It's Almost Midnight For Sunnyvale Short Sale Federal Tax Debt Relief

If you can not pay your mortgage you might want to do something about it sooner rather than later. Here's why:

1. The Mortgage Debt Relief Act of 2007 is set to expire at the end of 2012

2. This act says that if you sell your primary residence as a short sale or it is foreclosed then no federal tax is owned on the debt foregiveness, the difference between what you owe and what the bank was paid back after the short sale or foreclosure.

3. In 2013, unless the act is extended there will be taxes owned on homes that are foreclosed or sold as short sales.

4. Do you really think the congress is going to pass anything like an extension of this tax relief during the election season?

So, if you can not pay your mortgage DO SOMETHING NOW. Don't be stuck with losing your home and then still owing taxes on it.

If you have any questions about short sales in San Mateo or Santa Clara Counties, please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

Sunnyvale Short Sale: HAFA Limbo

Today I got a call from the listing agent on a Sunnyvale Short Sale where my buyer is waiting patiently. The agent said that the file went into HAFA limbo. A new wrinkle in short sale submission is HAFA elegibility testing.  When a short sale is submitted many banks are automatically sending the file for HAFA review, to see if the owner qualifies. The problem is that too often either the buyer does not qualify and you have lost 6-8 weeks waiting for a reply.  In this case the file just got lost in the HAFA department but the point here is that the banks are doing this automatically. The seller has to specifically ask to be taken out of the program when you submit the short sale package or it will go into auto review.  Since up to this point less than 10,000 HAFA short sales have been approved nation wide it is a real long shot. Since not only does the seller have to qualify, but the investors on the loan and all mortgage insurance holders have to approve the pay off.  It may be that the revamped HAFA program may have better success, but until I see those numbers I will not believe it.  My short sale sellers have opted not to roll the dice, but instead try to move on with their lives sooner rather than later.  So now I have another question to ask the lisiting agent before submitting a short sale offer, "Is the Seller applying for HAFA?"  If so, it is a good bet that there will be an extra 2 months added on to the short sale unless they get approved for the buyer, the price, and the investor's ok ahead of time. If not I will remind the listing agent to opt out.

If you have any questions about short sales please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E  01191194

650-619-9285

Federal Government Disclaimer (MARS):
1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Can I Buy a Home in Sunnyvale Ca at an Auction?

Buying a Foreclosure

Question: The house next door to me has a notice of trustee sale on the door. Can I go to the auction and buy it?

Answer: That depends. If the owners of the house pay off what they owe before the trustee sale or if they declare bankruptcy there will not be a sale. However if they do not do anything then the home will go to public auction. In order to purchase at auction you would have to pay all cash, you do not get contingencies, and the title is not insured.  The first loan has to be paid off and if the house is worth less than the loan balance you would have to pay more for the home than it is worth.  If the home is being foreclosed by someone who has a junior lien, that is a second loan, or a lien against the home then the first lien holder needs to be paid off before any of the junior lien holders can have the property.  

It is generally a very risky proposition to purchase a home at public auction since there is no way to guarantee that you will have clear title. Even if you pay off the first lien holder there may be other liens against the property that you would become responsible for. The best thing to do is to wait until the bank repossesses a home, and then lists it with a realtor or sells it an auction with an auction company that allows a buyer to use a lender. There are not many auctions like this in Santa Clara County, but they do happen occasionally. It is more common for a foreclosed home to be listed on the MLS after the bank takes it back.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales