For Sellers

Foreclosure Prevention Tactics

If you are in a position that you may loose your home to foreclosure, it is in your best interest to take action immediately.   The sooner you act the better; it makes the problem worse to ’stick your head in the sand’ and ignore it.  Below are a few options that you might consider:

1. Refinance
   1. HOPE for Homeowners (H4H) program available through the US Department of HUD
2. Loan Workout – Consult an attorney throughout this process
   1. Talk with your lender about loan modification options
      1. Forbearance – making a partial or skipped payment with a plan to catch up
      2. Reinstatement – catching up on your late payments
      3. Repayment plan – make payments to catch
      4. Loan Modification – lender agrees to modify your loan to keep you from going into foreclosure
      5. Deed in Lieu of Foreclosure – signing property over to bank in exchange for debt forgiveness – hurts your credit but not as much as a foreclosure
3. Sell property for less than is owed and bring the shortage to closing
4. Short Sale
   1. Sell your home for less the you need to payoff all of the liens and cost of selling.
   2. The lienholder(s) must agree to accept less than is owed .
   3. Seller may be required to ay back the shortage over time or bring some funds to closing.
   4. Must qualify for a short sale
      1. Hardship or “changed financial circumstances”
      2. Property worth less than owed
      3. More paperwork required than when getting the loan
   5. Although it affects the seller’s credit it has less impact than having a foreclosure on your record
5. Foreclosure – Contact an attorney

If your are in a hardship situation it is important that you contact your lender’s “loss mitigation department” IMMEDIATELY.  I advise seeking legal council from a reputable attorney.  DO NOT wait!

Be cautious about those who offer to take care of your problem (Rescue Scams).  Many people have lost even more money by trusting these people/companies and still lost their home.  Some of the warning signs that it is a rescue scam incude:

• Ask you to sign a quitclaim deed for the property
  • You are still liable for the mortgage payments – don’t depend on someone else to make them for you
  • Youmay be offered to lease the property from the scammer

Consult a real estate agent who has earn a Short Sale & Foreclosure Resource Certification to help guide you through the maze of selling your home on a short sale and to determine if that is the route that is best for you.

Guidance on New $6,500 Tax Credit for Repeat Home Buyers

If you have questions about the the $6,500 tax credit for repeat home buyers, the IRS has published guidance to help consumers better understand the requirements.  This Washington Post article gives an explanation of the credit and provides a link to the IRS for more information.  A little research led me to this IRS link [...]

January 1, 2010 HUD-1 and GFE Changes

Effective January 1, 2010 a new Good Faith Estimate (GFE) and HUD-1 (closing statement) are required.  These updated forms are designed to better inform borrowers and to restrict fee increases that borrowers have experienced in the past.  It should help to eliminate surprises at the closing table in relation to fees the borrower pays or [...]

Mortgage Forgiveness Tax Relief Still in Effect

A law enacted in 2008 relieves homeowners from paying taxes on mortgage debt that as been relieved through mortgage workouts, short sales, etc.    This is in effect through 2012 and there is a specific for used to report this to the IRS.  Read the IRS bulletin regarding tax relief.

Considering Letting Your Property Go Into Foreclosure?

Are you in a position that you may be headed into foreclosure?  There are other options that you need to investigate.  I just answered a question from someone wanting to let their mobile home go into foreclosure.  Not knowing all of the information I gave advice that I would give to anyone in that situation.  Read my answer for further information.

Twin Falls FSA Newsletter on “Selling Land”

I just received a newsletter from Twin Falls Farm Service Agency (FSA).  It included an article about some issues to be aware when selling farmland that is in a Conservation Program.   The article said,  “If you are planning to sell farmland, there may be some program consequences you should be aware of.  Fore example, if you’re planning to sell land that’s enrolled in the Conservation Reserve Program, the buyer must agree to continue the enrollment.  If the buyer doesn’t want to continue the CRP contract, you might have to refund all the payments you’ve received to date.

Reviewing program implications with your local Farm Service Agency staff before completing a sale of farmland is always a prudent precaution.”

Home Buyer Tax Credit Not Just for First Time Buyers

The Extended Home Buyer Tax Credit: Find the basics for homebuyers, and home owners from the National Association of REALTORS®. They provide some valuable information.  NAR further info

Homebuyer tax credit extended and expanded!!!

“The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.

The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.”  Read entire article.

The difference between a Client and a Customer

Idaho real estate law requires that at the first substantial discussion with a potential buyer or seller, that you be given what we call the “Blue Brochure”.   The Blue Brochure explains the agent’s responsibilities to you and how they differ if you are a Client or a Customer.  My job is to educate you about the difference and give you an opportunity to decide what our relationship will be.   Watch for further posts explaining the difference between a Client or a Customer or click here to read the Blue Brochure for yourself.

How do Real Estate Agents Find Buyers and Sellers

Most clients and customers that real estate agents work with don’t just walk in the door or call from an ad in a real estate publication.  The real estate business is driven by repeat business and referrals.  Buyers or sellers who have been happy with the service I provide are a great source of advertising as they tell their friends and family what they liked about working with me.   Don’t hesitate to spread the word about the benefits of working with your favorite realtor.

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