Is it True that the Mortgage Debt Relief Act is going to Be Extended?

Posted on Aug 20, 2012 in Roseville and Sacramento Short Sale FAQs

Hi I’m Mark Peek with Keller Williams Realty, one of Roseville and Sacramento’s leading short sale teams. Mortgage Debt Relief Act, what does that mean to you? Well a lot of you have asked the question of whether or not the Mortgage Debt Relief Act is going to be extended. The likelihood is it will be extended. Again the Mortgage Debt Relief Act essentially forgives the difference that could be potentially taxed in the short sale so if you owe $300,000 on a property on your balance and the net proceeds are $150,000, which means there is $150,000 that is forgiven in the short sale. The lender will send you a 1099 at the end of the tax year. Without the Mortgage Debt Relief Act, owner occupied individuals may be faced with a challenge regarding taxation. That’s a hot topic right now and recently the Senate has been pushing for an extension on this. One of the things that caught my attention is how long they are extending it for. This original law took effect in 2007 and the hope that it was going to be extended. There are still a lot of homeowners out there that are underwater on their homes.

Right now they are proposing to extend it only one year so what does that mean to you? If that’s the case and they are only going to extend it on a year by year basis then they are also thinking they will stop it. The fact that it’s only on a year extension has me a little concerned as to what is going to happen after 2013. If anyone is on the fence and considering a short sale, this bill is likely to be passed, it’s likely to happen after the election.

Again, I’m Mark Peek with Keller Williams, one of Roseville and Sacramento’s leading short sale teams and we’re here to help. If you would like more information, I would love to talk with you and see if a short sale might be a good option for you. Please contact me today and I look forward to speaking with you soon.

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Is it in Your Best Interest to Complete a HARP 2.0 Refinance or Short Sale on Your Home?

Posted on Aug 7, 2012 in Roseville and Sacramento Short Sale FAQs

Hi this is Mark Peek at Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. I want to talk to you today about whether or not to keep your home if you are underwater or if you are considering a refinance program such as the revised HARP 2.0. One of the things that I would suggest before you think about moving forward and taking a refinance on that is whether or not this makes sense for you. First of all with the payment that you get out of the refinance, would you be willing to rent this property at that current payment? If the answer is no, then the HARP 2.0 refinance is probably not in your best interest.

Number two is how long is it going to take for you to break even if you refinance? If it’s only going to reduce your payment a couple hundred dollars but you are severely underwater is that really in your best interest and how long is it going to take for you to break even again. One of the things I suggest before considering HARP 2.0 refinance is to run the numbers on your residence. Does it make sense for you to stay or should you short sale? If you short sale you can potentially come back and purchase again after closing the short sale in as little as two years. So, does that make sense? Take a look and use the short or stay calculator on my website. Put in your address and information and it will generate a report and give you an idea of how long it’s going to take for you to break even. It will help you decide if a refinance or short sale might be right for you.

If you have a Freddie Mac owned loan you are going to have a hard time and I’m not sure that there is many servicers or lenders out there that are doing Freddie Mac HARP 2.0 refinances. The guidelines are just so rigid on buy-backs out there that a lot of the lenders are afraid to do that. Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist and I’m here to answer any questions you may have.

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Are There Special Requirements when Completing a Short Sale on an Investment Property or Rental Property?

Posted on Jul 5, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone, this is Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. Today’s topic is investment property short sales. Now it’s June, so most of you have already been to your tax advisor. If you have a property that is underwater, it’s most likely eating you alive, as far as you are having to feed this property a negative amount in order just to cover your bills.

I recently spoke to a potential client who told me about her situation and how she was paying $2,000 a month negative. Every month she had to feed this property in order to keep paying the mortgage along with the rent she was receiving from the tenant. $2,000 is a lot of money. So my question is, what can you do with $2,000 a month extra income? Could you put it into a retirement, put it into mutual funds, help pay for college funds for children, maybe take some vacations that are needed or even pay down some debt. Not everybody is in that situation but most people I have talked to are somewhere around $800 or even more that they have to pay out of pocket in order to make it even every month.

So if you are in that situation and you probably talked to your tax advisor. Most tax advisors that I have spoken to and CPA’s are recommending that their clients with investment properties in this situation should complete a short sale. It’s not going to get any better any time soon and if you add up all that extra money that you are spending every month, it’s staggering if you look at it over the years. So take a look at your situation and if you have something similar, speak to your tax advisor or CPA.

Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist and I’m here to help. So if you have any questions about potentially completing a short sale on an investment property, give me a call. I would be happy to help answer any questions you have. Thanks and we look forward to speaking with you soon.

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What Does the Term Cash For Keys Mean and Are There Any Incentives for Completing a Short Sale on my Home?

Posted on Jun 29, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone, this is Mark Peek at Keller Williams Real Estate, your Roseville and Sacramento short sale specialists. I wanted to talk today about a question I get commonly asked about and that is if they complete a short sale, will they get cash for keys? Cash for keys is a term that was used in the days of foreclosures and is still being used today. So if your house is foreclosed on, and the bank has taken possession, at this point they want to try and get the former owner or the tenant out of the property. At that time, they may and they didn’t always do this, but most banks and lenders did offer cash for keys and still do. This is only in the case of foreclosure sales.

If you are completing a short sale, there is a potential incentive to complete a short sale so you could almost call it cash for keys. Many lenders are offering this, not all do, and it’s not a guarantee. There are different programs out there whether it’s Bank of America’s Cooperative Short Sale or HAFA short sales. Some other banks like HSBC have their own proprietary and Wachovia has the seller relocation incentives for completing a short sale.

Again, I’m Mark Peek with Keller Williams, your Roseville and Sacramento short sale specialist and I am here to help. So if relocation funds are an absolute necessity to you in order to relocate and complete a short sale, call me today. I would be happy to check to find out what bank you have and see what programs you might actually qualify for. Again, it is very similar to cash for keys but it is just basically a relocation incentive when it is applied to short sales. If you have any questions, feel free to give me a call or send me an email. You can click the start here button at the top of our webpage and I’ll be happy to follow up with you. Thanks and have a great day.

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