Connect2Agent - Home Buyers and Sellers

Homesellers: The IRS will tax the debt your mortgage company forgives in a shortsale

In an earlier post, I discussed short sales as an option to Sellers who want to avoid foreclosure.  A recent article by Lance Churchill for REALTOR Magazine Online, "After the Short Sale:  Taxing what isn't There" explains the tax ramifications to homeowners who sell their home for less than what they owe.

Churchill explains that if your mortgage company forgives your original debt and approves a sales price that is lower than what you owe on the home, the IRS will still consider the debt income and it will be taxed accordingly. 

The National Association of REALTORS is supporting the S.1394, the Mortgage Cancellation Tax Relief Act which would cancel the law requiring homeowners to pay taxes on the debt their mortgage company has forgiven in a short sale.

For more information about tax ramifications on a short sale, contact your accountant for professional tax advice.

Posted by Rebecca D. Levinson

Is Florida's real estate market ready for a rebound? Three Connect2Agent members weigh in.

If you are an investor, homeowner, or homebuyer with an interest in real estate in Florida you will want to review the latest stats released by the Florida Association of REALTORS   for home sales in 2007.

According to the Florida Association of REALTORS press release on Tuesday, "Florida's Existing Home Sales Ease in August 2007" the sale of existing family homes "...was closer to activity in August 2001 and 2002-before the peak of the housing boom years..." and the median sales price for single family homes showed "...an increase of 64.2 percent over the five-year-period, according to FAR records".

Do these numbers mean that Florida is ready for a rebound?  I asked three Connect2Agent members in Fort Lauderdale, Gainesville and Panama City to weight in on this topic.  Here are there thoughts.

Homeowners: How to detect foreclosure scams

Foreclosure is in the news and so are companies promising to save homeowners from this financial nightmare.  As a homeowner facing foreclosure how can you avoid being duped by the scam artists emailing, calling and advertising to save you from your situation?  

A new article from Nora J. Carpenter, executive director of the Better Business Bureau serving Southwest Idaho and Eastern Oregon, gives four tips to homeowners who who are considering working with a mortgage foreclosure rescue company. The tips from Carpenter are rooted in her experience with victims of these companies and an increase in the number of complaints being filed with the Better Business Bureau.

Take a few minutes to read through the article.  If you have any experience or tips on dealing with mortgage foreclosure rescue companies, I invite you to comment.

Posted by Rebecca D. Levinson

Homebuyers: Business 2.0 reports on 10 cities poised for a housing recovery

Which cities will give you a good deal in today's real estate market if you are an investor or homebuyer?

Business 2.0 magazine and Moody's Economy.com named 10 cities that they consider to be at the end of the housing downturn and that are ready for recovery. In the article, "How to play the real estate bounce back", by Paula Kaihla, Business 2.0 magazine senior writer, she names ten cities for a housing recovery:  Dallas-Ft. Worth, Indianapolis, New Orleans, Atlanta, Montgomery, Memphis, Mobile, Austin, Houston, and St. Louis. 

I spoke with a Connect2Agent Member for three of the housing markets identified in the article: Dallas-Ft. Worth, Indianapolis, and New Orleans, for their take on the housing recovery in their areas.  Here are their views on the topic:

Three tips for homebuyers to consider before purchasing a home in foreclosure

The number of foreclosure filings last month was up 36 percent from July and 115 percent from August 2006 according to California based Realty Trac Inc. 

Foreclosed homes add another choice for homebuyers in today's market.  I spoke with three Connect2Agent members who have real estate experience in the top 10 cities with the highest foreclosure rates and asked them, "What should a homebuyer consider before they look to buy a home in foreclosure?".  Each Connect2Agent member gave three sound tips for homebuyers.

New FHA loan might be the answer for homeowners who are late on their payments

If you are a homeowner who has good credit but is delinquent in your mortgage payments, you might be able to avoid foreclosure by refinancing to a FHA loan.

The FHASecure Act is only for homeowners who are currently delinquent in their mortgage payments.  This initiative was launched this August. Previously any homeowner who was delinquent in their mortgage payments would not have been able to qualify for an FHA loan.

Homebuyers: Five credit myths revealed

Having good credit helps you to get a low interest rate on your mortgage.  Jed Jones (owner of Jed C. Jones consulting) reveals the truth about five credit myths in his article, "Improve Credit Rating- Dispelling 5 Myths".  These important issues are summarized below:

1.  Improving your Credit Score can help you financially

Some people are under the impression that raising their credit score will not help them.  The truth is, the better your credit score is the better interest rate you will be able to get. 

HomeSellers: Three factors to consider before you refinance your home

Refinancing your home mortgage can help to lower your monthly mortgage payments, consolidate your debt, and help you to use the equity in your home to pay for important home repair projects.

How do you know if this is a good time for you to refinance?

Michel's (of Lendadvisors.com) article titled, "Is it not too late to refinance mortgages?" provides seven factors for homeowners to consider when refinancing their home:

Home buyers and sellers: How the new FHA Bill effects you

This week the U.S. House of Representatives passed the  bill proposed by Representative Maxine Waters "HR 1852: Expanding American Homeownership Act of 2007".  The purpose of the bill, as stated on Govtrack.us is to   

"To modernize and update the National Housing Act and enable the Federal Housing Administration to use risk-based pricing to more effectively reach underserved borrowers, and for other purposes."

Senior homeowners: Get the facts about reverse mortgages

Are you retired and in need of additional income?  If you have lived in your home for awhile and have been able to build substantial equity in your home a Reverse Mortgage could be the solution you are looking for. 

The U.S. Department of Housing and Urban Development's website article on Reverse Mortgages, "Top Ten Things To Know if You Are Interested in Reverse Mortgages" provides the clearest explanation on the subject that I have seen on the internet and is summarized as follows:

Reverse Mortgages and how you can qualify.

A Reverse Mortgage is a home loan that allows you to cash out on some of the equity from your home.  As long as you live in the home you do not need to make any payments on the reverse mortgage.  A reverse mortgage actually pays you for living in your home.