Loss Mitigation by Short Sale

Posted by webmaster on Jan 27, 2012 in Short Sale Arizona - Phoenix - Queen Creek | 0 comments

A California short sale, or short sale in any other US state for that matter, has become a popular way to sell a property in recent times. This is primarily because of the dreadful foreclosure crisis the country has been experiencing. It is a form of loss mitigation, and prevents a foreclosure from occurring, but still has quite a dramatic effect on the home owner’s credit rating.

If a home owner can prove beyond doubt to a lender that he is in dire financial circumstances and can no longer afford to repay his mortgage lien, the short sale may be allowed. This is known as proving economic or financial hardship. The sale of the real estate will mean that the lender takes a loss on the actual loan amount owed to them.

A mortgage lien is the legal agreement which uses the actual property to secure the underlying loan. California is primarily a “trust theory” state however, and this means that the Trust Deed and not the mortgage is the primary instrument of security. The Trust Deed is also a legal entity and essentially the property is held in trust until such time as the underlying loan has been paid in full.

A Trust Deed generally contains a clause which is called a “power of sale”, which allows the trustee to foreclose on the property by non-judicial means. A non-judicial foreclosure neither takes as long to finalize, nor is as expensive as a judicial foreclosure. But it can still be a lengthy process to bring to a head, so Californian lenders will consider allowing a home owner access to the short sale, provided they qualify.

The US Government has also taken a look at the short sale with a great deal more interest in recent times in an attempt to bottom out the foreclosure crisis. However the process, unlike foreclosure, is not actually governed by law. Only the length of time to expedite a short sale has undergone some legislative scrutiny at this stage.

The home owner is expected to facilitate a short sale through the workout or loss mitigation department of their bank or other lender. Sometime the lender will allow the proceeds of sale to settle the debt in full, even if there is still an outstanding amount owed. But this is the exception and not the rule, they often still pursue the home owner with a deficiency judgment.

There are some US states that do not allow lenders to pursue deficiency judgments, and fortunately California is a one-action rule state. So in the case of a non-judicial foreclosure a deficiency judgment is not allowed, this rule should also apply to the short sale. However some lenders will try to pursue the home owner for settlement in full. Best make sure if you are in this position that you know what your rights are!

A short sale is a hybrid transaction which is accepted business practice, and as we said previously, not governed by any regulatory agency. It can only take place under extenuating circumstances. However if you find you find yourself under circumstances such as these and you lender will not allow a short sale to take place, you can approach government agencies which provide for mortgage assistance to help negotiate with your lender for this option.

All the California Short Sale facts, without leaving a single stone unturned, now available at http://www.nphsrealestate.org/short-sale

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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Are You Concerned About Tax Ramifications In Doing A Short Sale?

Posted by webmaster on Jan 25, 2012 in Uncategorized | 0 comments

Hi, my name is Kevin Kauffman. I am part of Group 46:10, one of the nation’s best short sale and real estate teams located right here in Maricopa. Are you having trouble making your mortgage payments or are tired of being upside down on your mortgage? We at Group 46:10 can offer you different alternatives to alleviate some of these problems. As one of the top short sale teams in the nation, we’ve completed over 500 short sales in the past 4 years and have a closure rate of over 90%.

I’m here today to talk to you a little bit about short sales and tax ramifications. One of the issues that we hear quite frequently from potential clients is that they would like to short sell their home, but are worried about the taxes they will have to pay after the sale. Maybe you have heard from other homeowners that have done short sales that there were some tax liabilities and want to find out more.

The Mortgage Debt Relief Forgiveness Act, which ends at the end of this year, allows homeowners, such as yourself, to not pay taxes on the forgiven amount if the property is their main residence and the selling price is less than $2.5million. If you are thinking about short selling your home, you need to act quickly because the transaction needs to be closed by the end of 2012 in order to qualify for The Mortgage Debt Relief Forgiveness Act.

Please give us a call or fill out the form on our website, group4610shortsale.com, to find out more about this act or if you have questions about your particular situation. If you do not qualify for this act, don’t let that stop you from short selling your home. We have a few different ways to avoid paying taxes as well. A practiced short sale specialist, such as myself and my business partner Fred, can discuss those different options with you.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Tax Foreclosure Properties – What They Are, and How to Buy Them

Posted by webmaster on Jan 25, 2012 in Foreclosure | 0 comments

Everyone who owns a property must pay taxes on it each year. If the owner doesn’t pay his or her taxes, the property’s status becomes delinquent. Fees accrue, and further taxes continue to pile up as time goes by. If the property isn’t brought current within a specified period of time, which differs state by state, then the property will eventually be foreclosed upon and sold at auction by the county in which it’s located. These tax foreclosure properties provide a great opportunity for savvy real estate investors.

There are several reasons why tax foreclosure properties are better investments than mortgage foreclosure properties, but the biggest is that they are almost always free of mortgages by the time they reach the sale. Mortgage companies will bail out the back taxes on properties they have an interest in long before they get to the point of government foreclosure. Since houses without mortgages are often also houses without other liens, the equity is up for grabs if you’re lucky enough to buy one.

You’ve likely seen infomercials recently claiming you can make thousands by investing at the tax sale. They’re only half right. The other half is blatant exaggeration to try to get sales! Tax foreclosure properties are a great investment, but you’ll have to avoid the tax sale to get the best deals. Competition at tax sales is fierce, and often the little guy can’t compete with the tax investing giants that go after the best properties.

The way to get these properties is by waiting until time is running out for these owners- this is usually during the period AFTER the tax sale. Most states give owners a year or so to “redeem” their property after it’s been sold at tax sale. When that period of time is up, there is no recourse- they have lost their property permanently. So by waiting until shortly before that redemption period is up, and then contacting the owners directly, you’ll be catching them at a time when they’re highly motivated to sell their property to you for a steep discount. Sometimes, these owners have resigned themselves to losing the property, and are just happy to be selling it to someone other than the government.

After you’ve purchased the property directly from the owner? You just pay off the delinquent taxes and fees, and the property is yours.

Few investors exploit this route. Why? Could be because it’s more work, but it’s more likely they just don’t know where to begin. If you’re willing to put in the time and effort to find these people, you’ve just discovered a lucrative way to invest in free and clear real estate… with next to NO competition.

Click here for more info on this investing method- including how to obtain or compile your own list of properties about to be lost to tax sale in your area or anywhere in the country, and how to find their owners.

Also, learn what to say to an owner when you talk to them on the phone, to “grab their deed” for as little as $10! (Yes, really!)

M. Dawson is a Chicago area writer, real estate investor, and entrepreneur.

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Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

What Are Your Short Sale Choices?

Posted by webmaster on Jan 24, 2012 in Uncategorized | 0 comments

Hello, are you considering a short sale but you’re not quite positive of what your options are? Well, my name is Kevin Kauffman and I’m a part of Group 46:10, Maricopa’s premiere short sale workforce and Maricopa’s premiere short sale team. I’m here to let you know that you do have options and I would love to speak to you about them. My team and I have closed over 500 short sales in the last 4 years. We’re here that will help you so if you happen to need any help, whether or not you could have an FHA mortgage or perhaps you’ve bought a VA loan, we will help. Maybe you are undecided because there are totally different rules around FHA and VA loans compared to loans with your typical credit union or with Bank of America or Wells Fargo.

Come to the specialists and get a free session with us. We would love to talk to you about what your options are. We have worked with each bank out there. We have worked with over 100 banks. We have handled Fannie Mae and Freddie Mac, and FHA and VA, and anyone and everyone in between and we know that we are able to assist you.

So please give us a call today. You can reach us at 480-449-6642. You may as well fill out a form right here on our website. For those who’re not on our website, you may go to us at Group4610shortsale.com. Here you can get your free short sale decision calculator results as well as request an in individual meeting. We would love to speak to you about your choices and if a short sale is right for you, we would love to help you. Thanks so much and have an incredible day.

For more information on short sales and how to avoid foreclosure, visit the Group 46:10 blog or you can also contact the Group 46:10 team and get started today.