Short Sales for Non-Delinquent Borrowers in Florida and Across the U.S.

Starting TODAY, for the first time ever, borrowers, in Florida and across the U.S., who have never missed a mortgage payment will be able to short sell their houses if they can demonstrate a hardship, such as loss of employment or the death of a spouse.

This new rule will allow for underwater homeowners to get rid of their mortgage and also take advantage of the Mortgage Forgiveness Debt Relief Act of 2007, which is expected to expire at the end of the year.

Previously, only delinquent borrowers have been eligible for short sales.

There is a downside. The average person suffers a 150 point credit score loss after a short sale. This will be no different for non-delinquent homeowners because there is no special coding that differentiates them from those who went months without paying their mortgages.

Photo courtesy of stockfreeimages.comThe Federal Housing Finance Agency (FHFA) is currently in discussions with the credit industry to determine if and how this new law will affect credit scoring, but no solution has been found as of yet.

If you are considering a short sale, you should consult an attorney to discuss your options. There are many things changing in the housing market, and it is important to have all of the facts before making a decision.

Source: Inman News

Last Chance for Short Sale Tax Breaks

If you are facing foreclosure or considering short-selling your home, you need to act FAST! The Mortgage Forgiveness Debt Relief Act of 2007 is set to expire December 31, 2012, just over two months from now.

What does this mean?

When you short-sell your home, you end up selling your house for less than the debt owed by making a deal with the bank. The bank will forgive a portion of the mortgage, which becomes a taxable income. The current debt relief act allows homeowners to be exempt from this tax, but this will not be the case starting January 1, 2013.

If short-sellers do not close by the end of the year, they could lose a lot of money, namely 10-35% of the forgiven debt, depending what tax bracket applies. If the bank forgives $200,000 of your mortgage, and you are in the 25% tax bracket, one of the middle brackets, you will have to pay $50,000 in taxes.

While selling your home may not be the most appealing option, it may be the most pragmatic way to prevent future financial hardships.

If you are considering a short-sale or have any questions regarding this or other real estate matters, please contact us at Boyer Law Firm.

Source: Tallahassee.com

Are Short Sales Making a Comeback?

Short sales occur when banks allow the owner to sell for less than the amount owed on the mortgage.” One type of short sale is a pre-foreclosure sale, which increased by 15% in the fourth quarter of 2011 over the same period the previous year. One reason for the growth in short sales was the decline in sales of bank-owned properties “amid concerns about legal challenges to foreclosure processing.” Miami, in particular, experienced more pre-foreclosure sales than bank-owned sales.

If you have a troubled loan or another reason for needing help making a short sale, do not hesitate to call Boyer Law Firm. We can help you obtain the result you are looking for.

Information for this article was obtained from http://blogs.wsj.com/developments/2012/03/01/short-sales-stepping-out-report-shows/.

Do you have a real estate attorney?

Below is a really informative video on why it is so important to hire a Florida real estate attorney that knows specific laws and regulations in your area, such as Miami, Orlando or Jacksonville.

Some of the main advantage points of hiring a real estate attorney is:

- Ensuring that you receive clear title to your new property;
- Drafting and explaining to you the appropriate documents;
- Finalize closing and register the deed in your name.

Your real estate agent cannot legally guide you through a real estate contract, so you should get additional assistance from a Florida real estate lawyer.

Why Real Estate Attorneys are so Important

Below is a really informative video on why it is so important to hire a Florida real estate attorney that knows specific laws and regulations in your area, such as Miami, Orlando or Jacksonville.

Some of the main advantage points of hiring a real estate attorney is:

- Ensuring that you receive clear title to your new property;
- Drafting and explaining to you the appropriate documents;
- Finalize closing and register the deed in your name.

Your real estate agent cannot legally guide you through a real estate contract, so you should get additional assistance from a Florida real estate lawyer.

Please do not hesitate to contact Boyer Law Firm in your real estate matter.