Tag: Orlando Short sales

Short Sale Tax Relief Law Extended!

Posted on by Jenny Zamora

As I explained in a post I wrote back in November “Will They Extend the Mortgage Forgiveness Debt Relief Act?” There were thousands of distressed homeowners that weren’t sure if they would receive “short sale tax relief ” or if they would be forced to pay income tax on phantom income when they sold their home via short sale. For most people that are in this situation, this would have been financially devastating.

When the Mortgage Forgiveness Act of 2007 was put in place because of the nationwide real estate collapse, for three years it guaranteed people that they could short sale their homes and move on with their lives without having to worry about having to pay income tax on the difference between the full payoff and the short pay off. Then after 2010, they kept on extending it for one more year.

For some reason, however, in 2014 congress took its own sweet time and nobody was sure if it would be extended yet again. Many distressed homeowners chose to just let their homes be foreclosed on in fear of the possible income tax implications. Other underwater homeowners rolled the dice and did a short sale anyway and prayed that the government would eventually do the right thing.

The people that took that chance and did a short sale anyway, lucked out big time because in December congress finally decided to extend law and on December 19 the president signed off on it making it official.

Short Sales In 2015

Of course, the question for the next year will be…Will They Extend it for 2016? Again the answer will be the same as it was last year. We’ll just have to wait and see. Unfortunately, not knowing if it will be extended again is not only bad for underwater homeowners that desperately need a short sale but for the Orlando real estate market in general.

 

 

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TOR 001: Welcome To The Top Orlando Realtors Podcast!

Posted on by Jenny Zamora

Top Orlando Realtors podcast Introductory episode

In this episode, you will learn

  •   About Orlando Realty Consultants
  •   About The Show
  •   How to Get Your Questions Answered On The Show

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Will They Extend the Mortgage Forgiveness Debt Relief Act?

Posted on by Jenny Zamora

There are tens of thousands of distressed homeowners wondering the same things right now. Will Congress continue to help out consumers who are behind on their mortgages by extending the Mortgage Forgiveness Debt Relief Act of 2007 for one more year?

The act was put in place in order to help homeowners with underwater mortgages by forgiving the taxes owed on the difference between the short sale payoff and the full amount of the loan. Under the current federal tax law, the amount forgiven by the lender gets reported as ordinary income for the homeowner.


The Mortgage Forgiveness Debt Relief Act of 2007 expired last Dec. 31 and has yet to be renewed for principal reductions during 2014. These principal reductions can apply to loan modifications that were done by lenders, foreclosures, and short sales. Many believe that Congress will extend the law however if they don’t, hundreds of thousands of distressed homeowners will be hit with tax burdens that they may not be able to handle.

I’ve had several dozen Orlando homeowners that would’ve opted to do a short sale on their home but have filed for bankruptcy instead rather than hoping for Congress to renew the law. I believe that it’s for reason that we’ve seen a significant drop in Orlando’s short sales so far in 2014. The fact is that I can’t recommend for homeowners take a chance on a tax law that may or may not get renewed.

Let’s get back to the main question: Will the mortgage forgiveness act be extended?

The truth is that we just won’t know until it happens… or doesn’t happen. And for underwater homeowners that have received or plan on receiving a reduction on their principal balance, it’s going to be a stressful time until it all plays out.

Short Sale May Still Be The Best Option

Regardless of whether Congress decides to extend the law or not, a short sale may still be the way to go for some distressed homeowners. If you compare a short sale to a foreclosure, you’re still better off doing a short sale, and here’s the reason why. If a house goes to foreclosure, it will still sell for way below the full payoff amount and you would still be facing possible tax burdens. The difference is that by doing a short sale you would avoid having a foreclosure on your record and you will also have a chance at getting relocation assistance from the lender.

 

 

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How To Choose The Right Realtor- VIDEO

Posted on by Jenny Zamora

When searching for the right Orlando real estate agent to meet your needs, keep these important things in mind.

Real estate agents in the state of Florida go through endless hours of special training to ensure they know all the real estate laws in their state. Going it alone without the representation of an experienced realtor is dangerous and can cause you to slip up and lose a deal or even worse, end up in legal hot water.

Traditional real estate marketing through the MLS and other network channels is effective so make sure that your Orlando Realtor is active every day maximizing exposure to their properties.

The Realtor that you choose should also have a strong online presence through their own websites and social media profiles.

How To Choose The Right Realtor

The following are three vital tips to help you find the right real estate agent for you.

 

1- The right Realtor may have information on financing that may allow you to progress through the process more effectively and avoid the challenges you may normally encounter.

 2- See if they have online capabilities like virtual tours and walk-throughs which will do wonders when showcasing the property and making it available to the largest amount of potential buyers possible.

3- Always ask if they have online testimonials are positive reviews they could direct you. Having the right real estate agent in your corner can save you time and money so make your choice wisely.

 


 

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Orlando Short Sale Buying Tips

Posted on by Jenny Zamora

 

Buying a short sale home can potentially land you a deal of a lifetime. It can be a long drawn out process but if you can mange to hang in there until the end, chances are that you’ll be glad you did.

 

Our brokerage specializes in doing short sales for distressed homeowners and I can’t tell you how many times we’ve lost buyers potential buyers because they get tired of waiting on the lenders.

 

The flip side to that is we’ve also had many clients that were willing to hang in there and see it through to the end. By doing so they ended up with a heck of a deal.

 

If you’re one of those people willing to stay the course throughout a short sale process, then here are some tips that might help see you through.

 

1- Enlist the help of an Orlando short sale specialist.

An experienced short sale realtor can quickly provide you a list of all the properties that are listed as short sales in the area that you’re interested in. They can also advise you on negotiating an offer. “Short sale specialists” can easily be found on Google.

Interview at least three realtors and ask them to provide you with references from past clients.

 

2-Do A Title Search

It would be wise to do a title search to find out how many liens are on the property. In a short sale, each lien holder must be dealt with and satisfied before you can close on a property.

Your realtor should be able to help you with this because if they close a lot of deals with the same title company then they should be willing to provide a quick title search either free of charge or at least at a discounted rate. Title searches usually cost between $200-$300.

 

3-Be Patient

There are many moving parts in a short sale but there are two main things that need to happen. The sellers must first agree to your offer, then the lender must also agree to the offer.

There’s a whole lot of paperwork going back-and-forth between the sellers and the lender which can sometimes take several months to process depending on who the lender is. If there are second and third lien holders, it can take even more time.

 

4-Have Your Financing Ready To Go

It’s always best to offer cash in these transactions. This will capture the lenders attention and your offer may get accepted even over a higher offer that depends on financing. However for most people, paying cash for a property is not an option. The next best thing is to be pre-approved by a lender to make sure you can close quickly.

 

 

 

 

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