400
Florida existing condo median price: $95,000
Florida consumer confidence: 65
National existing home sales:
(month-to-previous-month comparison; all housing types) -5.1%
National existing home median price $183,700
National (Freddie Mac) mortgage rate
(all housing types) 4.56%
Source:Florida Realtors® Headquarters
Housing Market Indicators:
Florida existing home sales:
(month-to-previous-year comparison)15%
Florida existing condo sales:
(month-to-previous-year comparison)33%
Florida existing home median price:$143,400
Florida existing condo median price: $95,000
Florida consumer confidence: 65
National existing home sales:
(month-to-previous-month comparison; all housing types) -5.1%
National existing home median price $183,700
National (Freddie Mac) mortgage rate
(all housing types) 4.56%
Source:Florida Realtors® Headquarters
Saturday, March 6, 2010
Lender Checklist: What You Need for a Mortgage
- W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for everyperson signing the loan.
- Copies of at least one pay stub for each person signing the loan.
Account numbers of all your credit cards and the amounts for any outstanding balances. - Copies of two to four months of bank or credit union statements for both checking and savingsaccounts.
- Lender, loan number, and amount owed on other installment loans, such as student loans andcar loans.
- Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
- Copies of brokerage(investments) account statements for two to four months, as well as a list of any other major assets ofvalue, such as a boat, RV, or stocks or bonds not held in a brokerage account.
- Copies of your most recent 401(k) or other retirement account statement.
- Documentation to verify additional income, such as child support or a pension.
- Copies of personal tax forms for the last two to three years.
Source: Realtor ® Magazine, March 6,2010
Friday, February 19, 2010
Landscaping Tricks that will WOW most buyers
In today's market, sellers have to work harder to persuade buyers that their property is worth the bite.
According to Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.
1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.
2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.
3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.
4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.
5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.
6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.
Source: REALTOR® magazine by Barbara Ballinger
Source: Michael Glassman, landscape designer, Michael Glassman and Associates, Sacramento, Calif., www.michaelglassman.com
According to Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.
1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.
2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.
3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.
4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.
5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.
6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.
Source: REALTOR® magazine by Barbara Ballinger
Source: Michael Glassman, landscape designer, Michael Glassman and Associates, Sacramento, Calif., www.michaelglassman.com
Monday, January 25, 2010
Tax Deductions when owning a house
At tax time, your house is not simply a home: It's also a tax deduction.
You get to deduct:
- Your property taxes. And if you bought the home in 2009, you may be able to deduct more property taxes than you think. Don’t forget to include taxes you may have reimbursed the seller for—taxes the seller had already paid before you took ownership.
- You won't get a 1098 report listing these taxes. Instead, that amount will be shown on the settlement sheet.
- Property taxes for taxpayers who don't itemize. You can increase your 2009 standard deduction by up to $500 for real estate taxes paid in 2009 or by up to $1,000 for real estate taxes paid in 2009 if you are married and file jointly.
- The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
- The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
- Points that you paid when you purchased the house (or those that you convinced the seller to pay for you).
- The premiums paid for Private Mortgage Insurance (PMI) in 2009, but only for policies issued after 2006. (The right to this deduction disappears as Adjusted Gross Income rises from $100,000 to $110,000 (or $50,000 to $55,000 for those who use married filing separately status.)
- Home improvements required for medical care.
Call your Accountant for more details or your Tax Return agency.
Source: TurboTax for 2009
Wednesday, January 6, 2010
Sellers Need to List their House NOW!
Daily Real Estate News January 6, 2010
Sellers Should List Homes Early Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.
Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”Traffic on real estate Web sites begins to rise right after the New Year, says Ken Shuman, spokesman for real estate Web site Trulia.com. Source: Forbes.com, Francesca Levy (12/24/2009)
Sellers Should List Homes Early Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.
Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”Traffic on real estate Web sites begins to rise right after the New Year, says Ken Shuman, spokesman for real estate Web site Trulia.com. Source: Forbes.com, Francesca Levy (12/24/2009)
Sunday, December 13, 2009
Summers Predicts Job Growth by Spring
“Most professional forecasters are looking for a return to job growth by the spring,” he said in an appearance on “ABC’s “This Week with George Stephanopoulos.”
Mr. Summers, director of the White House’s National Economic Council, made his forecast one day before President Obama is scheduled to meet with banking executives at the White House in an effort to ratchet up lending to consumers and small businesses, to make it easier for homeowners to obtain mortgages and spur businesses to generate jobs.
Mr. Summers, Secretary of the Treasury at the end of President Clinton’s administration, said that “it doesn’t cost anything to encourage banks to expand the flow of credit to small businesses.” He said the president will remind them that given what the federal government did to bail out banks when they were in trouble, they have an obligation “to enhance lending across the country.”
“We were there for them and the banks need to do everything they can” to be sure they help American business and generate jobs, he said.
The nation’s unemployment rate stabilized in November, with only 11,000 more people losing jobs and the rate itself edging down to 10.0 percent from its yearlong peak the previous month. The ranks of the employed stood at 138.5 million in November and the number of unemployed still seeking jobs stood at 15.4 million. When the recession began in December 2007, 7.5 million Americans were unemployed and the jobless rate stood at 4.9 percent.
Mr. Summers said flatly that “everyone agrees the recession is over.” But at least one dissenter was Senator Mitch McConnell of Kentucky, the Republican minority leader, who said on CBS’s “Face the Nation” that, given a 10 percent national unemployment rate and 11 percent in Kentucky, “I don’t think it’s over.”
“I hope he’s right that we’re coming out of an economic slowdown, but unemployment is the key,” he added.
Mr. Summers, though, sounded a more upbeat tone.
“We were losing 700,000 jobs a month when President Bush turned the economy over to President Obama,” he said. But looking at the latest employment statistics, he said, by spring, “growth will be starting to turn positive.”
Asked what the Obama administration would be doing to create jobs, Mr. Summers said, “Every bill is going to be a jobs bill.” The president plans to spend $50 billion on repairing the nation’s infrastructure, and health care reform — the centerpiece of the Obama domestic agenda — too would help he economy by paring away the nation’s deficit, which he described as an $8 trillion shortfall over 10 years that “the Obama administration inherited.”
By JOSEPH BERGER
Published: December 13, 2009 , New York Times
Mr. Summers, director of the White House’s National Economic Council, made his forecast one day before President Obama is scheduled to meet with banking executives at the White House in an effort to ratchet up lending to consumers and small businesses, to make it easier for homeowners to obtain mortgages and spur businesses to generate jobs.
Mr. Summers, Secretary of the Treasury at the end of President Clinton’s administration, said that “it doesn’t cost anything to encourage banks to expand the flow of credit to small businesses.” He said the president will remind them that given what the federal government did to bail out banks when they were in trouble, they have an obligation “to enhance lending across the country.”
“We were there for them and the banks need to do everything they can” to be sure they help American business and generate jobs, he said.
The nation’s unemployment rate stabilized in November, with only 11,000 more people losing jobs and the rate itself edging down to 10.0 percent from its yearlong peak the previous month. The ranks of the employed stood at 138.5 million in November and the number of unemployed still seeking jobs stood at 15.4 million. When the recession began in December 2007, 7.5 million Americans were unemployed and the jobless rate stood at 4.9 percent.
Mr. Summers said flatly that “everyone agrees the recession is over.” But at least one dissenter was Senator Mitch McConnell of Kentucky, the Republican minority leader, who said on CBS’s “Face the Nation” that, given a 10 percent national unemployment rate and 11 percent in Kentucky, “I don’t think it’s over.”
“I hope he’s right that we’re coming out of an economic slowdown, but unemployment is the key,” he added.
Mr. Summers, though, sounded a more upbeat tone.
“We were losing 700,000 jobs a month when President Bush turned the economy over to President Obama,” he said. But looking at the latest employment statistics, he said, by spring, “growth will be starting to turn positive.”
Asked what the Obama administration would be doing to create jobs, Mr. Summers said, “Every bill is going to be a jobs bill.” The president plans to spend $50 billion on repairing the nation’s infrastructure, and health care reform — the centerpiece of the Obama domestic agenda — too would help he economy by paring away the nation’s deficit, which he described as an $8 trillion shortfall over 10 years that “the Obama administration inherited.”
By JOSEPH BERGER
Published: December 13, 2009 , New York Times
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