Aug 082014

Slipping toward foreclosure can lead to feelings of anxiety, depression, and loss of self-esteem. Don’t give up. There are options available to help millions of homeowners rescue themselves from the brink. Since it is crucial to act before a foreclosure takes place, now is the most important time for you to review the following options and solutions.

As a Certified Distressed Property Expert (CDPE), I am trained in assessing all foreclosure alternatives and pursuing the best solution for your own financial situation.

1) Short Sale

A short sale allows the homeowner to avoid foreclosure, minimize financial damage and move on from a burdensome, unaffordable mortgage. In many cases, a short sale allows the borrower to qualify for a new mortgage in just 24 months, as opposed to five years or more after a foreclosure.

A trained real estate agent can negotiate a short sale with your lender if you have three qualifications. First, you must show some type of financial hardship. Second, you must have a monthly shortfall, meaning your monthly expenses are greater than your monthly income. Finally, you need to prove that your debts are greater than the value of your assets (certain investments, property, etc.).

2) Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult for homeowners to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender. This solution does not require the lender’s approval and will “reinstate” a mortgage up to the day before the foreclosure sale.

3) Forbearance or Repayment Plan

A forbearance or repayment plan involves negotiating with the mortgage company to allow the homeowner to repay back-payments over a period of time. The homeowner typically makes current mortgage payments in addition to a portion of the back-payments owed. This option requires lender approval.

4) Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These changes require lender approval and typically result in a lower payment for the homeowner and a more affordable mortgage.

5) Rent the Property

This option does not require lender approval, but does require the homeowner’s ability to rent the house for enough money to cover the monthly mortgage payment.

It is important to remember that there may be unexpected costs associated with the maintenance of a rental property in addition to the monthly mortgage payments. Homeowners should take this into consideration when deciding whether this option will work for them.

6) Deed-in-Lieu of Foreclosure

Also known as a “friendly foreclosure,” a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property. Deed-in-lieu can potentially lessen the damage to a credit score and future loan eligibility, and sometimes the lender will forgo their right to pursue a deficiency judgment, meaning the homeowner will not be responsible for further payments.

7) Bankruptcy

Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. This does not require lender approval, but you must have non-mortgage debts that you claim as a hardship.

Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.

8) Refinance

As opposed to mortgage modification, refinancing means you will be acquiring a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments.

9) Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent who understands the foreclosure process in their area. Unfortunately, many homeowners in today’s market have experienced a decline in home value and may owe more than what the home is worth.

10) Servicemembers Civil Relief Act

(Military personnel only)

If a member of the military is experiencing financial distress due to deployment—and that person can show that the debt was entered into prior to deployment—he or she may qualify for relief under the Service members Civil Relief Act. The American Bar Association has a network of attorneys that will work with service members to help qualify them for this relief.

Pull Yourself Back From the Brink

If you are on the edge, you have no time to waste. Call me today; I’m here to lend a hand.

Place Your Confidence in CDPE

With the right assistance, the stress of facing foreclosure becomes manageable. CDPE- designated agents have received the knowledge and training necessary to assess all possible foreclosure alternatives and pursue homeowners’ best options. A CDPE- designated agent attends several days of intensive, thorough training on foreclosure avoidance and how to negotiate short sales efficiently and ethically. The highly regarded CDPE logo means you are working with the most informed, up-to- date resource available.

May 152012

Mortgage Debt ReliefGoing by the LPS’s preliminary report, 2,060,000 properties are in foreclosure inventory. According to CoreLogic, 11.1 million borrowers were said to be underwater as at the end of 2011 fourth quarter.

That is a good amount of potential debt to be forgiven. However, through the provision of Mortgage Debt Relief Act of 2007, homeowners are relieved from the burden of remitting taxes on their forgiven debt, whether this debt was forgiven through modification, foreclosure, or through a short sale. Unfortunately, this act will be expiring at the end of this year.

Lance Denha, Esq., from Law Offices of Lance Denha, asserts that this scheduled date of expiry for the mortgage debt relief act brings much uncertainty for a number of underwater homeowners who are on their way to a foreclosure.”

Individual borrower would realize thousands in savings if the expiry of this act is extended. For instance, depending on one’s tax bracket, for every $10,000 in forgiven debt could earn $1,500 to $3,500 in federal taxes. Similarly, when a mortgage debt of $100,000 is forgiven after a foreclosure, it could in turn incur $15,000 to $35,000 in taxes owed for the borrower.

However, notwithstanding the warning by the Law Office of Lance Denha that it will be a mistake to rush in handing over a deed before expiration date of December 31, the Congress could still end up extending the debt relief act.

According to Mark Luscombe, Obama included it in his budget to extend it up to 2014. In another statement, principal analyst for tax research firm CCH, said that the, “Congress… might decide it is not as critical as extending tax breaks that had already expired at the end of last year.”

Luscombe argues that this will not stop the congress from eventually acting to extend the relief. He goes ahead to say that, finding a way to pay is normally the only option about these things. The administration has proposed the extension of this act until January 1, 2015.

The condition for exclusion of forgiven debt from taxable income include the debt come from a primary residence, it must also be used for buying, building or for a substantial improvement of a primary residence. The other condition is that the debt must be an acquisition one of up to $2 million, or $1 million if the married taxpayers are filing separately.

The role of this multistate law firm, Law Office of Lance Denha, is to defend wrongful foreclosures against the homeowners.

Apr 262012

Harris interactive a well-known firm in the marketplace research industry conducted a new poll and about 22% of all homeowners have difficulties paying their mortgage payments on time. Furthermore, 7% are capable of meeting their deadline, but have trouble.

Harris Interactive also discovered that about twenty-one percent of homeowners contemplate whether or not their mortgages are classified as being underwater. This term is utilized to designate homes that are so undervalued their mortgages are more than the amount they owe. As the economy continues to sink, a larger number of owners are starting to fall into this classification.

The poll reported that mortgages are decreasing. In Two thousand ten, sixty-nine percent of adults had mortgages; in two thousand eleven that figure fell to sixty-six percent. This shows two trends: individuals are not just losing their houses, but they are not purchasing anything new even though there are a larger number of inexpensive homes on the market.

Nonetheless, when it comes to people having troubles with their mortgage payments, there is a decrease between the figures acquired in two thousand eleven and the ones attained in two thousand ten.

Harris Interactive believes it is still too soon to decide whether there was real improvement. Foreclosure could be a chief reason that the statistics are declining.

Still, the stats do point to a rather slow recovery. The reason is they did match some other data from a study that was collected from Harris Interactive.

Just in terms of numbers, three thousand one hundred and seventy-one adults were polled in this latest study concerning mortgage payments. The poll happened in March of two thousand eleven, and it lasted seven days. All of the respondents took part of their own volition therefore; researchers did not compute the probability of error. No payment or other inducements were given, further solidifying the honesty of the information.

Feb 292012

Harris Interactive, one of the leading names in market research industry, have recently undertaken a poll on timings of mortgage payments, the results of which are frightening and leaves profound consequences on the lending market. The number shows that around 22% of homeowners are finding it extremely hard to pay off their mortgages in a timely fashion, while nearly 7% of the lenders are found to be capable of discharging their loans within the stated period, that too with an extra effort on their part.

The research by Harris Interactive further reveals that around 21% of householders are completely unaware of the status of their mortgages regarding underwater category; a financial term that best describes under valued collaterals not being able to cover their indebted sum of loan. With a shrinking economy and a shrinking middle class who forms the majority of lenders, it is apparent why the number is increasing so fast in terms of households categorized under the underwater category.

Another important fact highlighted by the poll is the noticeable downslide in mortgages. Comparing the year 2010 to 2011, adult mortgages declined from 69% to 66%, a certain 3% reduction in percentage within the span of a single year signified couple of substantial facts. One is that despite the prices of real estate not in its majestic boom, prospective homeowners are rather reluctant to buy a house. The second and more apparent fact is since people are toiling to get off their debt, they are not encouraged to invest in new homes.

Amidst such berserk prospects, lenders can breathe a sigh of relief considering the fact that there was a downfall in number of individuals who were going through acute difficulty settling their mortgage installments in 2011, compared to the figures in 2010. However, Harris Interactive have their share of doubts over this substantial progress and have instead credited foreclosure behind such impressive stats.

Still, if the numbers above are considered fair, it cannot be asserted as a normal recovery if compared with industry standards. Harris Interactive compared these numbers with the collected data from another study and came to a conclusion that the growth is undoubtedly slow.

All the above facts were collected from an extensive research conducted on March, 2011. The research lasted for a week involving 3171 adults who were interviewed on the subject of mortgage payments. Since all the participants took part in the research at their own will, no provision was made for any possible sampling errors. The poll was conducted with an objective and impartial approach, which made the results unerringly definite.

Nov 282011

MLS Listing

Apr 012011
by The Martignetti Group


Throughout the nation, as in southeast Florida, real estate markets are being negatively affected by the high vacancy rate. According to a recent U.S Census Bureau report, the vacancy rate for the nation is at 11.4%. The problem with a high vacancy rate is that leads to lower housing prices, which restricts the ability of the market to recover from the collapse of the housing bubble.
Of all the states, Maine has the highest vacancy rate, at 22.8%, but Florida is only slightly behind, at a rate of 17.5%. Some problems, however, have been raised concerning how the U.S Census Bureau determines vacancy.
These reports include second homes, vacation homes and beach houses as vacant if their owners do not spend a majority of their time there, as the census allows participants to select only one home as their residence.
For real estate analysts, the vacancy rates may seem to be an indicator of the vitality of the market, but Census Bureau reports have to be understood properly, as the situation is very different between a vacation home or a southeast Florida beach house, and a foreclosed home. In order to get a more accurate vacancy rate, a closer look that takes owned but not technically lived-in property into account is required.
For some states, further research has shown that a majority of these vacant properties are not truly vacant properties. In Maine, for example, over two-thirds of the vacant properties are vacation homes. In Florida, however, the vacancy rate is still high after taking forms of owned but technically vacant property into consideration, at around 10%.
While hopes are high that the southeast Florida real estate market will recover faster than the more conservative estimates, data such as vacancy rates is showing that the market may still have some tome to pass before making a full recovery.
Feb 092011

by The Martignetti Group

Now what? My short sale was successful, although I just received a 1099-C for the cancelled debt. What is a 1099-C and what do I do now with the IRS?

Read this “How to” article “How to File Insolvency With the IRS!”

First and foremost, be sure you are working with an accountant who is experienced with this situation. You can certainly call me for referrals if you want or need!