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Short Sale Tips for Consumers

March 26, 2013 by Leave a Comment

Below are general tips prepared by the CALIFORNIA ASSOCIATION OF REALTORS®.  However, these just skim the surface of information available through your REALTOR®.  As a member of C.A.R. your REALTOR® has access to this information in its entirety, and much more! 

SHORT SALE SELLERS

1. Hire a REALTOR®!
Not all real estate agents are REALTORS®.  REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2.Take a Proactive Approach
The short sale process can take a lot of time and effort on your part, so taking a proactive approach to your short sale may help you complete the transaction as quickly and painlessly as you can.

3. Knowledge is Your Friend
The short sale process may be new to many sellers and is much different than a normal transaction.  It is important to know what you are getting yourself into.

4. Do Your Homework
As early as you possible, determine your lender’s short sale requirements and whether you satisfy those requirements.

5. Get a Good Price For Your Home
Getting a good sales price not only improves your chances of getting your short sale approved, but may also have other advantages.

6. Submit a Complete Short Sale Package
Provide your lender with a complete short sale package containing all the required information and documentation in an organized manner.

7.  Be Patient But Persistent

8.  Avoid Scam Artists
Be wary of scams.  Your REALTOR® will help you avoid getting duped.

SHORT SALE BUYERS

1. Hire A REALTOR®!
Not all real estate agents are REALTORS®.  REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS® and voluntarily pledge to abide by the strict code of professional ethics.

2. Knowledge is Your Friend
The short sale process may be new to many buyers and is much different than a normal transaction.  It is important to know what you are getting yourself into.

3. Do Your Homework
Gather and review as much information about a transaction as you can before writing an offer to purchase.  Your REALTOR® can help you identify which properties for sale in the Multiple Listings Service are short sales.

4.  Write A Clean Offer
This describes an offer to purchase that the seller is unlikely to take issue with.

5.  Understanding the Timing
A short sale may take a long time and it is important to understand the timing of the process.

6.  Prep as Best as You Can

7. Manage Your Expectations About the Property

8. Don’t Lose Sight of the Big Picture

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The information being provided by CARETS (CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS, and/or VCRDS) is for the visitor's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties visitor may be interested in purchasing. Any information relating to a property referenced on this web site comes from the Internet Data Exchange (IDX) program of CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by CARETS, CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS and/or VCRDS and is protected by all applicable copyright laws. Any dissemination of this information is in violation of copyright laws and is strictly prohibited.

CARETS, California Real Estate Technology Services, is a consolidated MLS property listing data feed comprised of CLAW (Combined LA/Westside MLS), CRISNet MLS (Southland Regional AOR), DAMLS (Desert Area MLS),CRMLS (California Regional MLS), i-Tech MLS (Glendale AOR/Pasadena Foothills AOR) and VCRDS (Ventura County Regional Data Share).

Copyright © 2013 CARETS®. All Rights Reserved.


CARETS data last updated at May 24, 2013 2:07 AM PT
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Making Home Affordable – California Short Sale

March 19, 2013 by Leave a Comment

Foreclosure“Making Home Affordable is a key part of the Obama Administration’s effort to help homeowners avoid foreclosure. If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action. Start today by learning more about the options available to you through MHA.”
           - MakingHomeAfordable.gov (Read more about MHA)
Making Home Affordable is an official program of the Departments of the Treasury and Housing and Urban Development.  It is also supported by Freddie Mac and Fannie Mae, and gives homeowners the opportunity to learn about programs and alternatives regarding their housing situations.

Can you keep your home?

Making Home Affordable provides an online questionaire that helps determine your options and figure out the next steps.  By completing their questions you home owners learn what MHA Programs are available to them.

To take this questionaire click here.

Home Affordable Foreclosure Alternatives (HAFA) Program

If you are unable to keep your home, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA.  To find out more about a HAFA short sale and its benefits, please click here.

Counselor Escalation Process

If you have a current issue that has not been resolved by your normal servicers contacts, get in touch with a senior manager within the servicer’s organization.  To learn how to do this, please click here.

If you are not able to keep up with your mortgage and would like to speak to one of our licensed REALTOR professionals, please do not hesitate to contact us:

Toll Free 800-645-3345

Local       310-459-8191

email       info@westsidehomefinder.com

1682 BRIGHTON COURT, WESTLAKE VILLAGE, CA 91362
386 ENTRADA DRIVE, SANTA MONICA, CA 90402
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The information being provided by CARETS (CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS, and/or VCRDS) is for the visitor's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties visitor may be interested in purchasing. Any information relating to a property referenced on this web site comes from the Internet Data Exchange (IDX) program of CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by CARETS, CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS and/or VCRDS and is protected by all applicable copyright laws. Any dissemination of this information is in violation of copyright laws and is strictly prohibited.

CARETS, California Real Estate Technology Services, is a consolidated MLS property listing data feed comprised of CLAW (Combined LA/Westside MLS), CRISNet MLS (Southland Regional AOR), DAMLS (Desert Area MLS),CRMLS (California Regional MLS), i-Tech MLS (Glendale AOR/Pasadena Foothills AOR) and VCRDS (Ventura County Regional Data Share).

Copyright © 2013 CARETS®. All Rights Reserved.


CARETS data last updated at May 24, 2013 2:07 AM PT
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HAFA Short Sales Facts

March 12, 2013 by Leave a Comment

Happy Tuesday everyone! We hope you are enjoying this beautiful morning on the Westside of Los Angeles.

If you are a homeowner that is having problems keeping up with your mortgage and bills? Maybe it’s time you consider a short sale. HAFA (Home Affordable Foreclosure Alternatives) facts:

 What is HAFA? HAFA is a government-subsidized “Home Affordable Foreclosure Alternatives” program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender may pre-approve the terms of a short sale prior to listing, using standard forms and specific timeframes. Or an executed offer may be submitted without a pre-approval.
These Rules Apply Only to Participating Lenders HAFA is available for mortgages where the lender has entered into a Home Affordable Modification Program (“HAMP”) participation agreement. There are over 100 such participating lenders. The rules in this Fact Sheet apply only to non-GSE participating lenders and are NOT applicable for mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured by FHA, VA or the Dept. of Agriculture’s Rural Housing Service (known as “Government Sponsored Enterprises” or “GSEs”). Different rules apply to loans by those entities. A list of HAMP participating servicers can be found here.
HAFA rules for non-GSEs are more closely aligned with Fannie Mae rules As of February 1, 2013 the standard HAFA rules as stated in this fact sheet governing non-GSE lenders have been significantly modified for the purpose of better aligning those rules with the ones that govern Fannie Mae and Freddie Mac short sales.

Many of the previous forms have been eliminated including the Short Sale Agreement (SSA), the Request for Approval of Short Sale (RASS) and Alternative Request for Approval of Short Sale (Alt RASS). The SSA form has been changed to the Short Sale Notice (SSN). Previously, the SSA was an offer from the lender that the borrower accepted or rejected. Now, the SSN is simply a unilateral notice that gives the borrower the right to proceed with a short sale under specified terms.
 Eligibility The eligibility requirements for a HAFA short sale include the following:

  • The borrower may apply for HAFA directly. Not qualifying for HAMP (loan modification) or failing to successfully complete a trial period is no longer a condition of HAFA eligibility.
  • The loan is delinquent or default is reasonably foreseeable. Loans currently in foreclosure or bankruptcy are eligible.
  • The loan is secured by a 1 to 4 unit property. There is no longer a requirement that the property be owner occupied. Nor is there a limit on the number of properties owned by a borrower that may be approved under HAFA. Tenant occupied or vacant properties may be eligible.
  • The loan must be a first trust deed originated before Jan. 1, 2009.
  • The borrower’s hardship must be verified by the lender. Borrower must sign a Hardship Affidavit or Request for Modification Assistance (RMA) wherein the borrower has represented that he or she does not have sufficient liquid assets to make the monthly mortgage payments.
  • The borrower must not have been convicted of a felony larceny, theft, fraud, forgery, money laundering, or tax evasion in connection with a mortgage or real estate transaction within the last 10 years (the borrower must sign Dodd-Frank Certification to that effect).
  • Current unpaid principal balance must be less than the following: 1 Unit $729,750, 2 Units $934,200, 3 Units $1,129,250, 4 Units $1,403,400.
  • The borrower is a real person, not an LLC or corporation.
  • The property securing the loan is not condemned.
Release of Subordinate Liens Subordinate lien holders will continue to be paid in order of priority. There is no longer a 6% cap with respect of payments to each subordinate lien holder. However the aggregate cap has been raised to $8,500. This cap does not include payment for non-mortgage liens such as mechanics’ liens or HOA assessment liens.  Subordinate lien holder(s) may not require contributions from either the real estate agent or borrower as a condition for releasing its lien and releasing the borrower from personal liability. Any payments to subordinate lien holders must be included on the HUD-1 Settlement Statement.
Financial Incentives The government incentives under HAFA are as follows:

  • $3,000 for relocation expenses to borrower, tenant or non-borrower occupant who occupies property as principal residence and is required to vacate as a condition of the HAFA short sale. $3000 is the total incentive no matter how many occupants.
  • $1,500 to lender/servicer to cover administrative and processing costs
  • $2 reimbursement to investor for every $3 paid to extinguish junior liens, up to $5,000 maximum.
Program Cut-Off Date The borrower must have submitted a written request (mail, fax or e-mail) for consideration of a short sale, or before pre-approval of a HAFA short sale, written request for approval of an executed sales contract on or before December 31, 2013, and the transaction closing date must be on or before September 30, 2014.
HAFA Procedures The general procedures for HAFA where borrower seeks pre-approval for short sale:

Step 1: If a borrower who was not previously evaluated for HAMP requests a short sale, the lender must acknowledge request within 10 days and provide borrower with copy of Hardship Affidavit and description of HAFA evaluation process. Lender must consider borrower for HAFA Short Sale even if borrower did not specifically request it.

Or

Step 1: Lender must consider possible HAMP-eligible borrower for HAFA within 30 days of not qualifying for a Trial Period Plan (TPP), not successfully completing a TPP, or losing good standing on HAMP modification. Lender must then proactively notify borrower of eligibility.

Step 2: Borrower has 14 days after notification to request short sale. Or a borrower may initiate short sale request on his or her own. (But a borrower cannot participate in a HAFA pre-approved short sale and TPP at the same time).

Step 3: Lender has 10 days to acknowledge borrower’s request.

Step 4: Borrower delivers back Hardship Affidavit or other documents, if so required.

Step 5: Lender issues Short Sale Notice (SSN) or other pre-approval notice within 30 days of request for short sale.

Step 6: Borrower lists property for sale using a licensed real estate agent.

Step 7: Borrower does not sign or “accept” the SSN. The SSN is a unilateral pre-approval that gives the borrower the right to proceed with a short sale.

Step 8: The lender’s SSN must fix a termination date of at least 120 days from the effective date of the SSN.

Step 9: Borrower and agent market and sell the property.

Step 10: Within three business days following receipt of an executed purchase offer, borrower submits it to the lender along with other requested documents.

Step 11: Lender approves sale within 10 business days.

Step 12: Sale closes escrow.

Alternative Procedure where borrower has executed purchase offer prior to receiving HAFA pre-approval

Step 1: A borrower submits to lender executed sales contract to request short sale

Step 2: Lender Acknowledges receipt within 10 days using the Acknowledgement of Request for Short Sale form (ARSS) or similar form

Step 3: Borrower provides any additional documentation requested within 14 days including the Hardship Affidavit if necessary

Step 4: Lender verifies eligibility and approves or disapproves sale or makes a counter within 30 days of receipt of all offer documents.

 
Lender’s Evaluation If a borrower’s financial and hardship information has been verified as part of the HAMP evaluation and the servicer is in possession of a signed Hardship Affidavit or RMA, no additional financial or hardship assessment is required under HAFA. However, in accordance with investor guidelines, the lender/servicer may request updated financial information.

When a borrower who was not previously evaluated for HAMP requests a short sale the lender must determine the basic eligibility of the borrower and obtain a completed Hardship Affidavit (or RMA).
Mortgage Insurance A mortgage loan does not qualify for HAFA unless the mortgage insurer waives any right to collect additional sums (cash or note) from the borrower.
The Terms of the Pre-Approval using either Sale Notice (SSN) or the Lender’s Own Form The Pre-Approval must include, among other things, the following:

  • A fixed termination date to be a minimum of 120 calendar days from the Effective Date of the SSN.
  • A requirement that the property be listed with a licensed real estate professional who is regularly doing business in the community where the property is located.
  • Either a list price or net proceeds acceptable to the lender.
  • Notice that the borrower is responsible for property maintenance and repair from Effective Date
  • The amount of closing costs or other expenses the lender will permit to be deducted from the gross sale proceeds.
  • An agreement to fully release borrower from all liability for repayment of the loan.
  • An agreement not to complete a foreclosure sale if borrower complies with SSN.
  • Amount of acceptable closing costs and up to 6% real estate commission.
  • Notice that the sale must be an arm’s length transaction.
  • Notice that the buyer must agree not to resell the property within 30 days of closing and for sales between 31 and 90 days after closing, the buyer cannot sell property for more than 120% or the HAFA short sale price.
  • The borrower, tenant or other non-borrower occupant will be entitled to assistance of $3,000, as applicable
Tax, Credit, and Other Consequences A HAFA short sale may have serious tax, credit, financial, legal, and other consequences. Credit reporting for HAFA short sales must be either 13 “paid or closed/zero balance” or 65 “account paid in full/a foreclosure was started” as applicable. A homeowner is strongly encouraged to seek the advice of a qualified professional regarding these consequences.
Real Estate Commissions The real estate commission that may be paid is the amount indicated in the listing agreement between the borrower and the listing broker, provided that the commission may not exceed 6% of the sales contract price. The lender/servicer may not require, as a condition of approving a short sale, a reduction in the real estate commission below the commission stated in the SSN. A fee for any contractor retained by lender to assist the listing broker cannot be charged to the borrower or deducted from the real estate commission if paid from sale proceeds.
Lender’s Website Matrix Required Each lender/servicer must complete and post to its website a matrix that identifies the lenders/servicer’s unique HAFA eligibility criteria and program rules (HAFA Matrix). The Matrix must be consistent with HAFA Policy and any specific investor requirements or prohibitions.
Fact Sheet Reference Information All of the information in this Fact Sheet is based upon the MHA Handbook (v4.1 from 12/13/2012) and the Supplemental Directives 12-07 and 12-10. These references replace and supersede all previous Supplemental Directives, FAQs, reference guides, handbooks and waivers with regard to the Making Home Affordable Program for non-GSE mortgages. Links to the MHA Handbook and subsequent Supplemental Directives can be found here: https://www.hmpadmin.com/portal/programs/hamp.jsp#1.
More Information Go to http://www.makinghomeaffordable.gov/programs
/exit-gracefully/Pages/hafa.aspx or call 1 (888) 995-4673 to speak with a HUD-approved housing counselor for free. For additional guidance and MHA Handbook, go to https://www.hmpadmin.com/portal/programs/guidance.jsp.
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Frequently asked Short Sale questions via Dom Naidoo

November 26, 2012 by Leave a Comment

Happy Monday everyone! I hope you had a great Thanksgiving holiday and are ready for the week ahead. I recently attended another seminar for short sales and distressed properties and was amazing at the constantly changing short sale laws and programs for homeowners. Here is some information I retrieved from the seminar:

FREQUENTLY ASKED QUESTIONS

THE SELLER’S PERSPECTIVE

1. What is a short sale?

A short sale is a sales transaction in which the seller’s lender(s) agrees to accept

a payoff of less than the balance due on the loan and, in most cases, agree to

pay the associated costs of sale.

2. Do lenders always agree to pay the costs of sale?

No!  Short sale transactions do not follow a standard “blueprint.”  Each

transaction is evaluated based on the extent of loss, seller financial position and

market conditions.

3. How long does the average short sale take?

It can take anywhere from 28 days to six months or longer once the lender is in

receipt of a fully executed offer. The process frequently moves slowly. Currently,

many lenders are working to revamp their systems to speed up and streamline

the procedure.

4. If a short sale transaction can take up to six months, why do they call it a

“short sale”?

Clearly an oxymoron!  Or you could look at it this way: the value and therefore

the contract price are “shorter” than the loan amount.

The truth is a short sale has multiple phases that may affect the transaction time

frame.  Depending on market trends, price positioning, and other factors, it can

take up to 180 days or more for a property to sell. Once the negotiations between

buyer and seller are complete, the short sale proposal is sent to the lender who

will evaluate it from a financial perspective. In addition, the homeowner must

establish eligibility for the short sale by showing some level of hardship by

providing supporting documentation such as, paycheck stubs, bank statements,

tax returns, and other detailed financial and/or other documentation.

Understandably, this process takes time!

5. What are the basic eligibility requirements for short sale consideration?

As mentioned in number four above; homeowners typically have to prove some

level of hardship.  Hardships may vary in nature ranging from financial, marital

status, relocation, military deployment, salary reductions and so on.  Your

Realtor® can assist you in contacting your lender(s) to determine their specific

criteria.  Be honest and thorough in your assessment of your current situation.

6. Can you explain the difference between a “strategic” and a “non-strategic”

short sale?

A short sale (or default) may be considered strategic if the homeowner decides to

sell the property or stop making payments merely because the property has lost

equity or because they just no longer want to make payments and/or keep the

property.  Strategic short sales may be less likely to receive lender approval.

A non-strategic short sale (or default) occurs when the homeowner no longer has

the financial wherewithal to continue making payments and maintain the

property.

7. Do I have to be in default (behind in my payments) to be considered a

candidate for a short sale?

No!  It is imperative that every homeowner understand that failing to make their

payments may seriously damage their credit.  In addition, after the prescribed

legal time period and with proper legal notice, the lender may exercise their right

to foreclose and you could lose your home!

8. How do I determine if a short sale is right for me?

Homeowners ought to be aware of their options before considering a short sale.

Other alternatives include: Loan Modification, Refinance, Forbearance,

Repayment Plan, Deed-in-Lieu of Foreclosure, Deed-for-Lease™, Foreclosure,

and Bankruptcy.  Non-profit counselors are available to advise homeowners on

the advantages and disadvantages of each of the foregoing options.  A directory

of counselors may be obtained at www.hud.gov.  Your tax, financial and legal

advisors ought to be an integral part of the decision making process.

9. Why would a lender agree to a short sale?

There are various reasons why a lender may agree to a short sale. The

foreclosure process takes time, and as is often said, “time is money.”

The expense to the lender is a significant factor. Foreclosure costs may include:

internal fees and expenses, eviction, repairs and maintenance of the property,

security, as well as Home Owners Association (HOA) dues and utilities.  These

factors, combined with the federal and state government’s push to halt

foreclosures, make it easy to see why a short sale may be in the lender’s best

interest.

10. Is a short sale still an option if foreclosure has already taken place on my

home?

For the most part, the answer is no. Once the lender has completed the

foreclosure process, a short sale is not a viable option.  For that reason, it is vital

that homeowners understand the importance of early communication with the

lender. Don’t wait until it is too late. Speak to your lender, and let him or her know

that you are having financial or other difficulties.  If you want to retain ownership

of your home, you may be able to work with your lender to explore alternatives to

foreclosure. However, there are RARE circumstances that may allow for a

reversal of trustee sale in order to put a short sale back on track.

11. If my Realtor® and I are successful in achieving short sale approval from

all lenders do I remain responsible for the deficiency realized as result of

the short sale?

In California, if a lender (note holder) agrees to a short sale in writing, they are

prohibited from pursuing the homeowner (“mortgagor”) for a deficiency judgment.

The governing law is found is CA Civil Code Section 580(e) and is a result of the

passage of Senate Bills 931 and 458.  Under this law all loans recorded against

residential property with one to four units are essentially deficiency proof. If a

short sale is agreed to by the lender(s).  It is important to note the following: (i) in

the event of fraud the law does not protect the mortgagor (ii) in the event of

waste against the property the law does not protect the mortgagor (iii) if the

mortgagor is a Limited Liability Company, Limited Partnership or a corporation

the law does not apply.  Please consult real estate attorney for a full analysis of

the law.

12. I have a second mortgage on my home. Does this make me ineligible for a

short sale?

In many cases, a short sale can be achieved on properties with multiple loans.

Depending on the extent of the loss to the junior lien holder (second trust deed),

short sales are possible. When multiple loans are recorded against the property

the process becomes more challenging.  Proposals for short sale consideration

should be submitted to all lenders, including Mortgage Insurer (if any), at the

onset.

13. Once I have an offer on my home, what happens next?

Your REALTOR® will assist you in negotiating the best price and terms.  Once

the negotiations between buyer and seller are complete; the offer and all

supporting documentation should be packaged and submitted to the lender’s loss

mitigation department.  Follow-up and ongoing communication is a significant

factor in a successful short sale.Revised 8.19.11

14. Will I have to pay capital gains taxes if I sell a property as a short sale?

A short sale has no bearing on the calculation of capital gains taxes. However,

there are other tax liabilities that must be evaluated.  Seek the advice of tax,

financial and legal advisors before agreeing to a short sale.  For additional

information, you may visit www.irs.gov to learn more about taxation of short

sales.

15. Will a short sale affect my credit?

Yes. Your tax advisor will be able to address your specific situation.

*Any homeowner considering a short sale should consult with legal,

financial and tax advisors.

A directory of non-profit counselors is available at www.hud.gov

 

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Hurry and cash in on short-sale tax savings

June 13, 2012 by Leave a Comment

This is a very important news article from Marketwatch…

CHICAGO (MarketWatch)—An increasing number of homeowners who are underwater on their mortgage are selling their homes by short sale, and that could become an even more popular option during the rest of the year.

That’s partly because of a law set to expire at the end of 2012 that offers tax relief for homeowners who sold their home in a short sale or have had some other sort of mortgage debt forgiven or canceled, such as in a foreclosure or modification that included principal reduction. While there are efforts in Washington to extend these tax benefits, it’s hard to guess whether they’ll be renewed.

So those who think they might be able to take advantage have been stepping up, while they still can.

“Everybody [considering a short sale] needs to talk to a CPA and see if now is the time for them to get off the Titanic and in a lifeboat before this law expires,” said Marge Peck, associate broker and co-owner of Discover Arizona Real Estate in Mesa, Ariz. The company specializes in short sales. “I’ve just hired more staff. We’re prepared for the tsunami of people saying ‘I’ve waited long enough, nothing’s going to change.’”

Short sales are transactions in which the borrower owes more than the home is currently worth, and the lender agrees to accept less than the full mortgage payoff at closing.

The current savings for taxpayers is significant.

Say a homeowner took out a $200,000 mortgage on a home, and subsequently became underwater by about 20%, or $40,000, during the housing downturn. Without the current tax law, if the bank forgives that amount the borrower is underwater, such as through a short sale, they’d be subject to pay taxes on that forgiven amount, since the Internal Revenue Service regards it as income.

So for someone in the 25% tax bracket, forgiveness of $40,000 would mean a $10,000 tax bill at the end of the year, says Mark Luscombe, principal federal tax analyst for CCH, a Wolters Kluwer business and a provider of tax, accounting and audit information, software and services.

“Of course, the concept always strikes people as strange. They’re struggling and trying to get debt forgiven and then are hit with a tax,” Luscombe said.

To help taxpayers during the housing bust, Congress passed the Mortgage Debt Relief Act of 2007, removing that tax burden. For taxpayers, up to $2 million of forgiven debt (or $1 million for those married filing separately) is eligible for the exclusion, according to IRS.gov. Read more at IRS.gov.

The law has been renewed once already, Luscombe said. Trade groups such as the National Association of Realtors are currently lobbying for the relief to be extended once more.

But eventually this law is expected to expire. It’s just a matter of when: “This one is probably going to sunset at some point. It’s a question of whether Congress thinks this is the right time or not,” Luscombe said.

It’s also worth pointing out that taxpayers in so-called “non-recourse” states may be protected from having to pay these taxes even when the law expires, he pointed out. Homeowners would be best served by seeking out the advice of a tax specialist for help in their local area.

Short sales rising

Short sales made up 9.1% of all home sales in March, up from 7.39% in March 2011, 6.67% in March 2010 and 4.79% in March 2009, according to figures from CoreLogic, a provider of consumer, financial and property information.

By Amy Hoak, MarketWatch.com

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President Obama Speaks on Landmark Housing Settlement with Banks

February 21, 2012 by Leave a Comment

The President announces a landmark settlement between the government and the nation’s largest banks that will speed relief to the hardest-hit homeowners, end some of the most abusive practices of the mortgage industry, and begin to turn the page on an era of recklessness that has left so much damage in its wake.

Read the Transcript

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HUDs Donovan: Fannie, Freddie Should Embrace Loan Forgiveness

February 20, 2012 by Leave a Comment

Happy President’s Day everyone! We hope you are having a great holiday and catching up on family time and needed rest!

This video from the Wall Street Journal is definitely a must watch…

 

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Consumer alert: Tips to avoid mortgage modification scams

January 4, 2012 by Leave a Comment

Homeowners struggling to make their mortgage payments should beware of con artists and scams that promise to save their homes and lower their mortgage debt or payments.
If you are struggling to pay your mortgage and are seeking a mortgage modification, keep the following tips in mind:
You can apply to the federal Home Affordable Modification Program (HAMP) on your own or with free help from a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). Applying to the program is always FREE. For more information on how to apply, call the Homeowner’s HOPE™ Hotline at 1-888-995-HOPE (1-888-995-4673) or visit www.MakingHomeAffordable.gov.
 Only your mortgage servicer has discretion to grant a loan modification. Therefore, no third party can guarantee or pre-approve your HAMP mortgage modification application.
 Beware of anyone seeking to charge you in advance for mortgage modification services – in most cases, charging fees in advance for a mortgage modification is illegal.
 Paying a third party to assist with your HAMP application does not improve your likelihood of receiving a mortgage modification. Accordingly, beware of individuals or companies that ask you for payment and tout success rates or claim to be “experts” in HAMP.
 If an individual or company claims to be affiliated with HAMP or displays a seal or logo representing the U.S. government in correspondence or on the Web, you should check the connection by calling the Homeowner’s HOPE™ Hotline.
 Beware of individuals or companies that offer money-back guarantees.
 Beware of individuals or companies that advise you as a homeowner to stop making your mortgage payments or to not contact your mortgage servicer.
Financially troubled homeowners can avoid scams by working with a HUD-approved housing counselor to understand their options and to apply for assistance. Assistance from HUD-approved housing counselors is free, and homeowners can reach them by calling the Homeowner’s HOPE™ Hotline at 1-888-995-HOPE (1-888-995-4673) or by visiting www.MakingHomeAffordable.gov.
This message is courtesy of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Consumer Financial Protection Bureau, and the U.S. Department of the Treasury. To report illicit activity involving HAMP, dial the SIGTARP Hotline at 1-877-SIG-2009 (1-877-744-2009). For more information, visit www.SIGTARP.gov and www.ConsumerFinance.gov.

Santa Monica median sales prices

436 ADELAIDE DRIVE, SANTA MONICA, CA 90402
533 MARGUERITA AVENUE, SANTA MONICA, CA 90402
804 WOODACRES ROAD, SANTA MONICA, CA 90402
230 21ST PLACE, SANTA MONICA, CA 90402
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The information being provided by CARETS (CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS, and/or VCRDS) is for the visitor's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties visitor may be interested in purchasing. Any information relating to a property referenced on this web site comes from the Internet Data Exchange (IDX) program of CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by CARETS, CLAW, CRISNet MLS, DAMLS, CRMLS, i-Tech MLS and/or VCRDS and is protected by all applicable copyright laws. Any dissemination of this information is in violation of copyright laws and is strictly prohibited.

CARETS, California Real Estate Technology Services, is a consolidated MLS property listing data feed comprised of CLAW (Combined LA/Westside MLS), CRISNet MLS (Southland Regional AOR), DAMLS (Desert Area MLS),CRMLS (California Regional MLS), i-Tech MLS (Glendale AOR/Pasadena Foothills AOR) and VCRDS (Ventura County Regional Data Share).

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CARETS data last updated at May 24, 2013 2:07 AM PT
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