Short Sale update- mortgage cancellation relief is extended for one year to January 1, 2014.
On January 1- the Senate and the House passed H.R.8 which is the bill to deal with the fiscal cliff.
So we have another year to be doing short sales with the mortgage balance being forgiven for tax purposes. In reality the debt relief act did not apply for IRS purposes to investors and second home owners. Most homeowners who are losing their homes are insolvent anyways so the IRS debt relief is not a huge benefit to them. It is used more as a political angle for special interest groups.
In other real estate related taxes as part of the new legislation there were a few changes:
There is a deduction for mortgage insurance premiums for income tax filers who make below $110,000. The deduction for mortgage insurance premiums is extended through the end of the year of 2013 and it’s also retroactive to cover 2012. New
Leasehold improvements for qualified leaseholds on commercial properties – 15 year straight-line cost recovery has been extended to the end of 2013 and made retroactive to cover 2012.
The energy efficiency tax credits for homeowners who make energy improvements on their existing homes is extended to the end of 2013 and made retroactive for the year 2012 with a tax credit of 10% up to $500.
Now here come my liberty busters and you will get some of my commentary here to:
There’s a permanent repeal of the “Pease Limitation”. Under the new H.R 8 legislation the agreement permanent repeals the limitations that reduce the value of itemized deductions except for it has been reinstituted for high income filers.
The high-income filers are those who make more than $250,000 and joint income tax filers who earn over $300,000. These are also going to be indexed for inflation and they will rise over time. The amount of your adjusted gross income above the threshold is multiplied by 3%. This amount is then used to reduce your total itemized deductions.
My biggest question always comes about taxation – is it fair to charge some people more taxes than other people? And why? What is there in our constitution that states that people can be treated differently based on their production? The biggest problem with this provision is that married couples are basically punished because if they were instead single people living together filing separately they could each get a $250,000 threshold for a total of $500,000 instead of $300,000. Again, I am married and would like to have equal benefit as two roommates living together but I don’t want special treatment. Just treat everyone equally.
Now in a lot of places in the country a couple would be living very well with the family of four at $300,000 annual income but they certainly would not be considered rich in most of the urban cities of this country. In fact, after they pay their state taxes (which we do not have in Florida) they are already being taxed at 60%. Do the math. Living in Manhattan with a family of 4 is not going to get very far on $120,000 annually to live on. I have not even gone into running a small business. That is a whole other topic of which I can discuss from experience on.
The only fair tax is a fair tax and that’s certainly not going to be implemented anytime soon.
Capital gains. Capital gains rate is going to be staying the same at 15% for those individuals up to $400,000 and $450,000 for joint filers. After that amount the gains will be taxed at 20%. For real estate capital gains the 250/500K exclusion for sale the process principal residence remains in place.
My opinion is that the money you invested is money you already paid tax on, so in essence, you are getting double taxation on your investments. I think this is cooked up by the banksters, wall streeters and the politicians to try to force you to keep your money in your investments because before you take it out, you are going to think twice. But for retired people they don’t have a choice. This is a huge disservice to retired people. Again, this is not treating everyone fairly in our tax structure.
Again we’re treating different people differently which is very unfair and is punishing people who want to take proactive measures for their own retirements and their own wealth.
The ever popular and unpopular estate taxes you are taxed when you die. Your family has to pay taxes when you die on whatever you left behind under these circumstances.
The first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax. So we made a little bit of progress there but again we are not treating people fairly across the board and equally as Americans.
Anything over $10 million will be taxed at the rate of 40% up from 35% and those exemptions are going to also be indexed for inflation.
Needless to say I am not happy at all about the H.R.8 legislation. I believe there are too many special interests involved and too many people wanting to get back scratched along with government not making sound spending cuts and not working on the deficit. There is a total lack of responsibility on the part of our leaders. For every $42 in spending they are getting they are only cutting $1 of spending! DO THE MATH!!! How does that equate to financial responsibility. I would be out of business if I ran my business like that.
I am sure that NAR is happy with the outcome because they are a special interest group that lobbies for real estate interests. But whenever you get into I want this, the other side says, but I want this. As long as government makes deals with special interest groups and their cozy pals in big companies nothing will be fair. But if NAR really stands for “under all is land” and we must protect private property then NAR needs to stand to protect ALL private property. Taxation on private property especially real property violates the very principles of private property rights.
authored by Katerina Gasset
Another Wellington short sale sold and closed by Nestor Gasset and Katerina Gasset of International Properties and Investments LLC.
We just closed on one of our Wellington short sale listings- at 3166 Hartridge in Olympia subdivision in Wellington Florida. The listing price was $277,777.
Richard Zaretsky attorney at law in West Palm Beach Florida handled the short sale negotiations on this listing. You may know Richard Zaretsky as he has many featured posts on ActiveRain.
We listed this short sale in September 2011 and closed last week in April 2012. It took about 7 months to close on this short sale.
The sellers were able to get a waiver of deficiency.
Sellers were current on their mortgage.
The sales price was $270,000.
You can do a short sale being current on your mortgage! Call Nestor Gasset and Katerina Gasset at 561-753-0135 for a confidential short sale interview to go over your foreclosure options and short sale options.
You don’t hear homeowners commonly looking for an aggressive Wellington short sale agent, which is unfortunate since it is exactly what they need. There is just one but highly essential difference between passive and aggressive short sale agents for Wellington homes, and it has nothing to do with their skills, knowledge, or even their experience and expertise. Ultimately, it all boils down to tenacity: what an ordinary agent would only be willing to work on for days or weeks, an aggressive agent would be willing to work on until the very end.
Why Perseverance Is Critical for Short Sale Agents of Wellington Homes
Short selling a home is far different from trying to sell a traditional residential property.
Short sales require several parties’ approval before they can push through.
While you don’t necessarily seek approval from every party involved with your home’s ownership or mortgage, there are many instances when you do have at least notify involved parties about your desire to short sell your home. Creditors would naturally have to be informed – all of them. Sometimes, your home insurance company may have to be informed as well. There are also times when you have to go the extra mile to look for the current owner of your loan, and that is something you would be very thankful to have an aggressive Wellington short sale agent for.
Short sales are something banks are naturally adverse to.
You have to at least appreciate the “sacrifice” you are asking banks or creditors to make on your behalf. With short sales, you are asking them to accept a much lower selling price for the sale of your home and consider it as full payment of your mortgage. You definitely need an aggressive and eloquent agent to represent your side on the negotiation table and get the other party to see why your short sale is better for everyone concerned.
Short sales require numerous documents.
The list goes on and on for the documents that you have to include in your short sale package, and if your agent doesn’t know what those documents should be then you are in bigger trouble.
To start with, you need to pass a short sale hardship letter and perhaps include other financial documents to serve as evidence or proof for your claim of financial hardship. Your agent may even have to work with your banker or financial manager in order to effectively present a picture of potential financial hardship if your application for short sale is not approved. With foreclosures, banks have to shoulder the burden of showing proof. With short sales, it’s the opposite – and that’s why you need the help of a very patient – and aggressive Wellington short sale agent at your side.
Florida short sale agents are fast becoming a dime in a dozen, but unfortunately that does not mean they all come with the same arsenal of competence and experience that every homeowner would find helpful. Many homeowners are unaware that short sales – in spite of being a “buzz” word for many only in recent years – have been around for a long, long time. It’s only natural, however, that lenders generally prefer that homeowners remain unaware of this option.
Knowledgeable – and Seeking to Learn at All Times
The very best Florida short sale agents won’t just make you understand what short sales are and what your best options are for convincing your lender to agree to one. They are also constantly working to ensure they are updated with the latest changes on laws or regulations concerning short sales and set by industry boards, organizations, the government, or any other important party. This way, you won’t be caught unawares by a sudden loophole that could cause your entire deal to fall through.
Hardworking – and Does Not Know the Meaning of “Quitting”
When it comes to short selling a property in Florida, which is one of the hardest hit areas by the recent real estate market collapse, it is very important to have a hardworking agent at your side. More than that, you need an agent who does have the word “quitting” in his or her vocabulary.
Short sales can try the patience of a saint. If foreclosures can take a year to complete, so can short sales– and it can even take longer if you don’t have the help of a strongly determined agent. “Convince,convince, convince” is the motto of every good Florida short sale agent because they have to perpetually set appointments with the necessary parties until they get all the right signatures on the dotted line.
Always remember that with short sale, it’s not just a homeowner’s desire to sell that matters. Even if you have the very best offer on the table for the kind of property you are selling, the deal still won’t push through without your lender’s approval.
Resourceful – and Capable of Thinking out of the Box
Last but not the least, you need to find an agent who is not just resourceful but is also able to think on his or her feet and consider out-of-the-box solutions when traditional options are insufficient.
HAFA short sales and Freddie Mac short sales require the homeowner to have a financial hardship. But most of the other investors and servicers will approve a strategic short sale . Choose Florida short sale agents that know how to work with your strategic short sale if you don’t have a hardship. You may be required to participate in the loss with a cash contribution at closing.
Foreclosure Scam Alert! Beware of False Promises To Save Your Home.
Florida Attorney General’s office filed a lawsuit against two companies accusing them of misleading homeowners. Remember, if it sounds too good to be true, that is most often, your intuition warning you it is.
Florida Attorney General’s office accused MGD Management LLC and CRS Marketing LLC who also is known as CRS Legal Management Group of misrepresentation. They are accused of marketing “STRATEGIC DEFAULTS”.
There is a difference between making promises about strategic defaults and giving options about strategic defaults. When we speak to homeowners about their plans for strategic defaults we don’t take any money from them and we tell them ALL their options and that there is NO guarantee of any particular outcome. The attorneys we trust do likewise.
These two firms were marketing this:
“Stay in your home for FREE for years for $300 a month! We stall your Foreclosure!”
The attorney general of Florida says this is deceptive marketing. They are correct in our experience because while many homeowners can even stay in their homes without making a mortgage payments sometimes for years- there is no surety this will happen.
But they are also making claims that homeowners can keep their homes for years without paying thier taxes, insurance and HOA Fees!!! And we know about not paying your HOA fees don’t we!!! Click here to read about what happens when you don’t pay your HOA fees!
We know homeowners who have not made a mortgage payment in four years while others are rushed through the foreclosure process in months.
Most of the time these attorneys who make these claims and take the $300 to $500 per month are not doing anything for that money. There is a backlog of foreclosure filings in the court system.
Attorney General Bondi said vulnerable homeowners need to be protected. She said that these companies preyed on Florida’s distressed homeowners who were already experiencing financial hardships. She went on to say that Florida residents are protected under the law from deceptive practices.
Broward County Circuit Court issued a temporary injunction and granted a limited freeze on the company’s bank accounts. The court ordered the companies to stop all the alleged misrepresentations.
Be careful out there. Call a reputable attorney for your foreclosure defense. Call a Licensed Realtor® who is experienced in doing many short sale successfully to go over your options with no obligation. Licensed Wellington Short sale agents are permitted to handle your short sales. Doing short sales may be your best option.
Call Nestor Gasset and Katerina Gasset today 561-753-0135 for a confidential phone short sale evaluation with no obligation and no pie in the sky promises. There are no guarantees. We are not attorneys and we are not giving legal advice.
If it is your first time to interview Wellington short sale realtors, be aware that some realtors can be so effusive in their charm that they’ll make you forget it’s your role to take command of the interview – and not the other way around. To ensure that you get the answers you need – and hopefully find the ideal realtor to work with quickly as well – here are some questions that you may want to consider including in the interview. They’re guaranteed to help you make the right decision.
How much experience does the realtor have with short sales?
Short sales and sales of brand new homes are as different as apples and oranges, and don’t let any realtor tell you differently. Different rules are involved here and as such someone with significant experience with selling brand new homes or even fixer-uppers may still not be entirely useful in helping you complete a short sale for your property.
When interviewing Wellington short sale realtors about their experience, you should ask for a specific example or case in which the realtor was involved with. Listen closely and examine the actions that the realtor took in order to close the deal. If you were in the seller’s position, would you have been satisfied with the realtor’s work?
How does the realtor plan to advertise your property?
Time is of the essence here. After all, short sales are often – but not always – pursued as a way of preventing foreclosure. If this is true in your case then you need to make sure that the realtor you will be working would be able to do everything possible to sell your home.
More specifically, your realtor must be able to do things that you personally can’t do on your own. Consider Internet advertisements for instance. If your realtor has a high-ranking website to advertise your property in then that’s a huge plus point for him or her.
How does the realtor plan to keep you updated?
While it’s paramount that you understand the need to give your realtor space to work on marketing and selling your home, your realtor should also understand that you would be naturally anxious for updates. If the realtor cannot commit to a specific schedule for updating you about the latest changes regarding your home’s short sale then he or she is not the right realtor for you.
The best Wellington short sale realtors know what you are going through without a word being said and will do their utmost to assuage your fears while working efficiently to get the best possible price for your property.
Services offered by professional and highly competent Wellington short sale agents can make a huge difference with your chances for successfully short selling your home. Short sales may be quite the buzz word nowadays in the real estate market, but it’s remarkable how a lot of home sellers and buyers still don’t quite fully understand what this process is actually all about. As a result, unfortunate clueless homebuyers end up paying for a short sale home while misguided sellers find themselves signing away their homes for a depressingly low price.
You, however, have the chance of avoiding such a situation if and when you decide to work with an expert Wellington short sale agent.
Know the true value of your home.
The best Wellington short sale agents would be able to provide you with a comprehensive market report of your neighborhood, which then provides you with a clear picture of how much you are likely to sell your home for and what kind of competition you are facing.
Know the laws applicable in your area.
A short sale deal can easily fall through if you unwittingly violate a law that’s applicable to the short sale process. And because of unnecessary legal complications, what had initially seemed a promising deal is likely to result into nothing. After all, you’re not the only one interested in buying or selling a short sale home.
A good agent will let you know what exactly you need to do right from the start, thus ensuring a smooth sailing process for your short sale.
Get your lender to agree to a short sale.
A short sale can’t ever push through without your lender’s approval. After all, they’re the ones with a lot to lose with this type of deal. Convincing a bank to approve a short sale can, however, be extremely difficult if you don’t happen to be late with your payments and are in a fairly good financial standing.
Then again, homeowners don’t always opt for short sales just because they’re in the red. Many of them also opt for short sales simply because it makes practical financial sense to do so.
Ultimately, Wellington short sale agents can help you work on the following:
All these tasks are easier said than done. You can certainly try accomplishing all of them on your own, but at the end of the day you’ll realize for yourself that a short sale is just a lot quicker to achieve if you have the right agent at your side.
Palm Beach County Foreclosures are back in full swing again. The robo-signing disputes are pretty much over. All of 2011 we did not see very much foreclosure activity or many foreclosure lis pendens filings because 1. the banks were dealing with the robo-signing problems and 2. the big banks were waiting to see what they were going to end up negotiating with the administration.
Last month almost 1,200 homes went into foreclosure! That is an increase of 58.5% over the same time last year.
Sharon Block, the Court Clerk said she was not suprised at all. They were expecting this increase because of the delays from last year.
The state of Florida is loooking for ways to deal with the 368,000 backlog in foreclosure courts. We need to be mindful of what those changes will be because you want to protect your property rights. There is a bill that just passed the house and is now in the state Senate regarding a fast track for foreclosures.
Completed foreclosures are now also on the rise. In February there were 929 properties advertised for sale and aboutPalm Beach County Foreclosures are back in full swing. In February of 2012, almost 1,200 homes went into foreclosure, signifying an increase of 58.5 % over the same time last year. Completed foreclosures are now also on the rise with 68 % closing on schedule.. That is compared to about 49% from a year ago.
If you have been living in your house without making payments for a few years, that time may be coming to a quick end for you shortly. It may be time for you to start making your plans about where you are going to move once the bank forecloses on your property.
There may still be time for you to complete a Palm Beach County Short sale. Contact Nestor Gasset or Katerina Gasset at 561-753-0135 for a confidential short sale evaluation on the phone. You may even qualify for relocation cash to help you move from your lender.
Short Sales can fail when you are not the one in control. By that I mean involved in the negotiations on the successful short sale approval.
As Wellington short sale agents we have a very high rate of success in closing our short sale listings in Palm Beach County, Broward county, Miami/Dade county and St Lucie County.
The only time we don’t have success on a short sale listing ( other than the foreclosure not being stopped- which has not happened in a few years) is when the seller has already chosen an attorney to do the short sale negotiations for him before listing their property with us or hires an attorney other than one we know does a good job with negotiations after we list the property.
As Realtors® we have a code of ethics and standards of practice. In that it states that no Realtor® is to work in a field or area of real estate that they are not proficient in.
REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/10)
But what about attorneys and their assistants? Is there any duty that the BAR requires that attorneys don’t work in areas of real estate matters that they do not have competence in? Is there any requirements for those they hire to process and negotiate short sales to have short sale experience of some kind? No license is required?
The attorneys in these situations are not the ones doing the negotiations. They have hired clerical people to do this work in their offices. So while they are working “under the supervision” of a licensed attorney I am wondering how much supervision they are actually getting?
Case in point:
1. Seller lists their Palm Beach County short sale with us. They chose us because of a referral ( a successful short sale seller). Then after they list their property, they hire an attorney who is doing their short sale. This seller is most likely qualified for HAFA which means he would get a release of his deficiency. The attorney does not want us to be involved in the negotiations. The approval letter comes back from the bank. The attorney has a clerical helper processing and negotiating ( if you can call it that) the short sale. The approval letter states that the first lien holder is NOT going to release their deficiency rights. Nestor asks the clerical person why they don’t have a HAFA approval. There is just silence on the other end of the phone. The clerical person never put this file through HAFA. The sellers refused the short sale terms and conditions from their lender.
As real estate agents in Florida we can not advise these sellers about the incompetancy of the attorney’s office. We can not practice law so we just have to sit by and watch the sellers lose another buyer and maybe lose their home to foreclosure.
2. Seller lists their Palm Beach County short with us. They choose an attorney to do their short sale processing and negotiations. The attorney refused to allow us to see the HUD1 settlement statement that was going in with the short sale package. He said it is because Brokers always have items they want changed. Really? Of course brokers have a say on the HUD1, they are making sure that disbursements of funds are correct and that the real estate fees are listed correctly, etc. Well, the HUD1 did not have mortgage insurance on it. The attorney argued with us saying that the seller did not have any MI. We were not talking about the kind you get when you take out your loan but rather the kind that the note owneres get to protect their bad notes when the market started falling and they knew that the defaults were coming. Of course, he refused to add it. Guess what! The short sale approval letter came in exactly how we said, $5000 shy of the net because there was MI insurance!!! Go figure! The sellers were so disenchanted and vulnerable at that moment that instead of trying to negotiate these terms, their attorney told them to do a DIL.
3. Seller lists their short sale with us. They hire an attorney. The attorney has us working the short sale, showing the house, etc and the attorney was working the DIL at the same time. The attorney after we had invested money and time into this listing was going to get paid more money by doing a DIL than a short sale. We had to cancel the listing so that the sellers could do the DIL.
4. Short sale sellers list their property with us but they were already having their attorney do the short sale negotiations. The attorney gets the approval letter with a request for a promissory note. We thought that was sort of peculiar since the sellers were again, most likely qualified for HAFA. HAFA was never pursued by the clerical help in this attorney’s office.
We take a lot of pride in the fact that we have closed more short sales successfully from our listings over the years than most other agents with the same volume of listings since 2007. This goes against our success record on successfully closing short sales. It also leads to bad feelings between the sellers, the attorneys and us.
So at the end of the day, incompetence ruins relationships. Because of this, we will no longer be accepting short sale listings when the outcome is up to a clerical person in some attorney’s office somewhere who does not even know that you are supposed to try to get the sellers approved for HAFA or other incentivized programs the banks are participating in. We will no longer be accepting listings that are short sales if the sellers’ attorneys don’t know what a short sale prelim HUD1 is supposed to have on it.
Wellington Foreclosure Report For Zip Code 33414
There are only 82 foreclosure properties in the zip code of 33414 which is the main part of Wellington according to Realtytrac. Some of us call this part of Welligton- the Village or you may consider it Wellington Proper which may be more like what you would call the main part of a town.
During the real estate boom all the developers and builders wanted to be able to have a Wellington address. So they started to request to be annexed into Wellington. The Village of Wellington wanted to annex because that brings in more revenue to the town.
So much of the eastern communities along 441 and further east like Olympia and Buena Vida got annexed into Wellington.
But the interior or Wellington, the older parts of the town are what are like in your town might be your downtowns or your city propers. This also encompasses the southern and western Equestrian areas which were always Wellington. In the Wellington proper areas of Wellington you can walk to the store, the post office, the city center except of course out in the acreage and farm areas. If you live in the exterior part of Wellington, the newer annexations, you have to drive to get to any place because your communities are located along State Rd 7 or 441.
So in the zip code of 33414 there are 82 new foreclosure properties according to Realtytrac. That is one in every 262 housing units. This is considered to be a moderate amount of foreclosures. High would be one in 149 and low would be one in 455 units.
For the entire western to central palm beach county one in every 255 housing units received some kind of foreclosure filing in the month of January 2012.
Currently there are 82 bank owned properties in Wellington zip code 33414.
ONLY 13 of these bank owned properties are listed in the Regional MLS for sale.
Currently there are 263 properties in one stage of pre-foreclosure or another. This means that they are at risk of being filed a lis pendens on because they are late in making their mortgage payments or they have a lis pendens filing against their property.
Only 81 of these are listed as a Wellington short sale for sale in Wellington zip code 33414.
That is a lot of homeowners who are not doing anything about their delinquencies or they are trying to re-modify their loans or they are choosing to wait it out as long as they can.
It is projected that foreclosures will speed up this year now that the government and the banks came to an agreement about the penalties for robo-signing and other things.
Don’t wait until it is too late to do something about your foreclosure. There are options out there for you. Call us today for a private confidential phone interview to go over your options. A Wellington short sale may be your best option and if it is, choose Wellington Short Sale Agents to list your home and negotiate your short sale.
Authored by Katerina Gasset- Copyright© 2012