Welcome to our Tuesday Talk!

by qinfovio 5. April 2012 15:38

 

Good afternoon,
 
The home inventory is low and our market is moving, but I am not completely sure that we hit the bottom yet.
The perfect example is with one our offer that we have in Marina, house was sold in 2010 for $407,000 and appraisal came back today at $360,000.
So, this will take me to the subject today concerning  the last year for short sale and it should reduce also the amount of foreclosure.
                                                                          
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The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately).
The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a
decline in the home’s value or the taxpayer’s financial condition. Here is the link with more information and you might want to check with
 
It included all property purchase prior to 01/01/2009. So for the case for this house in Marina, they can short sale if if they want, but seller will have to pay tax
on lender lost. If there is a $70,000 lost and their tax brake at 30% they will end up paying $21,000 in tax.
 
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Last weekend I ran into my neighbor telling me that they just bought a home and they will be dumping their condo into foreclosure or a short sale.
I told my neighbor that the Tax Forgiveness/Debt Relief Act was not made for this purpose and they will have to pay tax on it.
Her respond of course that her friend did the same a year ago and that this year was the last year to do it.
 
It is just a bunch of fraudulent acts just like that one that started our credit crisis and I will tell you next week what it will cost us.
 
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I also met a good local non profit organization the Housing Resource Center of Monterey County in Salinas, go check their site at www.hrcmc
They can  help homeowner through their foreclosure counseling services. It should be the first step for homeowners that need help.
They can also help you plan on how to save money, budget yourself to buy a home...and the little stuff that we used to do and conveniently
forgot in the twenty century.
 
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I run through a good story while visiting some neighborhood and this one was month ago on Lorimer Ave South Salinas.
While I was knocking at the door of a homeowner that was in my NOD list, I was also not sure if the home was occupied.
 
The neighbor came to me, mentioning that the house was vacant for almost a year, that she was parking her car in the driveway
and she was mowing the lawn so it will look like the property was occupied. I told what an inspiration she was for her community and I should
bring the media.
 
 Thanks and I will see you next week!

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