Is Short Sale relocation assistance Taxable?
San Diego Short Sale Specialist Mark Kunce will answer that question.
For more information, call 619-663-7139.
Showing posts with label Short Sale San Diego. Show all posts
Showing posts with label Short Sale San Diego. Show all posts
Wednesday, February 27, 2013
Video: Is Short Sale Relocation Assistance Money Taxable?
Is Short Sale relocation assistance Taxable?
San Diego Short Sale Specialist Mark Kunce will answer that question.
For more information, call 619-663-7139.
Thursday, December 13, 2012
Associations make final push for mortgage debt forgiveness extension
Lawmakers' failure to extend the Mortgage
Forgiveness Debt Relief Act by year-end will kill any momentum surrounding
the short sales process, real estate
economists say.
Several banking and real estate organizations sent a warning letter about the expiring act and the immediate need for an extension to Senate leaders Wednesday.
Short sales in the past year have become an attractive escape route for banks and borrowers when a homeowner simply cannot repay a home loan.
But if the mortgage debt relief act is allowed to expire on Dec. 31 without an extension, distressed borrowers could end up paying taxes on mortgage debts forgiven through principal reductions or short sales. The current law allows borrowers to avoid tax liabilities for the extinction or sale of mortgage debt.
"If Congress fails to act, the possibility of receiving a tax bill would make it more difficult and expensive for these struggling homeowners to accept short sales and many loan modification offers," the associations wrote in a letter to the Senate.
Doug Duncan, chief economist for Fannie Mae, said turning debt forgiveness from a nontaxable event to a taxable one could "encourage lenders to ramp up short sales in this (current) period."
He added, "Then after Dec. 31, it may create an incentive for the homeowner to simply let the process go to foreclosure because in a foreclosure proceeding it is not a taxable event," Duncan told HousingWire.
Organizations signing the letter included the American Bankers Association, the American Land Title Association, the Mortgage Bankers Association, the National Association of Home Builders and the National Association of Realtors.
Source: Housingwire.com
Reported by By Kpanchuk
Several banking and real estate organizations sent a warning letter about the expiring act and the immediate need for an extension to Senate leaders Wednesday.
Short sales in the past year have become an attractive escape route for banks and borrowers when a homeowner simply cannot repay a home loan.
But if the mortgage debt relief act is allowed to expire on Dec. 31 without an extension, distressed borrowers could end up paying taxes on mortgage debts forgiven through principal reductions or short sales. The current law allows borrowers to avoid tax liabilities for the extinction or sale of mortgage debt.
"If Congress fails to act, the possibility of receiving a tax bill would make it more difficult and expensive for these struggling homeowners to accept short sales and many loan modification offers," the associations wrote in a letter to the Senate.
Doug Duncan, chief economist for Fannie Mae, said turning debt forgiveness from a nontaxable event to a taxable one could "encourage lenders to ramp up short sales in this (current) period."
He added, "Then after Dec. 31, it may create an incentive for the homeowner to simply let the process go to foreclosure because in a foreclosure proceeding it is not a taxable event," Duncan told HousingWire.
Organizations signing the letter included the American Bankers Association, the American Land Title Association, the Mortgage Bankers Association, the National Association of Home Builders and the National Association of Realtors.
Source: Housingwire.com
Reported by By Kpanchuk
Keller Williams names Mark Kunce 2013 Cultural Icon for Southern CA
Mark Kunce of San Diego My Home Team, Keller Williams San Diego Metro was recently named as the
2013 Cultural Icon for his contributions to KW Cares and many other local and
national charities. More commonly known as the WI4C2TS Award, it is given to the
agent who best exemplifies the Keller Williams culture. The Cultural Icon Award
is presented to an elite group of Associates who best live up to the Keller
Williams Realty "WI4C2TS" philosophy.
KW Cares is a 501(c) (3) public charity created to support Keller Williams Realty associates and their families with hardship as a result of a sudden emergency. Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.
The charity is the heart of Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the Market Centers and communities where Keller Williams associates live and work.
KW Cares is a 501(c) (3) public charity created to support Keller Williams Realty associates and their families with hardship as a result of a sudden emergency. Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.
The charity is the heart of Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the Market Centers and communities where Keller Williams associates live and work.
Tuesday, October 23, 2012
Short Sale News: Ratings Agency Forecasts a Stronger Year for Short Sales in 2013
Even though the number of
foreclosure filings has risen dramatically in recent months in some parts of the
country—specifically in judicial states—the ratings agency DBRS expects total
foreclosure filings to show evidence of a steady decline in 2013 when compared
to 2012.
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
Monday, October 8, 2012
Short Sale News: CoreLogic: Home Prices Sustain Recovery with 4.6% Yearly Gain
ome prices continued to trend upwards in August, posting both yearly and monthly gains for the sixth consecutive month, CoreLogic reported Tuesday.
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
Friday, October 5, 2012
Short Sale News: Shadow inventory declines by 1.2 million in 2012
Banks trimmed 1.2 million troubled mortgages or foreclosed homes out of the
massive shadow inventory hanging over the housing market in the first half of
2012, according to JPMorgan Chase ($41.71 -0.11%)
research.
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
Wednesday, September 26, 2012
Review: Bank of America New Short Sale Relocation Assistance Program
On August 22nd, 2012 we closed a short sale with Bank of America in El Cajon, CA.
The transaction moved along very smoothly.
We initiated short sale on May 23rd. It took about 20 days to receive a short sale approval (Short Sale Relocation Assistance Program).
We received the first offer just 4 days after listing the property on June 14th. The seller and I decided not to jump on the first offer and waited 10 days, received other offers and chose the most qualified.
Seller, buyer, escrow and Bank of America processed all the documents, and the property went into “Sale Pending” status on July 18th. FHA buyer and buyer’s agent were very cooperative, We just reminded them that this was an as-is sale, no termite clearance, and the transaction closed with no issues.
Lender credited the seller’s relocation fee, property tax, and buyer’s closing costs!
If you or someone you know is interested in doing a short sale, please contact Mark Kunce 619-663-7139.
The transaction moved along very smoothly.
We initiated short sale on May 23rd. It took about 20 days to receive a short sale approval (Short Sale Relocation Assistance Program).
We received the first offer just 4 days after listing the property on June 14th. The seller and I decided not to jump on the first offer and waited 10 days, received other offers and chose the most qualified.
Seller, buyer, escrow and Bank of America processed all the documents, and the property went into “Sale Pending” status on July 18th. FHA buyer and buyer’s agent were very cooperative, We just reminded them that this was an as-is sale, no termite clearance, and the transaction closed with no issues.
Lender credited the seller’s relocation fee, property tax, and buyer’s closing costs!
If you or someone you know is interested in doing a short sale, please contact Mark Kunce 619-663-7139.
Saturday, July 14, 2012
Short Sale News: RealtyTrac: 2Q foreclosure activity rises as some states see reboot
Foreclosure starts in the second quarter saw a 9% increase from the first quarter and rose 6% from 2Q 2011, marking the first year-over-year increase in quarterly foreclosure starts since the fourth quarter of 2009, according to RealtyTrac's Midyear 2012 Foreclosure Market Report.
"Foreclosure starts began boiling over in more markets in the first half of the year, particularly in the second quarter, when rising foreclosure starts spread from primarily judicial foreclosure states in the first quarter to more than half of all nonjudicial foreclosure states in the second quarter," said Brandon Moore, CEO of RealtyTrac.
A total of 31 states posted year-over-year increases in foreclosure starts in the second quarter — 17 judicial foreclosure states and 14 nonjudicial foreclosure states.
In California, June also brought a 18% year-over-year increase in foreclosure starts, boosting the state's foreclosure rate to the highest nationwide for the month, marking the first time California's monthly foreclosure rate ranked No. 1 since RealtyTrac began reporting the numbers in 2005.
Nevada's foreclosure starts were up 61% from the first quarter to the second, indicating lenders are beginning to adjust to an October 2011 law that required additional documentation to initiate the foreclosure process.
The report shows a total of 1.05 million properties with foreclosure filings, including default notices, auction sale notices and bank repossessions, in the first half of the year, up 2% from the previous six months, down 11% from the first half of 2011.
Nevada, Arizona and Georgia came in the top spots for foreclosure filings for the first half of the year.
Despite Nevada's 61% year-over-year drop in foreclosure activity, the state still ranked No. 1 on the list with one in every 57 homes having a foreclosures filing compared to 1 in 126 nationally.
Arizona, which had the second highest foreclosure-filing rate, saw first-half filings decrease 37% from the same time last year, but one in 53 homes still had a foreclosure filing.
Coming in third, Georgia's foreclosure starts in the second quarter increased 5% from the first quarter and were up 23% from the year-ago quarter.
Nationwide, overall foreclosure activity decreased in June on a year-over-year basis for the 21st straight month, while foreclosure starts for the month increased annually for the second consecutive month.
Brandon Moore, CEO of RealtyTrac, said the additional scrutiny on how lenders and mortgage servicers process foreclosures along with additional measures by the federal government and several state governments to prevent foreclosures kept foreclosures down on a national scale, but several states still saw dramatic rises.
The first six months of 2012 saw a 2% increase in foreclosure from the last half of 2011, but filings were still down 11% from the same time period last year.
First-half foreclosure activity increased from a year ago in 20 states, including Indiana (32%), Pennsylvania (24%), South Carolina (23%), Connecticut (23%), Florida (23%) and Illinois (22%). But even with those dramatic increases, Nevada, Arizona and Georgia posted the top state foreclosure rates in the first half of the year.
Foreclosure completion time was up in the second quarter, increasing to 378 days from the initial foreclosure notice to the completed foreclosure, compared to the first quarter's 378 days. The number is a record high going back to the first quarter of 2007.
A few states with some of the longest foreclosure timelines, however, saw their average foreclosure time decrease. The average time to foreclosure in New York was down from 1,056 days in the first quarter to 1,001 days in the second quarter — a 5% drop — though the state still has the longest foreclosure timeline nationwide.
It was also down 3% in New Jersey, the state with the second longest timeline, and was down 1% in Pennsylvania, which has the seventh longest timeline.
"Lenders and servicers are slowly but surely catching up with the backlog of delinquent loans that under normal circumstances would have started the foreclosure process last year, and that catching up is why the average time to complete the foreclosure process started to level off or decrease in some states in the second quarter," Moore said.
"The increases in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year."
Source: Housingwire.com
Reported by Kerri Ann Panchuk
"Foreclosure starts began boiling over in more markets in the first half of the year, particularly in the second quarter, when rising foreclosure starts spread from primarily judicial foreclosure states in the first quarter to more than half of all nonjudicial foreclosure states in the second quarter," said Brandon Moore, CEO of RealtyTrac.
A total of 31 states posted year-over-year increases in foreclosure starts in the second quarter — 17 judicial foreclosure states and 14 nonjudicial foreclosure states.
In California, June also brought a 18% year-over-year increase in foreclosure starts, boosting the state's foreclosure rate to the highest nationwide for the month, marking the first time California's monthly foreclosure rate ranked No. 1 since RealtyTrac began reporting the numbers in 2005.
Nevada's foreclosure starts were up 61% from the first quarter to the second, indicating lenders are beginning to adjust to an October 2011 law that required additional documentation to initiate the foreclosure process.
The report shows a total of 1.05 million properties with foreclosure filings, including default notices, auction sale notices and bank repossessions, in the first half of the year, up 2% from the previous six months, down 11% from the first half of 2011.
Nevada, Arizona and Georgia came in the top spots for foreclosure filings for the first half of the year.
Despite Nevada's 61% year-over-year drop in foreclosure activity, the state still ranked No. 1 on the list with one in every 57 homes having a foreclosures filing compared to 1 in 126 nationally.
Arizona, which had the second highest foreclosure-filing rate, saw first-half filings decrease 37% from the same time last year, but one in 53 homes still had a foreclosure filing.
Coming in third, Georgia's foreclosure starts in the second quarter increased 5% from the first quarter and were up 23% from the year-ago quarter.
Nationwide, overall foreclosure activity decreased in June on a year-over-year basis for the 21st straight month, while foreclosure starts for the month increased annually for the second consecutive month.
Brandon Moore, CEO of RealtyTrac, said the additional scrutiny on how lenders and mortgage servicers process foreclosures along with additional measures by the federal government and several state governments to prevent foreclosures kept foreclosures down on a national scale, but several states still saw dramatic rises.
The first six months of 2012 saw a 2% increase in foreclosure from the last half of 2011, but filings were still down 11% from the same time period last year.
First-half foreclosure activity increased from a year ago in 20 states, including Indiana (32%), Pennsylvania (24%), South Carolina (23%), Connecticut (23%), Florida (23%) and Illinois (22%). But even with those dramatic increases, Nevada, Arizona and Georgia posted the top state foreclosure rates in the first half of the year.
Foreclosure completion time was up in the second quarter, increasing to 378 days from the initial foreclosure notice to the completed foreclosure, compared to the first quarter's 378 days. The number is a record high going back to the first quarter of 2007.
A few states with some of the longest foreclosure timelines, however, saw their average foreclosure time decrease. The average time to foreclosure in New York was down from 1,056 days in the first quarter to 1,001 days in the second quarter — a 5% drop — though the state still has the longest foreclosure timeline nationwide.
It was also down 3% in New Jersey, the state with the second longest timeline, and was down 1% in Pennsylvania, which has the seventh longest timeline.
"Lenders and servicers are slowly but surely catching up with the backlog of delinquent loans that under normal circumstances would have started the foreclosure process last year, and that catching up is why the average time to complete the foreclosure process started to level off or decrease in some states in the second quarter," Moore said.
"The increases in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year."
Source: Housingwire.com
Reported by Kerri Ann Panchuk
Friday, June 29, 2012
Video Blog: New Bank of America Short Sale Relocation Assistance Program
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