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 sales.. Show all posts
Showing posts with label short sales.. 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.
Monday, January 14, 2013
The Mortgage Debt Forgiveness extended
The Mortgage Forgiveness Debt Relief Act has been extended for another year. The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction) or foreclosure.
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
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.
Monday, August 27, 2012
Video Blog: Short Sale/Foreclosure Tax Exemption Set to Expire in 2012
San Diego Realtor Mark Kunce talks about Mortgage Forgiveness Debt Relief Act.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
Fore more information, visit http://www.sdmyhome.com
Wednesday, July 11, 2012
Short Sale News: HOPE NOW Reports 38,000 Short Sales in May
HOPE NOW released its May loan modification data Monday, revealing that the month saw nearly 38,000 completed short sales.
The May short sale total brings the organization’s overall total (since December 2009) to nearly 906,000. Executive director Faith Schwartz said that short sales have contributed greatly to HOPE NOW’s foreclosure prevention efforts.
“We have been tracking short sales for almost two years, and we now have meaningful data that shows the impact of short sales on the housing market,” said Faith Schwartz, executive director of HOPE NOW. “Since 2007, the industry has completed 6.43 million permanent solutions, which includes short sales and loan modifications. This figure compares to 4.5 million foreclosure sales in the same period of time-and shows that real progress has been made by the industry, non-profits, and government on behalf of at-risk homeowners since the housing crisis began.”
In addition, HOPE NOW reported that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month, 17,590 of which were completed under HAMP. Approximately 45,000 loan modifications were completed via proprietary programs.
An estimated 81 percent of all proprietary modifications were mods with reduced principal and interest payments-73 percent of proprietary modifications reduced principal and interest payments by 10 percent or more. Fixed-rate modifications accounted for 90 percent of all proprietary modifications.
May saw increases in both foreclosure starts and sales compared to April’s data. Foreclosure starts were up 15 percent to 204,000 in May (compared to 177,000 in April), and completed foreclosure sales were up 9 percent to 65,000 (from 60,000 in April).
Delinquencies of 60 days or more remained relatively flat at 2.53 million (from April’s 2.52 million).
HOPE NOW’s release reaffirmed the organization’s focus on aggressive borrower outreach and noted its commitment to maintaining a high profile at outreach events, including several at military bases in the second half of the year.
“Foreclosures still have a negative impact on communities across the country, and our highest priority remains proper education and implementation of alternatives to foreclosure,” said Schwartz.
The May short sale total brings the organization’s overall total (since December 2009) to nearly 906,000. Executive director Faith Schwartz said that short sales have contributed greatly to HOPE NOW’s foreclosure prevention efforts.
“We have been tracking short sales for almost two years, and we now have meaningful data that shows the impact of short sales on the housing market,” said Faith Schwartz, executive director of HOPE NOW. “Since 2007, the industry has completed 6.43 million permanent solutions, which includes short sales and loan modifications. This figure compares to 4.5 million foreclosure sales in the same period of time-and shows that real progress has been made by the industry, non-profits, and government on behalf of at-risk homeowners since the housing crisis began.”
In addition, HOPE NOW reported that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month, 17,590 of which were completed under HAMP. Approximately 45,000 loan modifications were completed via proprietary programs.
An estimated 81 percent of all proprietary modifications were mods with reduced principal and interest payments-73 percent of proprietary modifications reduced principal and interest payments by 10 percent or more. Fixed-rate modifications accounted for 90 percent of all proprietary modifications.
May saw increases in both foreclosure starts and sales compared to April’s data. Foreclosure starts were up 15 percent to 204,000 in May (compared to 177,000 in April), and completed foreclosure sales were up 9 percent to 65,000 (from 60,000 in April).
Delinquencies of 60 days or more remained relatively flat at 2.53 million (from April’s 2.52 million).
HOPE NOW’s release reaffirmed the organization’s focus on aggressive borrower outreach and noted its commitment to maintaining a high profile at outreach events, including several at military bases in the second half of the year.
“Foreclosures still have a negative impact on communities across the country, and our highest priority remains proper education and implementation of alternatives to foreclosure,” said Schwartz.
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