tag:blogger.com,1999:blog-74238119639116770922024-03-13T03:25:01.523-07:00Short Sale NewsletterLQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.comBlogger72125tag:blogger.com,1999:blog-7423811963911677092.post-29781856802887198312016-02-03T12:14:00.001-08:002016-02-03T12:14:12.987-08:00Much anticipated Mortgage Debt Relief Extension signed through 201, with provisions ...It has been rep[orted that President Obama signed a bill on December 18, 2015, that extended the
Mortgage Forgiveness Debt Relief Act through December 31, 2016. The
extension also retroactively covers mortgage debt cancelled in 2015. In fact, Turbo tax is reporting the same and you can read more information here: https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/How-to-Avoid-Taxes-on-Canceled-Mortgage-Debt/INF12033.html<br />
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The <span itemprop="about headline keywords name">Mortgage Forgiveness Debt Relief Act</span> of 2007 (<abbr title="Mortgage Forgiveness Debt Relief Act">MFDRA</abbr>) protects <span itemprop="audience">homeowners</span> who have undergone the <span itemprop="keywords">short sale process</span> from being taxed on the amount of their <span itemprop="keywords">home mortgage debt</span> that had been forgiven provided certain provisions are met. The recent extension has been met with open arms by many Owners patiently awaiting the signing.<br />
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<b>If you are interested in learning more about Short Sales, consult an Attorney or CPA for tax advice however your next best option is to work with a Realtor who is experienced to ensure the best possibility for success in your endeavor.</b></div>
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<b>Roger A. Sullivan</b></div>
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<b>Roger@ShortSaleSully.com</b></div>
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<b>760-610-3245</b></div>
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-78959887408271852542015-08-14T14:22:00.001-07:002015-08-14T14:22:09.803-07:00City and IID need help today !!!<table align="left" border="0" cellpadding="0" cellspacing="0" style="-webkit-text-stroke-width: 0px; background-color: white; border-collapse: collapse; border-spacing: 0px; color: black; font-size-adjust: none; font-stretch: normal; font: 12.09px/14.88px "Helvetica Neue", Helvetica, Arial, sans-serif; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; width: 100%px; word-spacing: 0px;"><tbody>
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<tr><td style="border-collapse: collapse; margin: 0px; padding: 0px 7px 0px 0px;" valign="top" width="20"><a href="https://nextdoor.com/profile/5064285/?is=npe&ct=QwMSKbSteyfMceBPxwCzTB2SNzHM3bTR78_sCoVItfc5iBVedlROFftF-OY7nx21&link_source_user_id=2673747&mobile_deeplink_data=action%3Dview_profile%26profile%3D5064285&lc=773" style="color: #0066cc; text-decoration: none;" target="_blank" title="This external link will open in a new window"><img border="0" height="20" src="https://d3dqvga78raec5.cloudfront.net/user_photos/14/3f/143fd8f97b30e027a3330ba174bebf73.jpg.40x40.jpg" style="background-color: #f4f4f4; border-collapse: separate; border-image: none; border-radius: 2px; border: 0px currentColor; display: inline-block; padding: 0px; text-decoration: none; vertical-align: top;" width="20" /></a></td><td style="border-collapse: collapse; margin: 0px; padding: 0px;"><a href="https://nextdoor.com/profile/5064285/?is=npe&ct=QwMSKbSteyfMceBPxwCzTB2SNzHM3bTR78_sCoVItfc5iBVedlROFftF-OY7nx21&link_source_user_id=2673747&mobile_deeplink_data=action%3Dview_profile%26profile%3D5064285&lc=771" style="color: #9a9a9a; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px; font-weight: normal; line-height: 19px; text-decoration: none;" target="_blank" title="This external link will open in a new window">Tustin Larson</a><span style="color: #9a9a9a; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px; font-weight: normal; line-height: 19px;">,<span class="Apple-converted-space"> </span></span><a href="https://nextdoor.com/news_feed/?link_source_user_id=2673747&post=14603004&ct=QwMSKbSteyfMceBPxwCzTB2SNzHM3bTR78_sCoVItfc5iBVedlROFftF-OY7nx21&is=npe&mobile_deeplink_data=action%3Dview_post%26post%3D14603004&lc=772" style="color: #9a9a9a; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px; font-weight: normal; line-height: 19px; text-decoration: none;" target="_blank" title="This external link will open in a new window">City of La Quinta<span class="Apple-converted-space"> </span></a><span style="color: #24a562; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 12px; font-weight: 500; line-height: 12px; padding-left: 2px; text-decoration: none;">AGENCY</span></td></tr>
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Hello Residents - IID has asked the City to pass on the following news release:<div style="height: 7px; margin: 0px; padding: 0px;">
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The Imperial Irrigation District is requesting a reduction in energy usage today during the critical hours of 1-7 p.m. as hotter temperatures drive energy demand.<div style="height: 7px; margin: 0px; padding: 0px;">
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“If energy usage is not reduced, IID may be forced to institute rolling brownouts this afternoon,” said Marion Champion, IID spokeswoman. “Our system was at peak capacity yesterday and with hotter temperatures in the forecast today we are asking all of our electrical customers to conserve.”<div style="height: 7px; margin: 0px; padding: 0px;">
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IID’s electrical grid sustained significant damage during a severe summer storm last week, and while the district has restored power to the area, it is important that the energy system is not overtaxed. IID asks customers to shift energy-intensive tasks – like laundry and dishwashing – to off-peak hours and conserve energy throughout the day. This will alleviate pressure on the system and help maintain reliability.<div style="height: 7px; margin: 0px; padding: 0px;">
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On Aug. 6, a severe summer storm damaged IID’s electrical system in the eastern Coachella Valley making more than 100 transmission and distribution poles inoperable and leaving hundreds of customers in the Mecca/Thermal area without power for as long as three days. Crews worked around the clock to construct temporary infrastructure and bring the power back on. Final repairs may take as much as one or two months.<div style="height: 7px; margin: 0px; padding: 0px;">
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The following suggestions can help reduce summer energy use:<div style="height: 7px; margin: 0px; padding: 0px;">
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Set your thermostat to 78 degrees or higher.<div style="height: 7px; margin: 0px; padding: 0px;">
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Develop a routine that allows you to avoid the use of major energy-consuming appliances like washers, dryers and dishwashers between the hours of 1 p.m. and 7 p.m.<div style="height: 7px; margin: 0px; padding: 0px;">
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Remember to have your air conditioner serviced annually and change filters monthly. Seal any leaks in your cooling ducts, install weather stripping around doors, and make sure your fireplace damper is closed so cool air doesn’t escape<div style="height: 7px; margin: 0px; padding: 0px;">
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Use floor and ceiling fans or an evaporative cooler to help keep your home cool.<div style="height: 7px; margin: 0px; padding: 0px;">
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Use awnings, solar screens, or trees to keep ultraviolet rays from hitting windows.<div style="height: 7px; margin: 0px; padding: 0px;">
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Close windows and doors when the cooling system is running.<div style="height: 7px; margin: 0px; padding: 0px;">
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For more conservation tips, please visit<span class="Apple-converted-space"> </span><a href="http://www.iid.com/" rel="nofollow" style="color: #067cbe; text-decoration: none;" target="_blank" title="This external link will open in a new window">http://www.iid.com</a></div>
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<a _anchor="#" href="javascript:void(0);" style="color: #9a9a9a; cursor: default; text-decoration: none;">Aug 14<span class="Apple-converted-space"> </span></a><span style="color: #9a9a9a; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px; font-weight: normal; line-height: 20px;">in<span class="Apple-converted-space"> </span><a href="https://nextdoor.com/general/?lc=15&ct=QwMSKbSteyfMceBPxwCzTB2SNzHM3bTR78_sCoVItfc5iBVedlROFftF-OY7nx21" style="color: #9a9a9a; font-family: "helvetica neue", helvetica, arial, sans-serif; font-size: 14px; font-weight: normal; line-height: 20px; text-decoration: none;" target="_blank" title="This external link will open in a new window">General</a></span><span class="Apple-converted-space"> </span>to City of La Quinta</div>
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LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-82208817928757738622015-07-03T13:52:00.002-07:002015-07-03T13:52:29.775-07:00Happy 4th of July 2015<br /><span style="color: blue; font-size: x-small;"><br /></span>
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<span style="color: blue; font-size: x-small;"><span style="font-family: Trebuchet MS,Helvetica,sans-serif; font-size: xx-small;"><strong><span style="font-size: 18pt;"><em>HOPING YOU and YOUR FAMILY ARE </em></span></strong></span></span></div>
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<span style="color: blue; font-size: x-small;"><span style="font-family: Trebuchet MS,Helvetica,sans-serif; font-size: xx-small;"><strong><span style="font-size: 18pt;"><em>ENJOYING AN AMAZING HOLIDAY!!! </em></span></strong></span></span></div>
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<span style="color: blue; font-family: Trebuchet MS,Helvetica,sans-serif; font-size: x-small;"><em><span style="font-size: xx-small;"><strong><span style="font-size: 18pt;">HAVE A WONDERFUL, SAFE and</span></strong></span></em></span></div>
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<span style="color: blue; font-family: Trebuchet MS,Helvetica,sans-serif; font-size: x-small;"><em><span style="font-size: xx-small;"><strong><span style="font-size: 18pt;"> HEALTHY</span></strong><strong> </strong><strong><span style="font-size: 18pt;">4TH OF JULY!!!</span></strong></span><strong><span style="font-size: 18pt;"><br /></span></strong><strong><span style="font-size: 18pt;"><br /></span></strong><strong></strong></em></span></div>
<br /><span style="color: blue;"><img align="none" alt="4th-Of-July-Image5 5" border="0" height="271" hspace="0" src="http://img-ak.verticalresponse.com/media/9/7/b/97b8b7cd51/60dd3a8af4/5a35f8d8b4/library/4th-Of-July-Image5%205.jpg" style="height: 271px; width: 581px;" title="4th-Of-July-Image5 5" vspace="0" width="581" /></span><br /><br />
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<span style="color: blue; font-family: Trebuchet MS,Helvetica,sans-serif; font-size: large;"><span style="font-family: Trebuchet MS,Helvetica,sans-serif; font-size: x-small;"><em><strong><span style="font-size: 18pt;">GOD BLESS the USA!!</span></strong></em></span><br /><strong><em></em></strong></span></div>
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<span style="color: blue; font-family: 'Arial','sans-serif'; font-size: 12pt;">I look forward to exceeding your expectations in fulfilling your Real Estate needs.</span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">Warm regards,</span></span></div>
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<span style="color: blue;"><span style="font-family: 'Monotype Corsiva'; font-size: 20pt;">Roger A. Sullivan, Realtor </span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">CalBRE# 01236680</span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">website: </span><a href="http://rogerasullivan.com%c2%a0/" style="color: blue;" target="_blank" title="This external link will open in a new window"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt; text-decoration: none;">http://RogerASullivan.com</span></a></span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">direct: 1(760) 610-3245</span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">office: 1(760) 564-9685</span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">efax: 1(760) 459-2038</span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">Windermere Real Estate </span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">47250 Washington St. Suite B </span></span></div>
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<span style="color: blue;"><span style="font-family: 'Arial','sans-serif'; font-size: 12pt;">La Quinta, CA 92253</span></span></div>
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LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-8855091849626227932015-03-17T12:23:00.003-07:002015-03-17T12:23:57.616-07:00Happy St. Patrick's Day<div class="separator" style="clear: both; text-align: center;">
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<br />LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-87953299521065269132014-12-17T18:42:00.002-08:002014-12-18T07:53:25.533-08:00Hear ye! Hear ye !We have been holding our breath for so long wondering what would be happening here in California ... If you have any questions after you read the news here ... Call me. text me, or email me ... I am here to help ... Well - Here it is <b>HOT OFF THE PRESS</b> ...
http://www.nationalmortgagenews.com/news/regulation/senate-passes-tax-bill-that-includes-key-mortgage-deductions-1043384-1.html
Roger A. Sullivan
760-610-3245
Roger@ShortSaleSully.com
http:ShortSaleSully.comLQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-4937855407772221832014-11-08T17:46:00.001-08:002014-11-08T17:46:11.661-08:00Help for those considering or in a Short Sale
Distressed California Homeowners May Qualify for California's Keep Your Home California Transition Assistance Program (TAP)
If your financially distressed California clients can no longer afford their homes and are pursuing a short sale or a deed in lieu of foreclosure, they may be eligible for financial help with their relocation to alternative housing.
The funds come from the Transition Assistance Program (TAP), part of the Keep Your Home California Program.
The state of California is providing up to $5,000 in transition assistance to qualified homeowners who can no longer afford to stay in their homes. You can help by advising your distressed clients that they must:
•Apply for the funds through their state's website or by calling 1.888.954.5337.
•Maintain their property until their house is sold or returned to the lender via a negotiated deed in lieu of foreclosure.
For qualified homeowners, these state funds may be used in addition to any other transition assistance that the homeowner may receive by participating in the Federal Home Affordable Foreclosure Alternatives (HAFA) program or in any other preoffer short sale program.
To learn more about the Transition Assistance Program's guidelines, and how your clients may qualify, please visit that program's website at http://keepyourhomecalifornia.org
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-78370237707129167152014-11-03T16:37:00.001-08:002014-11-03T16:37:23.838-08:00Important news for Short Sale candidatesBack in April, the Senate Finance Committee approved the extension of debt relief for those attempting to sell their homes short of the indebtedness owing to their existing Lender(s). For political reasons, the item was tabled and is scheduled (at least it has been discussed) to be brought forward again after the elections are over tomorrow.
Stand by for an update !!!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-7466491718811540092014-04-30T13:26:00.000-07:002014-04-30T13:26:19.623-07:00Short Sales still active ...Homeowners are still in need of assistance and State and Federal laws are still protected them from taxation stemming from debt relief, potentially the biggest negative for those Short Selling in the past before this protection. The current situation is that protection is in place through year end so if you need assistance ... Call SHORT SALE SULLYLQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-36994712266956152012014-03-15T20:58:00.002-07:002014-03-15T20:59:36.867-07:00There's a new kind of thief in town cruising your Short Sale Open House ...Everyone is apprehensive about opening up their home to a bunch of strangers, particularly when they are not home. Open Houses are a great marketing tool, allowing prospective buyers to compare your home with their wants and needs; also allowing neighbors to get a peek if they might have a friend or relative they want to move closer to them. Before you have an Open House, you should secure any very personal and important items out of harms way whether they be highly valuable, sentimental or breakable and the new category - medicinal !!! There has been an increase in medications being removed from bedrooms, bathrooms and medicine cabinets of late to such a degree that the warnings have even been televised. Everything has value and we know how expensive prescriptions are ... someone who needs your medicine doesn't care of your loss only their gain ... and certainly kids may not even know what a drug is but will take it anyway ... so be extra careful and make sure your medications is safe along with all your other valuables ... Keep the faith !!! LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-65387774318924343562013-12-20T18:36:00.000-08:002013-12-20T18:36:06.312-08:00FINALLY, the Federal and State governments appear to have come to their senses on Short SalesHere's the link to the story from the California Association of Realtors:
<a href=" http://www.car.org/newsstand/newsreleases/2013releases/ftbclarification"></a>
and here's the story:
The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) announced that it received a letter from the California Franchise Tax Board (FTB), obtained by Board of Equalization (BOE) member George Runner, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.
Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB. Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.
“We are pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California,” said C.A.R. President Kevin Brown. “We would like to thank Sen. Boxer and BOE member Runner for their leadership in obtaining this guidance from the IRS and FTB. Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.”
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-89951554652235852642013-12-13T08:45:00.001-08:002014-03-16T11:25:31.735-07:00IRS and California Franchise Tax Boaard clarify Mortgage Debt Relief in Short SalesIRS and California Franchise Tax Board declare California distressed home sellers not liable for federal or state income tax on short sales
LOS ANGELES (Dec. 4) – The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) announced today it received a letter from the California Franchise Tax Board (FTB), obtained by Board of Equalization (BOE) member George Runner, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.
Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB. Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.
“We are pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California,” said C.A.R. President Kevin Brown. “We would like to thank Sen. Boxer and BOE member Runner for their leadership in obtaining this guidance from the IRS and FTB. Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.”
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with 165,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Compliments of C.A.R. here's the full story <a href="http://www.car.org/newsstand/newsreleases/2013releases/ftbclarification"></a>
Keep the faith !!!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-47583096115952337752013-11-04T10:12:00.002-08:002013-11-04T10:12:44.219-08:00Is the next housing bubble upon us? What is ahead ...
While many indicators suggest the housing market is on the road to recovery, some fear another bubble is already forming. Warren Buffett and Donald Trump started the stories a few months ago. DS News reported that half of all consumers fear another housing bubble is forming. Home values jumped over 12% this year. Deja Vu? Also, remember HAMP which was supposed to save homeowners from foreclosing? The numbers are startling, with 27% of HAMP modified homeowners already re-defaulting, and likely to continue to rise with stagnant job growth and rising interest rates.
The government has also taken notice, and therefore, the Treasury has extended the HAMP application period for two years until December 31, 2015. If that doesn't tell you confidence is low, then consider this. Investor and homebuyer activity has dropped off from fears that prices are rising too fast, and with rising mortgage rates, it's also getting harder for people to qualify to buy the inventory. This seems like the perfect storm, and it's very possible that we're experiencing the next housing bubble, and if things continue as is, it's likely to pop. What do you think?
Keep the faith ...LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-6253495164104704492013-09-26T08:49:00.001-07:002013-09-26T08:49:11.512-07:00Still haven't started your Short Sale? Change is in the air ...
If you have yet to commence your Short Sale endeavor, be prepared because change is in the air ...
Bank of America has announced some changes to their program to take effect October 1, 2013 ...
•New or different documentation requirements for verifying assets, income, and expenses
•Deficit Income Test (DIT) will be used to determine a homeowner's financial hardship
•Possible elimination of the financial hardship/deficit income preforeclosure sale requirement for:
◦service members who have received Permanent Change of Station (PCS) Orders, or
◦homeowners who are deemed eligible for a streamlined preforeclosure sale option
•New validation requirements for appraisals
•Different dual agency/brokerage requirement: to meet the new short sale purchase contract addendum requirements, brokers and their agents may represent either the buyer or the seller, but not both parties
While you're considering all this and how it affects you, please remember that the Federal Debt Relief Act of 2007 ran through 2012 and quite close to year end finally it was extended thru 2013. There is no conversation about it at this time. The fact that you might miss out on the largest benefit of the Short Sale process should not make you think twice about a Short Sale, it should make you call a qualified Realtor who is a Short Sale expert. looks for designations like mine ... SFR - Short Sale Foreclosure Resource and CDPE - Certified Distressed Property Expert (The better of the two).
Best of luck to you and
Keep the faith !!!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com1tag:blogger.com,1999:blog-7423811963911677092.post-64315051838195437592013-09-10T09:20:00.003-07:002013-09-10T09:20:51.460-07:00Relocation fund assistance after Short Sale/Deed-in-lieuReproduced directly from http://keepyourhomecalifornia.org/programs/transition-assistance/
The Transition Assistance Program (“TAP”) is one of CalHFA MAC’s
federally-funded programs developed to provide eligible homeowners
with transition assistance when it is determined that they can no longer
afford their home.
TAP will be used in conjunction with short sale and deed-in-lieu
programs to help homeowners make a smooth transition to housing.
Homeowners will be required to occupy and maintain the property until
the home is sold or returned to the lender as negotiated.
Program funds will be available on a one-time only basis up to $5,000
per household and can be used or layered with other CalHFA MAC
HHF programs. Funds will be sent to the servicer or homeowner after
or in connection with the short sale or deed-in-lieu of foreclosure closing.
Funds are intended to help the homeowner secure new housing
(e.g., rent, moving expenses, and security deposits) and will also be
available for transition assistance counseling services.
CalHFA MAC envisions that these monies would be used to complement
other federal or lender programs designed specifically to stabilize
communities by providing assistance to homeowners who have suffered
a financial hardship and as a result are no longer financially able
to afford their mortgage payments.
TAP is designed to target low-to-moderate income homeowners and
address the needs of a homeowner’s specific situation in lieu of targeting
certain regions or counties.
4. Program Allocation
(Excluding Administrative
Expenses)
$2,300,000.00
5. Borrower Eligibility
Criteria
• Homeowner must qualify as a low-to-moderate income house
hold, as follows:
◦ Low-to-moderate income of 120% or less of the HCD
Area Median Income (as defined by the California State
Department of Housing and Community Development),
for a family of four, in the county where homeowner resides.
Transition Assistance
Program
Summary Guidelines
2 TAP 06/2013
• Homeowner must complete and sign a Hardship Affidavit / 3rd
Party Authorization to document the reason for the hardship.
• Homeowners who have recently encountered a financial hardship
due to their military service are eligible.
• Homeowner must agree to provide all necessary documentation to
satisfy program guidelines established by CalHFA MAC.
• Mortgage loan is delinquent or at risk of imminent default as substantiated
by homeowner’s hardship documentation. Loans in
foreclosure are eligible.
• General program eligibility is determined by CalHFA MAC, the
housing counselor or servicer based on information received from
the homeowner. Program-specific eligibility is determined by
CalHFA MAC on a first-come/, first-approved basis until program
funds and funding reserves have been exhausted. Loan servicer
will implement the HHF program based on participation agreement
terms and conditions.
• Funding allocation will be tracked, monitored and performed by
CalHFA MAC in a centralized processing operation.
6. Property/Loan
Eligibility Criteria
• Current unpaid principal balance (“UPB”) of the first-lien mortgage
loan is not greater than $729,750.
• The property securing the mortgage loan must not be abandoned,
vacant or condemned.
• The applicant must own and occupy the single family, 1-4 unit home
(an attached or detached house or a condominium unit) located in
California and it must be their primary residence. Mobile homes are
eligible if they are permanently affixed to the real property that is
secured by the first lien.
7. Program Exclusions • Homeowner in an “active” bankruptcy is ineligible for TAP assistance
consideration. Homeowners who have previously filed bankruptcy
are eligible for consideration with proof of court order “Dismissal”
or “Discharge”.
• Short Sales or Deed in Lieu that are closed prior to homeowner
request to the KYHC CPC are ineligible for TAP assistance.
Transition Assistance
Program
Summary Guidelines
3 TAP 06/2013
8. Structure of
Assistance
TAP assistance will not be structured as a loan.
After December 31, 2017, any remaining or returned funds will be returned
to Treasury.
11. Estimated Number of
Participating
Households
12. Program Inception/
Duration
13. Program Leverage
with Other HFA
Programs
14. Program
Interactions with
HAMP
15. Program Leverage
with Other Financial
Resources
Approximately 460. This figure is based on loans with unpaid principal
balances ranging from $200,000 to $400,000 with an average funding of
$5,000.00.
The statewide launch of TAP was February 7, 2011 and it will continue
up to five (5) years or until funding is fully reserved.
TAP benefits may be available to the homeowner even if UMA, MRAP
and/or PRP benefits have been utilized, subject to the HHF program
maximum benefit cap of $100,000.
TAP complements HAMP and HAFA. The funds will leverage monies
being made available through HAFA. Servicer is required to follow HAFA
guidelines for allowable costs. In cases where the servicer has approved
the homeowner for a HAFA transaction, TAP dollars will be limited to
$2,000 in order to maintain the $5,000 HHF program maximum per
household.
None.
9. Per Household
Assistance
10. Duration of
Assistance
Up to $5,000 per household (average funding of $5,000.00).
Available on a one-time only basis, per household.
16. Qualify as an
Unemployment
Program
Yes NoLQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-83149885528191376562013-09-10T08:16:00.000-07:002013-09-10T08:16:10.298-07:00Short Sales May Lose Favor in California As reported in the Daily Real Estate News | Friday, September 06, 2013
Home owners in California may be less likely to consider a short sale now that the state failed to take action on legislation that would have given a tax break on short sales.
The Assembly Appropriations Committee in the California legislature did not move Senate Bill 30 out of the committee. The California Association of REALTORS® warns that inaction on the bill means that home owners who sold their homes in a short sale will have to pay state income tax on money they didn’t even receive.
The bill sought to conform California law to federal tax law. Federal tax law states that sellers cannot be taxed on forgiven debt.
However, California’s current laws state that sellers must pay state income tax on the mortgage debt that lenders forgive in a short sale. An exemption in the state did exist to this rule, but the exemption lapsed at the end of 2012 and has yet to be renewed.
CAR supported the bill and CAR officials say they were disappointed at the legislature’s lack of response on the matter. "These are real families in real financial need who may well be forced into bankruptcy by an unresponsive legislature," says CAR President Don Faught. "We hope that that the legislature will rectify this in the closing days of the session."
Source: “Short sales could lose their appeal in California,” HousingWire (Sept. 5, 2013)
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-70868460511487091172013-05-15T07:31:00.000-07:002013-05-15T07:31:06.699-07:00Financial news data
May 15, 2013
Last Week in Review
Last week brought some positive economic news. Americans filing weekly Initial Jobless Claims fell to 323,000. This was below expectations and the lowest level since January 2008. In addition, the four week moving average (which evens out any seasonal abnormalities) fell to 336,000, the lowest since November 2007.
In housing news, research firm CoreLogic reported that home prices rose 10.5 percent in March 2013 from March 2012. This was the biggest annual increase since March 2006 and the 13th consecutive increase in home prices. There was also a 1.9 percent gain from February to March and prices increased in all states except four. However, home prices remain 25 percent lower than the peak of April 2006.
What does this mean for home loan rates? Because good economic news often causes money to flow out of safer investments like bonds and into stocks, it can negatively impact home loan rates, as they are tied to mortgage bonds.
However, although home loan rates may have slightly risen, they continue to remain near historic lows.
Forecast for the week
The economic calendar is filled with several key reports this week.
We’ll get a read on inflation this week with the Producer Price Index on Wednesday and the Consumer Price Index on Thursday.
There’s a double dose of manufacturing news with Wednesday’s Empire State Index and Thursday’sPhiladelphia Fed Index.
Thursday also brings news on the housing sector with Housing Starts and Building Permits for April.
Weekly Initial Jobless Claims will also be reported as usual on Thursday.
Ending the week on Friday, the Consumer Sentiment Index for May will be released.
According to the CoreLogic National Foreclosure Report, 55,000 foreclosures were completed in March 2013. This represents a 15.8 percent year-over-year decline from March 2012. Compared to the 2010 foreclosure peak, it is a decline of 52 percent. On a month-over-month comparison, completed foreclosures were up 6.2 percent from February 2013. Completed foreclosures are an indication of the total number of homes actually lost to foreclosure.
(May 13 - 17, 2013)
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-13196604030024023732013-01-10T07:46:00.001-08:002013-01-10T07:46:39.018-08:00Relief in the New YearThe fiscal cliff package recently approved includes a provision that will help maintain a viable Short Sale market in the year 2013.
The Mortgage Forgiveness Debt Relief Act was set to expire on December 31, 2012. This act provided an exemption to the normal rule that forgiven debt is taxable income. The act allowed many homeowners to avoid income tax liability on the mortgage debt forgiven in a short sale.
Last week, Congress passed the "American Taxpayer Relief Act of 2012," which extends the income tax exemption on forgiven mortgage debt for one year. This means that qualified homeowners who short-sell their principal residence and are forgiven the obligation to repay some or all of the unpaid balance may exclude the qualified cancelled debt from their taxable income. This should serve to promote short sales in the coming year, as it will enable qualified homeowners to continue seeking forgiveness of mortgage debt in a short sale without being taxed for it. The exemption also applies to any qualified debt forgiveness in a loan modification, refinance, or foreclosure.
However, not all mortgage debt qualifies for the exemption. Homeowners should be advised to seek advice from tax and legal professionals to ascertain whether their mortgage debt qualifies for the exemption.
As always, Keep the faith!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com1tag:blogger.com,1999:blog-7423811963911677092.post-89852901058225470922012-11-11T20:47:00.000-08:002012-11-11T20:47:05.118-08:00Relief from Short Sale/Foreclosure and other woes ...
Having a hard time making ends meet? Well, there's a new avenue for you to explore.
If you are a California homeowner and personally occupy your property, have financing that does not exceed $729,750 and that loan was in place before January 1, 2010... Help may be just a few clicks away ... http://keepyourhomecalifornia.org/ ... They offer programs for Principal Reduction, Mortage Reinstatement, Unemployment Assistance, Transition Assistance and more.
If I can assist you in any way, please contact me. You've had the setback and I am all about the comeback ... I strive to make a positive impact on someone's life every day.
Best of Luck to you and as always - Keep the Faith!!!
Short Sale Sully 760-610-3245LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-29408292628050479552012-09-13T17:13:00.001-07:002012-09-13T17:13:38.259-07:00Tax relief on forgiven debt set to expire Dec. 31, 2012I've been talking about this and if you need to Sell Short - Get a move on ... Just in case. There are no guarantees that there will be an extension from either the Fed or State, if there is - I promise to report it right away ... Read on for the latest ...
Unless Congress and the California State legislature take action, a break for mortgage principal forgiven in loan modifications or short sales will expire at year’s end.
The mortgage debt forgiveness issue is only one of approximately 60 expiring tax provisions that Congress appears unable to extend prior to its recess for the November elections. Congress is pushing the extension of any expiring tax provision to the lame duck session, along with any increase in the debt ceiling, and any serious attempts to prevent the mandatory budget cuts agreed to during last year’s debt ceiling deal.
California's tax treatment of mortgage debt relief income generally aligns with federal law, and both the California and federal laws are set to expire at the end of 2012. For debt forgiven on a loan secured by a "qualified principal residence," borrowers are exempt from both federal and state income tax consequences, but only until Dec. 31, 2012. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to pay off a previous loan that would have qualified.
However, these tax breaks apply only to debts discharged from 2009 through 2012. It may be that Congress will take action to extend the federal exemption before year-end, but we will have to wait and see. If the federal law is extended, it is likely that California would follow in due course, as in the past, but it is not guaranteed. The last time the federal tax exemption was extended, California did not conform its tax law until well into the next year.
Sellers who have transactions closing after Dec. 31, 2012, need to speak to their own legal counsel or tax advisors about the impact of the expiration of these laws and their potential tax liabilities, including the applicability of other exemptions from debt relief income tax.
Keep the faith!!!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-51897679876376220402012-09-11T09:50:00.000-07:002012-09-11T09:50:00.337-07:00Why Short Sales, Foreclosures Damage Credit SimilarlyHere is an interesting story which relates the reasoning and includes Blog postings from the FICO Web site about why these events hit the credit scoring so hard and there being no real difference between Short Sale, Deeds-in-Lieu and Foreclosures. In my opinion, the fact of the matter is that when you experience financial difficulties to get into a situation to be considered for these alternatives or a Modification, as well, you have usually missed from one to many mortgage payments. This is where the real damage is done in your credit scoring, especially if it takes quite a while to close whichever alternative you end up with. Your late charges go from 30 days to 60 days to 90 days to 90+ then 180 then 180+ and on and on. This is happpening while your credit scoring is spinning downward monthly. The label the final action is given at the end is really immaterial and while there is a difference (certainly future lenders look at the difference in reviewing any application for future credit from 1-7 years down the line, depending on the Agency and loan program) the damage has already been done and nobody told you about that. Read on for the story ...
Daily Real Estate News | Friday, September 07, 2012
With short sales, home owners work with a bank on a solution to get out of a house they may no longer be able to afford or have to sell urgently for some reason. That’s why some argue short sales shouldn’t damage a person’s credit score in the same way as foreclosures, which can be much more costly for banks.
So should the penalty for a foreclosure more severely damage a borrower’s credit score than a short sale? No, maintains a new FICO study.
FICO conducted a study to determine the credit risk associated with “mortgage stress events,” such as foreclosures and short sales, by analyzing data from October 2009 to October 2011.
“While it is true that short sales represent slightly better risk than foreclosures, they do not perform well enough to merit a more positive treatment in the FICO Score,” according to a recent blog post on the FICO Web site.
The blog post goes on to explain that one out of every two borrowers who undergo a short sale go on to default on another account within two years. Also, according to researchers, an overwhelming majority of borrowers who went through a short sale also had some other mortgage delinquency in their credit history.
“From a weighting perspective, all these mortgage events – short sale, foreclosure, deed in lieu – fall into the same heavyweight class, because they correlate with exceptional riskiness,” the FICO blog post notes. “They aren’t alone in that class either. Based on the data, consumers with short sales perform no better than consumers who have a severe delinquency (90-plus days past due), a collection, or a derogatory public record (e.g., bankruptcy, tax lien, etc.) on file.”
Keep the faith ... LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-46569234040267763492012-09-10T09:51:00.001-07:002012-09-10T09:51:28.204-07:00Modification processs reportedly improvingMortgage settlement with banks starts to ease foreclosure crisis
Nearly 140,000 homeowners have received a total of $10.6 billion in mortgage debt relief from March through June, a federal report on the banks' progress says.
Overall, 137,846 struggling homeowners nationwide received some type of monetary relief from the banks during the four-month period starting in March for an average of about $76,615 each. Above, a foreclosed home is on the market last year in Miami. (Joe Raedle, Getty Images / August 30, 2012)
August 30, 2012
WASHINGTON — The nation's five largest banks are off to a good start on their promise to help ease the foreclosure crisis, providing nearly 140,000 struggling homeowners with a total of $10.6 billion in mortgage debt relief, according to a government report.
But the banks have much more work to do to fulfill their requirements under a $25-billion agreement reached in February to settle federal and state foreclosure abuse investigations, key officials said.
And to keep the pressure on, the government released the preliminary report Wednesday — the first look at how Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. were carrying out their commitments.
"We will continue holding the banks' feet to the fire in the months ahead, and we will be watching like hawks to make sure they live up to the requirements under this settlement," Housing and Urban Development Secretary Shaun Donovan said.
The report from the Office of Mortgage Settlement Oversight showed that Bank of America had faltered in one key area. It did not complete a single modification of a first mortgage from the settlement's start date of March 1 through June 30.
The other four banks had completed a total of 7,093 modifications of first mortgages worth $749 million during that same period. JPMorgan Chase completed the most, 2,920, with the highest value, $367 million.
Bank of America quickly responded to the report with updated numbers, saying that from July 1 to Aug. 21 it had completed 3,823 first-mortgage modifications, worth $596 million. Bank spokesman Dan Frahm said the modifications were difficult to complete by June 30 because each homeowner must first go through a three-month trial period.
Overall, 137,846 borrowers nationwide received some type of monetary relief from the banks during the four-month period for an average of about $76,615 each. Californians received about $4.6 billion in relief, by far the most of any state.
"We are happy with California's share of the pie, but the pie needs to get bigger," said Shum Preston, spokesman for California Atty. Gen. Kamala D. Harris, who was a key player in the settlement. "There's a lot of hurt out there."
The banks voluntarily provided the preliminary data before the first required report, due in November, and the data were not audited, said Joseph A. Smith Jr., the government-appointed monitor of the settlement. He released the information so the public could track the progress of the banks and the oversight of his office.
"Now that the information is out, it is going to facilitate a conversation, so to say, about how they're doing that will have an impact on the banks' motivation," Smith said. "I'm encouraged by where we are. But we're not going to declare victory."
The five largest mortgage servicers agreed to provide the relief to struggling homeowners as part of a settlement with federal officials and 49 states to end lengthy investigations into alleged "robo-signing" and other foreclosure abuses.
The banks have set aside about $20 billion to lower loan rates and principals and provide other relief directly to consumers, and $5 billion to the states, primarily for foreclosure relief and prevention programs.
The banks get credits for various types of homeowner relief. Each dollar forgiven in a short sale, for example, results in a credit of 45 cents if the bank owns the loan and 20 cents if it is held by investors.
The report did not say how much the $10.6 billion provided as of June 30 would reduce the $20-billion obligation. The largest amount of relief came in debt forgiveness as part of short sales, in which the bank allows a homeowner to sell a home for less than what is owed on the mortgage. The banks forgave about $8.7 billion in first- or second-mortgage debt as part of short sales.
In addition to the $749 million in principal reductions on first mortgages, the banks provided $231 million in principal reductions or outright forgiveness for second mortgages.
The banks also are adopting 304 servicing standards required by the settlement, with four of the banks saying that they implemented more than half the standard as of July 5. The report did not identify those banks.
Overall, Bank of America had provided the most relief to homeowners for the report period — $4.9 billion, nearly all in the form of short sales.
Kevin Stein, associate director of the California Reinvestment Coalition, a housing advocacy group, said he was concerned that most of the relief from the banks was in the form of short sales instead of principal reductions, which allows people to keep their homes.
"It's still early, and we want to be hopeful that will turn itself around," Stein said.
Donovan said short sales were easier to complete in the first few months of the settlement than principal reductions. But he said short sales are capped and are not as attractive to banks because they result in less credit toward fulfilling the settlement terms.
Katie Porter, a UC Irvine law professor who is monitoring the settlement compliance for the state attorney general, said the report showed that the banks had moved quickly to start providing relief, though their performance was uneven.
"We need to see more, but the trend is in the right direction," she said.
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-20467322726626657522012-09-08T13:03:00.004-07:002012-09-08T13:03:49.415-07:00HAFA Ending 12/31/12 but FHFA puts brakes on earlyFEDERAL HOUSING FINANCE AGENCY STATEMENT For Immediate Release
STATEMENT BY EDWARD J. DEMARCO, ACTING DIRECTOR, FEDERAL HOUSING FINANCE AGENCY, ON THE USE OF PRINCIPAL FORGIVENESS BY FANNIE MAE AND FREDDIE MAC
I provided a response to numerous congressional inquiries as to whether the Federal Housing Finance Agency (FHFA) would direct Fannie Mae and Freddie Mac to implement the Home Affordable Modification Program Principal Reduction Alternative (HAMP PRA). After extensive analysis of the revised HAMP PRA, including the determination by the Treasury Department to begin using Troubled Asset Relief Program (TARP) monies to make incentive payments to Fannie Mae and Freddie Mac, FHFA has concluded that the anticipated benefits do not outweigh the costs and risks. Given our multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches
in place today.
I have also previewed for Congress several housing-related initiatives to strengthen the loss mitigation and borrower assistance efforts of Fannie Mae and Freddie Mac as well as improve the operation of the housing finance market. These initiatives include new and consistent policies for lender representations and warranties, alignment and simplification of the Enterprise short sales programs, and further enhancements for borrowers looking to refinance their mortgages.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.7 trillion in funding for the U.S. mortgage markets and financial institutions. Note: The Federal Housing Finance Agency is releasing extensive documentation of its analysis and the basis for our policy conclusions. The documents being released include FHFA’s correspondence to numerous members of Congress, which includes a paper that describes the economic analyses undertaken, including the modeling results and the assessment of related operational costs and costs associated with the effect principal forgiveness may have on future defaults. A technical appendix to the paper describes the modeling work done to assess principal forgiveness and the sensitivity of the modeling results to various assumptions about borrower characteristics and borrower response. Also being released today are separate analyses of HAMP PRA undertaken by Fannie Mae and Freddie Mac and reported to FHFA by each company.
AS always ... keep the faith; and if you need any couseling on your California "Coachella Valley" property or loan situation, call upon "Short Sale Sully" 760-610-3245 Roger@ShortSaleSully.com
La Quinta Real EstateLQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-4325516078936715312012-08-21T22:13:00.001-07:002012-08-21T22:13:47.843-07:00FHFA issues new guidelines for Fannie/Freddie Short SalesBack in June, the Federal Housing Finance Agency 'FHFA' announced that strict timelines for servicers to respond to short sales within 30 days of receipt of a short sale offer, provide weekly status updates to the borrower, and communicate a final decision to the borrower within 60 days of receipt of the offer.
They have followed that up with new guidelines that will take effet November 1, 2012:
•Eliminates current Fannie Mae and Freddie Mac short sale programs and creates a single standard short sale process for both entities (Fannie and Freddie HAFA programs will expire at the end of the year).
•Enables servicers to quickly and easily qualify certain borrowers who are current on their mortgages for short sales without waiting for an approval from Fannie Mae or Freddie Mac
•Offers special treatment for military personnel with Permanent Change of Station (PCS) orders.
•Standardizes and clarifies foreclosure suspensions on a property with an approved short sale.
•May pay borrowers up to $3,000 in relocation assistance.
•Fannie Mae and Freddie Mac will offer up to $6,000 to subordinate lien holders to expedite a short sale.
In addition, FHFA clarified that a borrower experiencing a hardship must wait at least two years before becoming eligible for a Fannie Mae or Freddie Mac loan.
We haven't experienced the complete implementation and follow through of the items from June and hope that will improve. It will be interesting to see how these guidelines are implemented from November 1st forward and what the transition will involve for HAFA qualified applications that don't close by year end.
Stay tuned and Keep the faith!
La Quinta Real Estate
LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0tag:blogger.com,1999:blog-7423811963911677092.post-55180575706402472432012-05-31T23:36:00.000-07:002012-05-31T23:36:41.343-07:00Fannie & Freddie speeding up the Short Sale processFederal regulators have hopes of greatly streamlining the short-sale process starting mid-June. Bank of America started an expedited process of their own April 15th and now starting June 15, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, will require both agencies to give short-sale buyers a final decision within 60 days. (In a short sale, a lender agrees to accept less than the balance on a mortgage.)
Fannie and Freddie must also respond to initial requests for a short sale within 30 days of receiving the buyer’s submission.
“Short sales are huge right now,” said Peter Spino, the foreclosure services manager for Community Housing Innovators in White Plains, N.Y., a housing counselor certified by the Department of Housing and Urban Development. Distressed homeowners often prefer them to a foreclosure, he noted.
Expedited sales as a result of the new directive will benefit the entire housing market, said Michael McHugh, the president and chief executive of Continental Home Loans and the president of the Empire State Mortgage Bankers Association, a trade group. They could also remove some risks for buyers — many of whom previously had to wait months for a decision and then ended up not getting the house they wanted.
In March, the most recent month for which data were available, short sales represented more than 14 percent of existing home sales, according to CoreLogic, a data analytics company, compared with 12 percent for all of 2011 and about 10 percent in 2010. And as the number of short sales has risen, foreclosures have fallen. Completed foreclosures represented 25.3 percent of home sales in March, versus 34.9 percent in all of 2011 and 42.7 percent in all of 2010.
Lenders favor short sales because they are less costly and more efficient than foreclosures. Yet the homeowners, trying to exit as gracefully as possible, never know how long the process will take or how badly their credit will be hurt.
Although short sales have a reputation for being easier on credit scores than foreclosures, “that’s a fairly common misperception,” said Rod Griffin, the director of consumer and public education at Experian, one of the major credit bureaus. If there is a difference in impact, he said, it is slight. Both short sales and foreclosures remain on the credit report for seven years — but foreclosures don’t appear until the legal paperwork is filed, and that could take months, Mr. Griffin said.
The effect was measured in an analysis by VantageScore, a provider of credit scores used by lenders. The higher the credit rating a consumer has, the more points he or she would lose in a short sale.
If consumers started with, say, an 830 score, they would most likely lose 100 to 110 points from a short sale, 120 to 130 points from a foreclosure. But a homeowner with a 625 score, who is behind on his mortgage and some credit card payments, would lose 15 to 25 points from a short sale and 10 to 20 points from a foreclosure, the VantageScore analysis shows.
One major downside to a short sale has always been the length of time it takes to process the transaction. The application goes from Borrower(s) to Real Estatae Agent(s) to Negotiator to Bank to Investor (and maybe to Private Mortgage Company) and then back down the line; and if there are hiccups along the way, there can be lenghty delays in the process between the various links (i.e. valuation problems, counter offers, etc...) Short Sales have been done in record times (1-2 months) with 3-6 begin the norm and I’ve also had them take a year. I am actually working on one property that is approaching 1,000 days.
Locally, the inventory level is so low that Buyers who would not have previously looked at Short Sales are now jumping at the chance to submit an offer, certainly evidence that the buyer's market is gone.
As always, keep the faith!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com1tag:blogger.com,1999:blog-7423811963911677092.post-33651342037826848712012-05-19T10:39:00.003-07:002012-05-19T10:44:30.196-07:00Short Selling? BofA might pay up to $30,000Bank of America is offering some struggling homeowners payments of up to $30,000 if they sell their homes in a short sale and avoid ending up in foreclosure.
Under the plan, Bank of America will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.
The bank first tested the payments in a pilot program in Florida last fall. Under that initiative, Bank of America paid up to $20,000 to borrowers who sold their homes in short sales."This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," said Bob Hora, an executive for the bank. Chase started a similar initiative in late 2010 that pays as much as $35,000 to short sellers. Wells Fargo has also paid five-figure incentives to short sellers or to owners who turned over their deeds to the bank.
BofA said it has completed 200,000 short sales over the past two years. These sales are generally more cost effective for banks than foreclosures. By avoiding foreclosure, the lenders get distressed properties back from delinquent borrowers more quickly, which helps them to avoid property tax payments, maintenance expenses and legal fees that can build up for months, even years, as foreclosures work through the system.
In addition, the incentives help guarantee the homes will return to the lenders in better condition. Foreclosed properties are often poorly maintained, even sometimes sabotaged, by angry former owners, making them worth far less to the banks. During the last three months of 2011, foreclosures sold for an average of about $150,000, according to RealtyTrac. Meanwhile, short sales sold for an average of about $185,000.
To qualify for Bank of America's relocation payments, borrowers must obtain pre-approval on sale prices for their homes. The sale must begin by the end of 2012 and close by September 26, 2013. The exact compensation is determined case-by-case based on a calculation that involves the home's value, mortgage balance and other factors.
I am here to assit you with this inquiry so please call upon Short Sale Sully for assistance (760) 610-3245 .. and as always...
Keep the faith!LQREMusehttp://www.blogger.com/profile/12030724970928660850noreply@blogger.com0