Home Refinance – Avoid Foreclosure Using the New Stimulus Package

Posted by webmaster on Jan 26, 2012 in Foreclosure | 0 comments

The clear intention of Obama's new stimulus package for homeowners is to prevent foreclosure on their homes. People facing problems when it comes to meeting their mortgage repayments can apply for either a loan modification or mortgage refinancing option in order to avoid foreclosure on their primary home and place of residence.

How the plan works

After refinancing or loan modification the percentage of gross monthly income that the total monthly mortgage repayments can represent is 31% although under certain exceptional circumstances this might be increased to 38%.

The qualifying criteria for mortgage refinancing is different to the qualifying criteria for loan modification but the objective of having affordable mortgage repayments that can be sustained is the same.

For loan modifications this is achieved through various means that may include reducing the interest made on payments, extending the period of the loan or potentially deferring a part of the loan until a later time (balloon payment). In exceptional circumstances there may even be a portion of the loan forgiven, i.e. written off but this is entirely at the discretion of the lender as is the balloon payment. One is called principal forbearance and the other principal forgiveness.

The balloon payment (principal forbearance) can only be applied to loan modifications and not to mortgage refinancing. This part of the loan basically just sits there with no interest or capital repayment being paid. The amount is still owed, but you would not be required to pay it until the rest of the loan is cleared.

Interest rates for the mortgage refinancing are governed by market rates and there are concessions available to help with payments for closing costs or perhaps a title report that can be rolled into the loan for people who do not have the ready cash to hand. These concessions are different depending on whether the loan is under Freddie Mac or Fannie Mae.

You need to assess whether the refinancing option works for you, it is possible that your repayments may not decrease but you may save money over the full period of the loan and you need to assess if taking this option is the correct decision. You can get free advice from a HUD approved housing counselor to help you asses the full financial impact.

The counselor will also be able to advise what other options you have if mortgage refinancing does not work for you e.g. the loan modification route or perhaps looking at the 'HOPE for homeowners' program administered by the FHA.

Visit Need Mortgage Refinance to get detailed information of the stimulus package, what it offers and other alternatives.

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How Does a Short Sale Affect Your Credit?

Posted by webmaster on Jan 25, 2012 in Short Sale Arizona - Phoenix - Queen Creek | 0 comments

With so many real estate investors and homeowners in properties that they can no longer afford, if is imperative that individuals know their options when it comes to getting out from under these mortgages. One such option is a short sale.

A short sale related to real estate is when the owner of the real estate sells the property for less than he owes on the property. For instance, if you have a $250,000 lot and you sell the lot for $200,000, you have a deficiency of $50,000. This is typical in today's market where many of the real estate prices have dropped significantly. Sometimes, short sales are done voluntarily by the property owner because they have no choice. Other times, they are the result of foreclosure. In order to examine how the short sale would affect one's credit, we must examine how the short sale came about and the facts surrounding the settlement of the debt deficiency created by the short sale. Foreclosure/Pre-foreclosure The most damaging situation to your credit will obviously be if the property goes into foreclosure or if it is 60 days or more past due. This could drop your credit score by between 200 to 300 points. The lender will have two choices as to what to do with the deficiency. They could sue you, the property owner, for the difference which would likely result in a deficiency judgment on their credit report - in addition to the foreclosure. The other option that the lender has is to take the loss as a tax write-off. If they do this, there is typically not a deficiency judgment, but the property owner would receive a 1099 from the bank for the amount of the deficiency. The amount of this deficiency would be treated as income to the property owner and they would be required to pay taxes on it. Voluntary Short Sale If the property is sold via a short sale early enough (before becoming 60 days past due), the credit implications can vary widely. One option is for the property owner to pay cash for the deficiency. This would have no affect on one's credit since the deficiency has been covered. The property owner may be able to obtain a loan from the lender for the deficiency. This would affect one's credit in the same manner as if the mortgage had been paid in full and the individual got a new unrelated loan. The new loan could slightly help or hurt your credit depending upon other factors on your credit report, but there would be no negative impact directly from the short sale itself. If the property owner chooses not to pay off the deficiency, it will likely result in the same scenario as under a foreclosure. You would have a deficiency judgement if they sued you or the bank would write-off the amount and issue you a 1099. Regardless of your situation, it is best to seek the advice of a good Attorney when dealing with the banks. You want to ensure the best outcome there can be for your specific circumstances.

Chad Bordeaux is a Certified Public Accountant residing in Lake Wylie, SC - just outside of Charlotte, NC. His CPA firm, Bordeaux & Bordeaux, CPAs, PA, focuses on helping small business owners, individuals, and real estate investors with solutions and strategies to allow them to reach their short and long term goals. Chad is also a primary contributor to the Beancounter Ramblings Blog where he discusses matters of importance to his clients.

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Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Are You Curious About Tax Ramifications In Doing A Short Sale?

Posted by webmaster on Jan 25, 2012 in Uncategorized | 0 comments

Hello, my name is Kevin Kauffman. I am part of Group 46:10, one of the nation's top short sale and real estate businesses based right here in Avondale. Are you having trouble making your mortgage payments or are tired of being upside down on your mortgage? We at Group 46:10 can offer you different alternatives to alleviate some of these problems. As one of the top short sale groups in the nation, we've completed over 500 short sales in the past 4 years and have a completion rate of over 90%.

I am here today to talk to you a little bit about short sales and tax ramifications. One of the concerns that we hear quite frequently from prospective clients is that they want to short sell their home, but are worried about the taxes they'll have to pay after the sale. Perhaps you've heard from others that have done short sales that there were some tax liabilities and wish to find out more.

The Mortgage Debt Relief Forgiveness Act, which expires at the end of this year, permits homeowners, such as yourself, to not pay taxes on the forgiven amount if the property is their main residence and the selling price is less than $2.5million. If you are thinking about short selling your home, you need to act quickly because the transaction has to be completed by the end of the year in order to qualify for The Mortgage Debt Relief Forgiveness Act.

Please call us or fill out the form on our website, group4610shortsale.com, to find out more about this act or if you have questions about your specific situation. If you do not qualify for this act, don't let that keep you from short selling your propety. We have a couple of other ways to avoid paying taxes as well. A qualified short sale specialist, such as myself and my business partner Fred, can discuss those different options with you.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

What Are Your Short Sale Options?

Posted by webmaster on Jan 24, 2012 in Uncategorized | 0 comments

Hello, are you contemplating a short sale but you are not quite sure of what your options are? Well, my name is Kevin Kauffman and I am part of Group 46:10, Avondale's premiere short sale group and Avondale's premiere short sale team. I am here to inform you that you do have options and I'd love to speak to you about them. My group and I have closed over 500 short sales in the last four years. We're right here that will help you so in the event you want any help, whether or not you may have an FHA mortgage or perhaps you've got got a VA loan, we are able to help. Perhaps you're not sure as a result of there are different guidelines around FHA and VA loans in comparison with loans with your typical credit union or with Bank of America or Wells Fargo.

Come to the specialists and get a free consultation with us. We'd love to talk to you about what your choices are. We've worked with each financial institution out there. We've worked with over 100 banks. We have dealt with Fannie Mae and Freddie Mac, and FHA and VA, and anyone and everybody in between and we know that we can help you.

So please give us a call today. You may reach us at 480-449-6642. You can too fill out a form here on our website. If you’re not on our web site, you can go to us at Group4610shortsale.com. Right here you can get your free short sale decision calculator results in addition to request an in person meeting. We'd love to speak to you about your options and if a short sale is right for you, we'd love to help you. Thanks so much and have a fantastic day.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.