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Has anyone delt with this company before?  They are starting a Short Sale Program but they are also selling their services, having to be Short Sale Certified by them in order to receive any listings.  But this is a new venture for them so have anyone done business with them in the past for BPOs or REOs. 

As tax season approaches, and more importantly, the expiration of the Mortgage Debt Relief Act of 2007, it is important to review the tax consequences following a short sale.  In general, the IRS will treat any canceled debt, such as forgiveness of a mortgage loan, as taxable income. Thus, if you live in a recourse state, such as Massachusetts, the only way to avoid tax consequences following a short sale is to qualify for a tax exemption. The most common exemptions are insolvency and bankruptcy. To prove insolvency, your total debts have to be greater than the total fair market value of your assets. A lesser known exemption, and one that is due to expire at the end of 2012, is the Mortgage Debt Relief Act of 2007. According to the Debt Relief Act, a homeowner may exclude the forgiven debt as taxable income if you can prove to the IRS that the indebtedness was incurred on your "qualified principal residence." Most homeowners qualify for this exception. The following paragraphs will explain why the IRS considers forgiven debt as taxable income and how to qualify for a tax exemption following a short sale.

The IRS Treats Forgiven Debt As Taxable Income

According to current tax laws, if you owe a debt to a third party and they cancel or forgive that debt, the IRS considers the canceled debt as “taxable income.” In the case of a mortgage loan, if you don’t repay your debt, you will be taxed on the amount of the money you failed to repay the lender, commonly referred to as the loan deficiency. In other words, if default on your loan, and the lender waives their right to seek repayment, the unpaid loan proceeds are converted into taxable income because you no longer have the obligation to repay the lender.  Thus, following a short sale in which the lien holder relinquishes their right to collect the deficiency amount, they are obligated to report any forgiven debt to the IRS on a Cancellation of Debt form 1099-C. Individuals are similarly required to report the forgiven debt to the IRS on Tax Form 982 and attach the form to your tax return.

Exceptions To The Rule

As mentioned above, the only way to exclude forgiven debt from taxable income is to qualify for a tax exemption. Unless you can prove insolvency or file for bankruptcy, the tax implications of a short sale will primarily depend on whether the property being sold is your primary residence and, if so, whether you qualify for a tax exemption. The most common scenarios when cancellation of debt is not taxable income involve the following:

• Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007; The Act applies only to forgiven or canceled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.  The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing separately. The Debt Relief Act expires at the end of 2012.
• Bankruptcy: Debts discharged through bankruptcy are not considered taxable income;
• Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets;
• Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income; and
• Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.  However, it may result in other tax consequences. It is important to determine whether your jurisdiction is considered recourse or non-recourse.

Qualified Principal Residence Indebtedness

The  Mortgage Forgiveness Debt Relief Act of 2007 is the most common exception to the rule that canceled debt is taxable income.  According to the Debt Relief Act, taxpayers may exclude debt forgiven on their "qualified principal residence" if the balance of their loan is $2 million or less. Qualified principal residence indebtedness is limited to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. Thus, even debt incurred as a result of a refinance loan will qualify for this exclusion, but only to the extent that the principal balance of the old mortgage would have qualified.  In other words, if the debt forgiven was a result of a short sale of your qualified principle residence, and you never refinanced, you will qualify for the tax relief.  If, however, you took out a refinance loan on your principal residence, you will qualify for tax relief only up to the principal amount of the original mortgage.  This is a very important consideration and one that is overlooked by many so- called experts. Debt forgiveness on second homes, rental property, business property, credit cards or car loans does not qualify for the tax-relief provision of the Debt Relief Act.  The Debt Relief Act of 2007 is set to expire at the end of 2012.

Recourse Versus Non-Recourse States

Given the recent popularity of short sales, it bears mentioning that some states, such as California and Arizona, are non-recourse states, meaning that forgiveness of debt in non-recourse states generally does not result in taxable income. The lender's sole recourse would be possession of the home, not repayment of the loan. This is not the case in Massachusetts. Massachusetts is a recourse state, meaning that lenders have the right to seek a deficiency judgment against a homeowner who defaults on a loan obligation. Thus, the lender will decide to either pursue the deficiency judgment against the homeowner or they will agree to cancel the remaining debt. If they choose to cancel the debt, the former homeowner will suffer tax consequences as a result of a short sale unless they provide the IRS with proof that they qualify for one of the aforementioned tax exemptions.

Tax Consequences Following a Short Sale

In summary, the general rule states that a homeowner will suffer tax consequences following a short sale because the IRS treats the forgiven debt as taxable income. The only way to avoid tax liability following a short sale is to qualify for the principal residence exemption, prove insolvency or file for bankruptcy. Regardless, the important thing to remember is that all of the exemptions require the homeowner to take affirmative action on their subsequent tax returns. Your lender is required to issue a 1099-C Form following a short sale.  It is your responsibility, however, to prove to the IRS that you qualify for a tax exemption by filing Tax Form 982 . Tax liability is not negotiable, you either qualify or you don’t. You should never, under any circumstances, take a lender’s word that a short sale will not result in tax consequences. In fact, if the lender is agreeing to waive their deficiency rights, they are required to issue 1099-C stating that they canceled your debt. The IRS, in turn, will treat that canceled debt as income unless you prove to them that you qualify for an exception. Regardless, you should always consult with a local attorney and/or tax professional regarding your specific situation in order to determine whether a short sale will result in tax liability or legal consequences.

For more tax information regarding cancellation of debt, including detailed examples, please see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

Related Posts:

Short Sale Tax Consequences: Understanding Qualified Principal Residence Indebtedness

How Does A Short Sale Affect Your Credit Score

The Mortgage Forgiveness Debt Relief Act 2007

About the Author: Greater Boston Short Sales, LLC (GBSS) is Massachusetts’ leading short sale negotiator. GBSS assists buyers, sellers, real estate agents and attorneys with getting their short sales closed. Contact us today if you are a homeowner facing foreclosure or a Realtor seeking assistance with a short sale transaction. GBSS is a MARS provider. Please read our disclaimer HERE.

If you are considering a Massachusetts short sale, and would like a free short sale consultation, please call my office to schedule a meeting or a telephone consultation at (617)264-0376.

The short sale market in Winchester/Frederick County, VA is alive and well.  The current market for both city and county offers 555 active listings.  Of that number, 55 are currently listed as potential short sales.  In the Frederick County listings, short sales make up 9% of the 443 current active listings.

With the combined area of Winchester City and Frederick County, short salesmake up between 9-11% of the overall available active listings.  Foreclosuresmake up another 9% of the overall listings.  That leaves 80+% of available listings that fall into the fair market category.  That high number of fair market properties are as likely to give support to  short sale and foreclosure prices as the reverse.

The price ranges for short sales in theWinchester / Frederick County area range from $69,900 - $589,433.  Both high and low figures can be found in Frederick County with it's higher number of overall properties, as well as higher numbers of short sales and foreclosure listings.

The average price range for a Frederick County short sale is $178,766.  That property is off it's original list price by 16%, and it has been on the market for 88 days.  In Frederick County, the days on the market range from 722 to 1. Winchester averages vary between 487 - 1.  The longer number of days on the market may signal that distressed homeowners have found a way to continue to support an upside-down mortgage while attempting to short sale a property closer to the payoff.

The pace at which properties are moving through the local market and the limited number of property sales indicates that the ratio of buyers to sellers is still leaning in the buyer's favor.  That presents many buying opportunities for  savvy buyers, but it places a great deal of pressure on distressed homeowners who are trying to get out from under a house that is currently underwater. 

Even though the high ratio of fair market properties available in the Winchester / Frederick County Virginia area may signal good news for homeowners hoping to maintain some of their previous equity in a sale - it means little for a distressed homeowner who is still looking for a little relief.

If you're in the Winchester / Frederick County, Virginia area and you need to sell your home through a short sale, don't give up hope.  We can help get you through the process and on to a fresh start with a lighter load.  Give Cornerstone Business Group, Inc., a call and we can discuss your options.

Short Sales in Winchester-Frederick County VA - February 2012

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Blossom Valley Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  1141

Short Sales: 412

REO:            271

Distressed sales as a percentage of total sales: 59.8%

Compare to 2010

Total sales:   1125

Short Sales:   366

REO:            271

Distressed sales as a percentage of total sales:  56.6%

My conclusion:

The percentage of distressed properties in Blossom Valley is a little higher in 2011 over 2010. A   59% distressed property sale percentage is enough to affect values significantly.  This may be one of the reasons home prices in San Jose are predicted to fall a little in 2012 while other parts of the Silicon Valley are appreciating.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Almaden Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  355

Short Sales: 39

REO:            20

Distressed sales as a percentage of total sales: 16.6%

Compare to 2010

Total sales:   384

Short Sales:   28

REO:            14

Distressed sales as a percentage of total sales:  10.9%

My conclusion:

The percentage of distressed properties in Almaden is higher in 2011 over 2010. While a 16.6% distressed property sale percentage is probably not enough to affect values, i think the increase may be indicative of a nationwide trend of higher priced homes being the fastest growing distressed segment. Many of these higher priced homes were purchased with no down payment and interest only loans. When the interest only loan period is up the payments can double. With no equity refinancing is not possible, and some of these home owners are in trouble.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Short sale is one of those options that help you avoid a foreclosure. Yet, you lose your home. However, this is considered to be a better option than foreclosure because the hit on the credit is lower than that of a foreclosure. The plunging home values have resulted in increased number of foreclosed homes and short sales. On the other hand, this spike in the number of short sale and foreclosed homes has also resulted in an increase in the number of mortgage and short sale and foreclosure scams.

Why is there an increase in short sale homes?

The main reason for the increase in the number of short sale homes is mainly because of the lowered affordability of the homeowners. In addition, the home values too have plunged considerably in the past three to four years.

So, most of the people opt to short sale their homes. These seem to be a good option for the lenders too. The short sale helps the homeowners meet the high mortgage obligations by simply making room for them to move on. On the other hand, these short sale transactions also help the lenders by abating the financial losses along with removal of the liabilities of the property which has been lying empty for several months on end.

Who can be scammed in short sale?

In case of a short sale, all of the parties involved can be scammed by one or the other party. It can be the buyer of the short sale home or the lender or the seller or the secondary lender if involved. One party can scam the other. There are various types of scams involved in short sale and these are:

Undisclosed payments – With regards to this scam it can be said that the seller, the buyer and the lender all may get wronged in this situation. The main problem is that in case of a short sale, there can be payments involved which is actually outside the escrow or the actual settlement agreement. If a secondary lender is involved, the primary lender can cap payments to them. Then, the secondary lender may request payments outside the escrow from over-motivated sellers and buyers. You as a seller or buyer may be ready to pay the extra to get seal the deal. So, you are going to become a party to the fraud and scam.

Predatory negotiators – In this case, it is mainly the buyer and the seller who may get scammed. The scammers here are the short sale negotiators who pose to help out both the seller and the buyer party. They get commissions but actually do nothing much in return. Thus, some states like California, Oregon and Washington now require the negotiators to be licensed through the state agency.

Misinterpretation of the property value – Misinterpretation of the property value which is also known as flopping can occur both to the lender and the seller. In this case the person scamming others is mainly the buyer who can also be a real estate agent. In this, the scammer makes a low offer by providing an artificial low valuation of the real estate property.

How can you avoid getting scammed?

There are various ways in which you may be able to avoid getting scammed while buying or selling a short sale home. First of all, it is important for you to be aware of the rules associated with the short sale. In addition, you should also be aware of the scams associated with short sale. Furthermore, in case you are planning to hire any negotiator, remember to contact the state's agency so as to find out the licensed short sale negotiators. Other than this, you should also avoid making any out of the agreement payment even if you are keen on selling or buying the property.

I have sent 3 powerful, demanding, and bank benefiting emails to this Impact Companies-Property Group. I asked to be escalated to the next level. All she keeps repeating to me is thats "ALL" we pay out of OUR proceeds!!!! Do you still want to continue???? I so much want to say NO!!! I don't want to continue and you can stick it where the sun doesn't shine!!! But I haven't yet. 

Here is what I have learned- Impact Companies is an investment group that does buy notes and serves lenders and other property management programs. In the meantime I have researched and found no where that the note was transferred to them. So I guess they are the servicing company even though she claimed that they owned the note. Now last week I also learned that GMAC sold the note to Deutsch Bank. So I have continued to ask my short sale attorney why can't we drop Impac and work directly with Deutsch Bank. She said Impac is still servicing the note. Ba hum bug. What do you all think???

Next everyone beware. BB&T, Bank Atlantic and Regions (esp with their equity loans) are an absolute BEAR to deal with. They are suing my clients personally, outside of any foreclosure actions. My clients had to hire a separate foreclosure attorney to respond to the lawsuit. They are asking for a judgement of the full loan amount which is now $240,000. In the meantime GMAC has approved our contract for $210,000. Their note is for $325,000.

BB&T was $22,500 in order for them to let us close. However, GMAC will only let them receive $10,000. So now I have to get the buyers to bring in an additional $12,500 and negotiate with BB&T to accept maybe $50,000 from my sellers in addition to the $22,500 they will be getting. I have to do all this and sacrafice 1% of my commission. AND the bpo came in at $180,000 and I have them an offer of $210,000. So tell me again why I have to give up 1% of my commission. 

First off do any of you know a CEO or significant person to talk to at BB&T and also Impac??? I need names and numbers now. I might hurt somebody if I don't get that soon. thanks everyone.

If you are an Eglin Air Force Base or Hurlburt Field seller thinking about HAP, (military Homeowners Assistance Program), you may not be aware that effective February 1, the GAPS (Government Assisted Private Sale) has ended.  Since we are talking "military", there are a lot of acronyms, so I'll start with a quick explanation.  HAP is the program run by the Army Corps of Engineers that was expanded to assists U.S. military service members  who have Permanent Change of Station (PCS) assignments, with "upside down mortgages" avoid foreclosure or short sale. Basically, HAP will cover the shortfall (part of mortgage balance left over after net proceeds from sale) at closing if the service member qualifies for the program.

Formerly, there were three types of HAP sales: Government Acquisition, Private Sale, and Government Assisted Private Sale (GASP).  Here is a quick, simplified explanation of each:

Government Acquisition:The U.S. will buy the subject property frthe qualifying service member, and simultaneously pay off the mortgage balance not covered by the sale, selling the property to the buyer the service member found (normally through his Realtor).

Private Sale: The qualifying service member sells his home and covers the mortgage shortfall himself. The U.S. will reimburse the service member some time after closing.  The reimbursement calculation is simplified as: 90% of your prior fair market value (your purchase price plus costs of improvements), add  7% for closing costs, then subtract out your new purchase price and mortgage payoff, plus any buyer credits and actual closing costs.  Using this private sale method, some military members can  recoup more of their lost equity, dollars they have actually used for downpayment or improvements, as compared to the Government Acquisition, which will just pay off the mortgage deficit.  The caveat with Private Sale, is that you would have to cover the entire shortfall at closing, then “wait” for the U.S. reimbursement check.  That process can  takes weeks or months.

Government Assisted Private Sale (ended): Instead of waiting for your U.S. reimbursement check after a “Private Sale”, you were paid by the Government at closing.  This program has ended, effective February 1, 2012, per my contacts at HAP. In fact, my latest HAP closing on January 31, was a GAPS, and we were told any extensions to the closing date would remove the seller from the program.

So, what does this mean to you, the Eglin AFB or Hurlburt Field airman?  You still have two HAP options available, Government Acquisition or Private Sale.  In any event, the good news is that if you need to sell your home, and qualify for HAP, you can avoid foreclosure, short sale or VA Compromise Sale, and keep your credit score intact.

Do you have questions? Email me at itswendy@rulnickrealty.com

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

Eglin AFB and Hurlburt Field VA Compromise, HAP, Short Sale Help

Wendy Rulnick, Broker, is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". She has successfully helped hundreds of families avoid foreclosure through short sale along the Emerald Coast of Florida. Wendy Rulnick is knowledgeable in all aspects ofshort sale, including VA Compromise Sale, FHA HUD pre-foreclosure sale, HAP military PCS, HAFA, Bank of America Coop program and more.  She is also co-founder of www.ShortSaleSuperstars.com and short sale instructor to agents across the United States. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Panama City Beach, Eglin AFB, Hurlburt Field. 

JPMorgan Chase & Co. (JPM), Wells Fargo & Co., Citigroup Inc., Ally Financial Inc. and Bank of America Corp. are seeing the light now paying big bucks to Homeowners to Avoid Foreclosure, with a Short Sale…

Recently, BoA sent out letters to over 19,000 Florida homeowners as part of a pilot program. The program is offering incentives of as much as $20,000, or 5 percent of the unpaid loan balance, BoA spokesperson, said in an e-mail. The program expired in December and the Charlotte, North Carolina-based bank hasn’t decided whether to introduce it in other states, she said. About 15 percent of the homeowners agreed to participate in the program, she said. 

It seems that the size of the payment may have little or nothing to do with sales price. JPMorgan gave one Phoenix homeowner $20,000
after she sold her property in June for $32,000, according to thee real estate agent who represented the seller and shared a copy of the settlement sheet with News agency. The bank also agreed to forgive more than $70,000 in debt, she said.

It appears that the robo-signing scandal is pushing banks to look closer at the short sale being a better alternative to foreclosures.  Banks have decided the short sales are faster and less costly than foreclosures, which have slowed in response to regulatory probes of abusive practices like robo-signing scandal. Banks are nudging potential sellers by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing large cash incentives.

We are looking into the where and hows...

It’s a sign of the times!

Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled. Here in Phoenix, Arizona many owners have done Short Sales in order to Avoid Foreclosure.

 With the upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll.  Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosurebefore this real estate crisis runs its course.

 The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty.  And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosureeven complicates employment prospects.

 The impact of foreclosure in Arizona is huge and the sad fact is that it’s often avoidable with other options and many cases it's usually a Short Sale.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

 Get your FREE REPORT.....

Among the most important facts to keep in mind: the sooner help is sought, the better the options.

To find out if a Phoenix ShortSale is right for you...Click here for your FREE REPORT NOW .....

These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact me today and let’s get started.

 

Do you live in Rocklin CA? How about Granite Bay CA? Or Lincoln CA maybe? Folsom CA? Well, even if you live in El Dorado Hills CA or Roseville CA this message may help you if your home mortgage is underwater or you have considered a Short Sale.

BLOG SERIES – “What Does a Notice of Default Mean?” CALIFORNIA SHORT SALES FAQ's RETURNS!!! for Rocklin, Roseville, Granite Bay, Folsom, El Dorado Hills, Lincoln and Sacramento CA

As a Rocklin CA Short Sale Listing Agent serving places like Rocklin CA, Granite Bay CA, Folsom CA, Roseville CA, El Dorado Hills CA, Citrus Heights CA, Sacramento CA and Lincoln CA... And others in the area, I get many questions regarding the process, lenders, what course of action should be taken... There are an endless number of questions that come up. So, I decided to start a BLOG series in 2011 regarding those Short Sale questions that I get asked. Here s a link to 10 Short Sale Questions and Answers and my answers BLOGGED previously.

That said here is the next question I hear from Sellers & General Public a lot:

"What does a Notice of Default mean?" ANSWER – In California, your first missed payment is technical default.  However, most loan servicers (i.e. – Bank of America and Wells Fargo are Loan Servicers) do not begin the formal process until the third payment is missed.  A Notice of Default is a document filed with the county recorder officially beginning a non-judicial foreclosure timeline. Once you receive a Notice of Default, foreclosure has begun.  You have approximately 111 days before the property will be SOLD AT AUCTION or taken by the bank if nothing is done to prevent foreclosure.  After a Notice of Default, the next document received will be a Notice of Trustee Sale.  We will summarize the Notice of Trustee Sale in a later post.  If you are not making your mortgage payment, it is highly recommended that you seek advice from a qualified Realtor or Real Estate Attorney immediately.

Do you hold a government position, are you in the U.S. Military or are you a Federal contractor? These and many other jobs often require asecurity clearance. If you are considering short sale or foreclosure, proceed with caution or your position may be at risk.

If you currently hold a security clearance, such as DOD  “Confidential”, “Secret” or “Top Secret”, and work for the Federal Government, at Eglin Air Force Base or Hurlburt Field, you may already know a credit check is one of the standard procedures to obtain your clearance.  A short sale, foreclosure, or deed in lieu of foreclosure, as well as missed mortgage payments, can all affect whether or not you retain your clearance.  

“Why should I care?” you might ask, especially if you are not in the military.  According to the Washington Post, over 850,000 Americans hold security clearances and one-third are NOT employed by the government.  Also, those who hold security clearances are among the top wage earners in the United States.  You don’t have to be a technocrat or engineer to require a security clearance. If you are a janitor, fire fighter, police officer, or administrator in a secure facility, for example, at an international airport, you may need a clearance.

Before proceeding with a short sale, I ask my potential sellers to check with their current or FUTURE security or personnel officer to find out how a short sale may affect their position.  Even though many have received the “OK for short sale, but not foreclosure or deed-in-lieu of foreclosure”, a few have not.  I recently had an airman from Fort Walton Beach Florida inquire about short sale.  He told me his new position would be overseas with an international military group, representing  the United States. I asked that he check with his security officer before proceeding with a short sale. The answer? “No way.” He would have lost his position if he had gone forward. Instead, he is going to rent out his property. (By the way, that potential seller had interviewed two agents, and I was the only one who mentioned this possibility.) 

How about another “at risk” scenario? I had a former short sale seller apply for an overseas position in the Middle East as a U.S. contractor after short sale.  All applications, interviews, etc., had been completed except for the credit check. The position was denied. Why? Short sale.  I don’t want to frighten anyone away from short sale who needs a security clearance, as these are the less frequent outcomes. But, I want to put out a strong warning, consult your security officer before proceeding.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: itswendy@rulnickrealty.com

Niceville Florida Short Sale Help

Wendy Rulnick, Broker, is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". She has successfully helped hundreds of families avoid foreclosure through short sale along the Emerald Coast of Florida. Wendy Rulnick is knowledgeable in all aspects ofshort sale, including VA Compromise Sale, FHA HUD pre-foreclosure sale, HAP military PCS, HAFA, Bank of America Coop program and more.  She is also co-founder of www.ShortSaleSuperstars.com and short sale instructor to agents across the United States. Wendy Rulnick sells real estate in Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Panama City Beach, Eglin AFB, Hurlburt Field. 

When it comes to staying in a home in a new place, the first question that comes in your mind is whether to rent a home or buy a home. While you take out a home loan for owning a home, you have to take the best step forward so that you don't default on the monthly payments for which you have to take out yet another refinance loan. You've probably heard various statements that claim owning a home as a better option than renting it. But what are the financial implications that will support this statement and make a prospective home-buyer feel in favor of it? Read on the concerns of this article to know more.

The monthly costs of owning a house

When you own a house, the monthly costs that are associated with it are huge. If you add all the expenses of owning a house, this may be shocking enough for you. There are a number of fixed costs that you have to bear when you own a home. Have a look at some of them.

The home insurance payments:Yes, the mortgage loan lenders won't ever let you complete the deal on the mortgage unless you agree to pay the insurance payments. Therefore, you need to shop wisely. Though this is sometimes required by the homeowners, yet always it isn't a necessity. But if the mortgage lender insists you, you can easily take it out and then you're supposed to bear the payments throughout the term.

The PMI payments:If you haven't saved enough money and you're not able to pay down at least 20% of what you’re borrowing, you have to pay the PMI or the Private Mortgage Insurance. This is a financial tool that protects the lenders from the risk of the borrower's default. This may tack on a couple of hundred dollars every month.

The property taxes:Yes, these are something that can't be hidden either. Since you're staying in that property, you have to pay the taxes on the typically assessed value of the house. The property taxes can add hundreds of dollars to the already scheduled monthly payments.

Utilities and maintenance costs:When you're shifting from an apartment to a house, the extra square footage may translate into a huge utility bill. Apart from the utility bills, the maintenance costs are also something that you need to take into account when you calculate the financial implications of homeownership.

The monthly costs of renting a house

It is not that there are no costs in renting a home. However, most experts are of the opinion that the costs that you have to bear when you rent a home are much lower than that when you own a home. Check out the financial implications of renting a home.

The rent payments:In case of renting a home, your property taxes and insurance costs are zero. The rent that you have to pay will be clearly mentioned in the lease and will be paid at the interest rate stated in the lease. However, whenever you default on the rent payments, the owner may make any kind of changes to the agreement.

The utility and the maintenance costs:The utilities will usually vary from the home to the apartment size and to the highest extent, in case of rented apartment; you may just have to pay the electricity and the telephone bills. On the other hand, the maintenance costs are almost zero as this is the responsibility of your landlord.

Renter's insurance payments:Yes, you may sometimes need the renter's insurance payments and this may take away 33-45 dollars in a month.

Based on the above mentioned analysis, renting an apartment is certainly cheaper in comparison to owning a home, in terms of costs. However, when you rent an apartment, you can't build equity; rather your equity is being released. This is a disadvantage of renting a house. But when you're taking the final decision, formulate a budget and then take the best decision according to your needs.

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Cambrian Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  656

Short Sales: 130

REO:            89

Distressed sales as a percentage of total sales: 33.45

Compare to 2010

Total sales:   750

Short Sales:   114

REO:            104

Distressed sales as a percentage of total sales:  29%

My conclusion:

The percentage of distressed properties in Cambrian is higher in 2011 over 2010. Also a 34% distressed property sale percentage is absolutely probably not enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales. This is being seen all over the bay area.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

DiscussionsRepliesLatest Activity

Commission Dispute Question: I submitted an offer on a short sale which took 2 months for approval and were schedule to close, however, a day before closing t… Started by Tavo	9	42 seconds ago Reply by Bryant Tutas
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Approval of a Trust Has anyone had a short sale approved for a property that was owned by a trust? If so, what documents did the lender require? Started by David Zagorsky	1	1 hour ago Reply by Bryant Tutas
I have personally bonused being part of the Advanced Traing Group! What is keeping you from joining? Just having help closing a deal made it worth it taking the worry and pain out of the paperwork, especially HUD-1 issues. Bryant and Wendy… Started by Teresa Simon	1	1 hour ago Reply by Bryant Tutas
HAFA vs. non HAFA What's the difference between a "HAFA approved" and a conventional short sale? Started by Eddie Kearns	3	18 hours ago Reply by Smitty
Looking for a good basic short sale program for organizing files w/o the hype & program salesmanship. We, an attorney paralegal and myself sat and watched as much of a webinar as we could bare today.  With the reinvention of the mls, picture… Started by Teresa Simon	7	19 hours ago Reply by Joseph Alfe
How to get the smaller deals closed Looking for tips on getting higher commissions paid.  On lower priced listings ($65k & below).  The lenders will not pay more then 6% o… Started by Jeanine Whitehead	4	19 hours ago Reply by Joseph Alfe
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It's the beginning of the year so time for the round-up of last year's distressed property sales in Los Gatos. So here's what happened:

Single family and condo townhomes :

Total sales:  421

Short Sales: 42

REO:            24

Distressed sales as a percentage of total sales: 15.7%

Compare to 2010

Total sales:   489

Short Sales:   36

REO:            38

Distressed sales as a percentage of total sales:  15.1%

My conclusion:

The percentage of distressed properties in Los Gatos is virtually the same  between 2011 and 2010. Also a 15% distressed property sale percentage is absolutely probably not enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in Milpitas. So here's what happened:

Single family and condo townhomes :

Total sales:  513

Short Sales: 150

REO:            112

Distressed sales as a percentage of total sales: 51.1%

Compare to 2010

Total sales:   535

Short Sales:   131

REO:            140

Distressed sales as a percentage of total sales:  50.1%

My conclusion:

The percentage of distressed properties in Milpitas is virtually the same  between 2011 and 2010. Also a 50% distressed property sale percentage is absolutely large enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Anybody have any luck with Short Sales when 1st and 2nd was part of a BK?

It's the beginning of the year so time for the round-up of last year's distressed property sales in Los Altos Hills. So here's what happened:

Single family and condo townhomes :

Total sales:  97

Short Sales: 4

REO:            6

Distressed sales as a percentage of total sales: 10.3%

Compare to 2010

Total sales:   81

Short Sales:   5

REO:            1

Distressed sales as a percentage of total sales:  7.4%

My conclusion:

The percentage of distressed properties in Los Altos is higher  2011 over 2010. 7-10% distressed property sale percentage is just beginning to affect values but I think there are other reason Los Altos Hills values are decreasing that are more important than short sales and foreclosures. The area is just not as popular these days as Atherton and Palo Alto are for the high end buyer.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194