Archive for the ‘Foreclosures’ Category
HR 5830: The FHA Housing Stabilization & Homeownership Retention Act
On April 17, 2008, Rep. Barney Frank introduced in the House a bill that would enable the FHA to refinance home loans at 90% of current market value with the goal of keeping more home owners in their homes. I will track this bill through the House and Senate as I did with the Mortgage Forgiveness Debt Relief Act of 2007.
In essence, this would provide for a government guaranteed short refinance, where, like a short sale, the lender on the distressed loan takes less than is owed. I will post my analysis of the bill in a future post.
Here is the full text of the bill:
Short Sale and Phantom Tax Debt Relief Overview
Lots of questions have arisen from people since President Bush signed into law the Mortgage Forgiveness Debt Relief Act of 2007, whereby in certain circumstances, a homeowner does not have to pay federal income tax on debt forgiven on a loan secured by a qualified principal residence via a short sale, foreclosure, deed in lieu, loan workout or short refinance where the loan amount was reduced and forgiven in order for the homeowner to keep the property.
Bush Signs Mortgage Debt Forgiveness Act
With a stroke of the pen, President Bush signed into law H.R. 3648, The Mortgage Debt Relief Act of 2007, and dramatically changed the lives of homeowners across the country who are facing foreclosure, considering a short sale, negotiating a loan workout, or have done any of these since January 1, 2007.
While this bill has been long awaited by homeowners who would be penalized by the potential phantom tax, and real estate agents praying that it will open the flood gates to more business via short sale listings, the goal of the Administration and legislators is to reduce the number of foreclosures and the need for short sales by allowing homeowners to renegotiate their loans without tax consequences.
Mortgage Debt Forgiveness Passed by Senate
UPDATE: President Bush signs HR 3648, The Mortgage Forgiveness Debt Relief Act of 2007.
It took them close to two and half months, but the U.S. Senate finally got around to passing H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. Initially sent to the Senate on October 4th, the Senate passed this legislation on Friday, December 14th, allowing Senate Finance Committee Chairman Max Baucus to crow a bit about helping the U.S. homeowner dealing with foreclosure or a short sale.
Short Sales, Taxes and the IRS
UPDATE: 12/20/2007 - President Bush signs The Mortgage Forgiveness Debt Relief Act of 2007
UPDATE: 12/14/2007 - Senate Passes Mortgage Forgiveness Debt Relief Bill
Given the current state of the San Diego real estate market, it is no surprise that the most frequently asked question we get revolves around the potential tax consequences of a short sale. A short sale occurs when a property is sold for less than what is needed to pay off any loans on the property. When this debt is cancelled, the lender’s obligation by law is to file a 1099-C with the Internal Revenue Service.
San Diego Foreclosure Bargains - Fact or Fiction?
The most common "I want a killer deal" inquiry I get are from those looking for foreclosure property in San Diego - at 50 cents on the dollar. After all, it is a buyer market, sellers are desperate, and foreclosures almost out number real estate agents right?
Well… not quite. But how about $90,000 under market, when the market is was $399,000 based on identical units selling just two days earlier?
