Archive for the ‘Short Selling Advice’ Category

Real Estate Action:Contact your Senator / Congressman

Tuesday, December 18th, 2012

Tell Them:

“Extend Mortgage Debt Relief Act of 2007 for at least 2 more years”

“Preserve Homeowners Mortgage Interest Tax Deduction”

District 41            Jerry Lewis                          www.house.gov/jerrylewis

District 44            Ken Calvert                         www.calvert.house.gov

District 45            Mary Bono Mac                                www.bono.house.gov

District 49            Darrell Issa                          www.house.gov/issa

District 52            Duncan Hunter                 www.hunter.house.gov

Senators

Barbara Boxer www.boxer.senate.gov

Diane Feinstein                 www.feinstein.senate.gov

Short Sale Information Update, HAFA changes, Fiscal Cliff

Monday, December 17th, 2012

Short Sale Information Update

If you are contemplating a short sale because the market value of your home is below what you owe, the process has improved substantially since short sales became such a major part of the Real Estate world. The US Department of the Treasury established rules and incentives for hardship short sales in 2009 by creating HAFA. Coming up on February 1st, 2013, there will be further changes to make the process even more streamlined. HAFA was created to help and protect homeowner / borrowers during this process. There are programs to help all borrowers in distress and provide cash to the occupant (tenant or owner) for relocation assistance. The homeowner / borrower can even be current on their payments (and do a pre-approved short sale) if they qualify based on having a profession that requires their having a security clearance which also requires their FICO score be to standards (i.e. Military Officers, Police Officers, etc). Any borrower can qualify homeowner / borrower can qualify for a pre-approved short sale (current on payments) by applying and documenting hardship. In other HAFA shortsales the hardship starts with being 90 days late on mortgage payments.) The new HAFA revisions effective 2/1/13 have simplified the hardship qualification to being 1)90 days late and 2) having a FICO score of less than 620. There is a program for you, regardless if you are occupying the property or renting it and regardless if you own multiple properties.

Fiscal Cliff: As of December 16th, we are still awaiting US Congress to pass a bill to balance a new budget. This is commonly being referred to as the “Fiscal Cliff”. Included in this, pertaining to real estate ownership and short sales are deductability of mortgage interest (THE cornerstone to the benefit of owning a home verses renting) as well as the extension of the Mortgage Debt Relief Act of 2007. This act provides an offset on debt forgiveness associated with a short sale. This debt forgiveness is considered income by the IRS and is a taxable event. The offset eliminates this “income” on your tax return as long as the Mortgage Debt Relief Act of 2007 is still in place. What ever happens there is and always will be options in case of personal insolvency. Please always remember that any information you receive regarding your taxes should always be confirmed by your personal tax professional. If you have any further questions about planning a short sale, please feel free to contact me at any time at 951-833-8302 or email me at rrbodemer@gmail.com.

At your service,

Robert Bodemer, Realtor

How to short sell my home in Temecula.

Monday, June 21st, 2010

The national trend in homeownership in the past decade had involved the loosening of credit. Who have been the beneficiaries and or victims of this? How can YOU sort it out?

Mortgage Brokers  (not a lot of supervision during this time allowing legal loopholes that were good news to everyone, AT FIRST)

Mortgage Resellers (same as above)

Mortgagees (many were buying risky mortgages but did not know it because they were “bundled” by institutional mortgage brokerages.

Mortgagors:  This is you.

You love your family. You want better for them than you had. So, you gave it to them betting on stability that would last, until the nest was empty (at least). You may have been betting on future income increases to cover future interest rate increases you agreed to up front. You may have decided financeable home improvements were necessary. If the money came too easy, you may have purchased other items to put a smile on everyone’s face. Who knows and who cares at this point. It’s done! You have accepted the liability for paying back a loan and pledged your families dwelling as collateral. That’s right, your FAMILY’S dwelling. The place where you celebrate births, birthdays, Christmas, neighborhood block parties, and the list goes on.

Has it been worth it? Let’s keep the answer YES! Memories are precious and cannot be taken away. Unless, of course two factors intervene: (these may be painful but read and then move on).

1.    You are perilously upside down in equity and your housing payment is being nudged out by other family expenses. In today’s economy the idea of increasing income to maintain positive cash flow has disappeared.

2.    You cannot separate emotion from business in terms of this decision you made when you signed on the dotted line. Number 1 is done. Number 2 can overshadow the beautiful memories you have already made. But it doesn’t have to. You have a business decision to make and you can keep it simple. Avoid emotion and base your decision on the following question: How do I protect my cash flow, keep my family happy and safe,  and make a home where it’s immediate future is stable? The first step is to realize that staying focused on being positive and finding smart ways to increase your household income.

The second is to decide what you want your housing payment to be in order to take care of “the fam”. Make a budget and do it now!! When you get to the housing payment number, back into it based on the income and other expenses you have listed.  As long as you have taken every reasonable step to minimize your household expenses and you make reasonable estimates regarding your household income, regardless of how unacceptable the housing payment might seem to be, use it.  Once you have done this stick to your budget. Pay the mortgagee what’s in your budget and give them a copy of the budget if you submit a loan modification application. This is the best way to get a loan mod approved if the payment you are making is going to be acceptable to them. If it’s not, at least you were honest with them and with yourself.

As a rule, if your proposed housing payment is not compatible with the local rental market for a similar home, your hopes for approval of a loan mod are diminished. Furthermore, you will need to re-examine the budget. If the budget is carrying minimum payments on unsecured debt (credit cards, etc) then you should consult with a Bankruptcy Attorney. The attorney might be able to get you protection and might even help save your house.

In the long run, one of two things are true: You are going to stay in this home or you are not. If you are not, then you can default and, in 3+ months your title and right to reside in the home will be lost in foreclosure. (Ok, breathe deep and put your business hat back on. Ready? Ok, let’s go) There is a lot legislation and new laws flying around regarding Short Selling the home as it pertains to debt forgiveness, eligibility for debt forgiveness, and whether or not this is a taxable event. There are new laws and moratoriums on existing laws that are allowing short sales to proceed. Bite the bullet early on and see a recommended CPA/Tax Accountant. Regardless of what answers you get, you may decide that you do not want a foreclosure on your credit history. In this case, we would like you to contact us:
Wren/Bodemer Team
Realtor Partners
Coldwell Banker Residential Brokerage
www.TemeculaAreaHomes.com
951-833-8302
wrenbodemerteam@gmail.com

The short sale process involves the following steps:
1.    Listing your home for sale with the Wren/Bodemer Team,
2.    Setting a price that is fair market value,
3.    Signing a ‘Right to Receive Convey Information’ so we can negotiate with your bank,
4.    Show your home to prospective buyers when we bring them over,
5.    Accept an offer we all agree is workable,
6.    Allow us to use our knowledge, on our time, to negotiate with the bank,
7.    Work with us through closing the sale,
8.    Move on with your life.

We strive to keep all matters private and professional. It is our goal to complete the sale and allow you to improve your financial future. Along the way we want to respect your family’s dignity and privacy. Because, like we said, IT’S BUSINESS. Please call us soon and, by all means, recommend us to people you care about.

Much success to you, now and in the future,

Bob Bodemer
Wren/Bodemer Team
Realtor Partners
Coldwell Banker Residential Brokerage
www.TemeculaAreaHomes.com
951-833-8302
wrenbodemerteam@gmail.com