The Mortgage Debt Relief Act runs out this year.  This means that sellers considering doing a short sale should start now in order to avoid closing next year because if they close next year the 1099 that the lender will send them will cause them to have to pay Federal and State income taxes on the amount that the lender lost as ordinary income.  This protection has nothing to do with gains it is the lenders loss that you will be paying taxes on.
So make sure that if you are on the fence about whether or not to start a short sale you are aware of this.  See links below for the State of California and the IRS documents on this law which was enacted in 2007 and ends this year, December 31st 2012.     Follow this link for more info on Los Angeles…

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roof-repair_299 Deciding if it’s time for a new roof can be a little tricky. Sometimes the roof just needs a little touch up by replacing a few tiles, and other times you really do need to tear off the old roof and start from scratch. Hiring a roofing contractor or attempting to reroof yourself can be timely and expensive, so be sure to look at your options before you begin this extensive process. Check off these easy steps before you decide to put any money into this project.

 

 

 

 

  • Begin by inspecting your roof. Spring is a great time of year to inspect since winter is one of the more damaging seasons. Also with spring comes better weather, which will aid in the reroofing process. Check for cracked, warped, or missing asphalt shingles, as well as any…

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You don't have to pay the sellers just change the mortgage underwriting guidelines so that after a short sale where the seller fully participates (not someone who milked the system to live for free as long as possible) you can buy a home.  How about take the number of mortgage payments missed multiplied by a factor say 2, 3 or 4 + a base number ( say 3 months) and that is how long a buyer has to wait to buy a new home after a short sale versus the 3-4-5-7 years they have to wait for allowing the house to go into foreclosure. Do this and you'll get much better participation and you dont' have to use more taxpayer TARP-funded money to give to overextended homeowners.

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http://assessor.lacounty.gov/extranet/list/forms.aspx?catid=70

 

Important points to remember:

 

  • Comparables need to be from Jan 1 2011 to March 31 2011
  • Applications MUST be filed between June 1 and November 30, 2011
  • To apply online you need the 4 digit Pin that comes on your LA County annual property tax bill that the assessors office sends in the snail mail
Call or e-mail me if you need any help with this or any buying or selling related issues in LA County. Appeal Form  

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re: link below

I like this trend.  People shouldn't be allowed to live in their house forever, make no payments without consequences.  The extra losses caused by people that have started to take advantage of this fact drives up costs for everyone trying to operate as a professional or consumer in the Residential Real Estate market.

 

 

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fannie-logo_212 


As part of their neighborhood stabilization program, Fannie Mae is offering buyers’ assistance through a couple of different programs, HomePath and First Look.

HomePath


HomePath helps buyers buy covering their closing costs, up to 3.5% of the home’s purchase price.

To qualify, buyers must be purchasing a HomePath property; this is a home that is owned by Fannie Mae, usually as the result of a foreclosure or owner forfeiture.  Buyers need to make the initial offer on the home on or after June 14, 2011, and the purchase must close by October 31, 2011; initial offers made prior to June 14 are not eligible.

View full details on qualifying for this program.
Search for HomePath properties.
Read an FAQ on the HomePath program.


First Look
In addition to…

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The article fron Transunion entitled "TransUnion Study Finds Opportunity in Mortgage-Only Default Market" is the first data I've seen that shows what many real estate and mortgage industry participants have known for a long time.  People that have good credit take away mortgage lates related to a loan modification or a short sale are much lower credit risks than people that actually let their house go to foreclosure.  There are many reasons that may have forced a consumer to move at a time when due to greater macro economic circumstances there home may have been underwater.  They could have been laid off and had to find a new job in a new area being a very common cause in our current economy as an example.

I've always said that lenders want to lend,…

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