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We’ve been helping people all around the Northern Virginia area, Maryland and Washington D.C. to avoid foreclosure, to do short sales and one of the questions that I’m often asked is, “What’s the tax considerations of a short sale?” I’m not an accountant and I’ll definitely refer you to an accountant to understand that but there’s something else that you can do. You can just Google the “Mortgage Forgiveness Debt Relief Act of 2007″, which will direct you to the IRS page about short sale debt relief that goes through all the considerations that you may or may not have, and likely you want to have consideration but again you can talk to a tax accountant about that or a CPA.

One of the things that you should know is that at the end of 2012, the way that the law currently stands is that the Mortgage Forgiveness Debt Relief Act of 2007 will expire. At the time that you are watching this, that may or may not change but again, we don’t know, I mean, we know the current resources and how the government works and there’s no knowing if people that are putting their properties in the market of short sales at the end of 2012 are going to qualify for this or not.  So I suggest to talk to a short sales specialist to see what the current updates are in regards to that law, if it’s still in act or not and if it’s going to be able to help you to avoid any potential taxes. If you have any specific questions, go ahead and give me a call on the number on this web form or fill out the information on the page and I look forward to helping you.  Thanks!

A short sale property is being sold by a seller that is upside down on their mortgage, has a valid financial hardship and needs to sell. In other words, it is still owned by the homeowner. The sale of a short sale is contingent on the home owner’s lender approving the sale for a deficiency. A bank owned property – you guessed it – has already been foreclosed on and is owned by the bank.

With the sluggish economy, job layoffs, adjustable rate mortgage payments, declining home values, soaring medical bills and a number of other factors, many people are finding it difficult to keep their homes and could be facing the possibility of losing their homes. A national epidemic is looming. Are your ready? We are in the most challenging real estate market since the Great Depression with no end in sight for the immediate future. The government can only do so much to help victims of this situation. Dan and Traci have helped numerous people in Virginia, Maryland, and Washington DC avoid foreclosure and sell their homes for less than what was owed to the bank.

• Are you stressed out about mortgage payments?
• Do you think that your only option is a foreclosure?
• Are you considering ‘walking away’?
• Struggling with a loan modification?
• Is a short sale right for you?
• How to buy a home after a short sale?

Learn the answers to these questions and more when you read our book, “Should I Short Sale my Home?”

Of course streamlining the short sale process would be a GREAT idea! That being said, considering the past efforts of our government to improve this process, I am skeptical that this bill will be successful if it becomes law. Programs created in the past such as Home Affordable Foreclosure Alternatives Program (HAFA) have done little to improve the process. I hope that Congress considers their past failures when debating this bill. We are going into year 4 of this real estate depression, some stability in regards to improving the short sale process would be helpful to our economy.

On Tuesday, March 29, 2011, eleven Democrats joined Republicans and the House voted 252 to 170 to stop any new funding of the program.

Do you have more than 1 loan? -If you have multiple loans, then there are more than one lender to negotiate with.

Who are the lenders? -Not all lenders are created equal.  Some are more willing to work with you than others.  An experienced short sale Realtor can guide you through which lender typically is easier to work with.

Do you have a valid financial hardship? -If your hardship is valid, the lender will more likely not give you problems.  Most hardships that they accept have to do with 1)  Changes in Money, 2)  Changes in Family, or 3)  Changes in Health.

Who is the investor? -Often the bank that you pay your mortgage to is only servicing the loan.  The owner of the loan may not be the direct negotiator.

Who is the Realtor? -Experience counts when doing a short sale.  Short sales require diligence, perseverance, commitment, and know how.  If you hire the right short sale Realtor, your short sale will likely take less time.

Search Homes for Sale in Alexandria, Short Sales in Alexandria, Bank Owned Homes in Alexandria, Luxury Homes in Alexandria .  Need help with a short sale?  Virginia Short Sale Specialist, Maryland Short Sale Specialist

If you have a great relationship with your tenants, it is more likely that they will cooperate.  Your tenants interests are not the same as yours.  From their perspective, they would not want you to sell the home because that would mean a new landlord.  From a buyer’s point of view, unless if they are an investor, a tenant occupied property would not be ideal.

With all of that being said, it is feasible to short sale a rented property.  When we advise on this situation, our first advice is to see how long your lease is.  If it is not going to expire soon, we advise that you speak with the tenants to see if they would be willing to break the lease early – often they will.

Also understand that tax implications are different for an investment than a primary residence.  These differences should be considered.

If you are in this situation, you may have options.  Speak with a short sale professional to see what your choices may be.

Search for Annapolis Short Sales,  Annapolis Homes for Sale, Annapolis Bank Owned Homes, Annapolis Luxury Homes, Annapolis Waterfront Homes

I just got another letter from Saxon saying they “ are reviewing your request but have not received all the documentation required” and if they don’t receive the docs in 10 days they will consider the request withdrawn. I think we’ve all put in too much time to have Saxon slip through some imaginary hole.

[Begin Fantasy Dream Sequence]

Why can’t I just send them a certified letter saying if they don’t send me the ruby slippers and the broom of the witch in 10 days the entire loan will be considered forgiven free and clear?

[End Dream Sequence]

Of course this email was sent to us after we have verified 6 times that they have received our complete short sale package. We shall continue to be diligent in negotiating with the Wicked Witch of the East. Perhaps we shall soon see the Wizard behind the curtain

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