Monthly Archives: May 2010

Short sales are touch and go.

I’ve been hearing short sale stories on the ground from many realtors.   The successes and failures run the gamut from three week closings to nightmares such as this one.  I always feel that we should try our best for a loan modification or a short sale because approvals do come in. However, [...]

Is this going to help us with loan modifications? We’ll find out after June 1.

New revised rules under HAMP decree that beginning June 1, servicers are prohibited from foreclosing on a borrower until the borrower has been fully evaluated and their loan modification eligibility determined under HAMP. Servicers will be required to send borrowers a foreclosure process explanation letter detailing the eligibility consideration process and advising borrowers to pay [...]

Is HAFA going to help us with short sales?

After seeing the dismal failure of HAMP, this real estate attorney is skeptical.  I hope I’m wrong.  At least this plan offers the cash incentive ($3,000) to the homeowner instead of to the lender.  Wait a minute, is that going to help matters?  What is the lender’s incentive in this plan?  [...]

What to do when your landlord gets foreclosed upon

Tenants are usually the last to find out when the property they occupy gets foreclosed upon. A landlord has no legal obligation to inform their tenant of an impending foreclosure. However, I can speak to the rights of a California tenant caught in such a situation, and the news is quite good.
1. [...]

Short Sale, Deed in Lieu or foreclosure; YOU MAY STILL OWE TAXES!

One of the most overlooked areas of mortgage debt assistance is the tax consequence. General rule is that forgiveness of debt is considered taxable income. However, there are a few exceptions that have been carved out for mortgages which are important to note:
Straight from the IRS website:
Straight from the IRS website:
1. Normally, debt [...]