Sherrie Helps Homeowners!---- Avoid Foreclosure

Tax Questions About Short Sale vs. Foreclosure Answered

Fri, 04 Mar 2011 10:47:38 GMT

I have had many clients ask me how they will be affect by a short sale or a foreclosure on their taxes. This article answeres a lot of questions and gives a link to the IRS to answer more specific questions.

Sherrie Raef; CDPE, Realtor

RE/MAX Professional Realty LLC

Lebanon, MO 65536

417-718-1239 cell

417-588-8180 office

Worse tax bite: short sale or foreclosure?

REThink Real Estate

By Inman News Feed

Add Comment | Comments: 0 | Posted Mar. 3, 2011

REThink Real Estate

Tara-Nicholle Nelson
Inman News™

Q: Is there a difference on how you are 1099'd on a short sale vs. foreclosure for California residents? Is a foreclosure more "forgiving"? --Barb

A: Before we delve into a serious subject, I want to share something funny (and tangentially relevant) that happened to me the other day. "My mother sent me a text message that read: If I send you an address, can you tell me whether it is a shortcake?"

I'm pretty sure she meant short sale, and her texting software's auto-correct function actually transformed it to the much more pleasant confectionery delight.

Anyhow, let's start from a place of clarity. Internal Revenue Service Form 1099 is the form on which miscellaneous forms of taxable income are reported to taxpayers, who are then required to report this income on their tax returns (and pay taxes on it as required by their financials and the tax code).

In every state, every short sale or foreclosure can give rise to the bank issuing the borrower/former homeowner a form 1099 to report what is called Cancellation of Debt Income (CODI).

The theory is that you were not required to report the money you borrowed as income at the time you took the mortgage, because it was not income -- it was a loan. When any portion of that debt is forgiven, whether through a short sale, a loan modification or a foreclosure, those funds convert from a loan to income, and must be reported to the IRS.

Any lender that wipes out debt in the context of a loan restructuring or a foreclosure has the right to issue the former borrower a 1099 form on the deficiency amount: the difference between what the lender recoups on the property through auction sale, short sale or a reduced loan balance, and what the borrower owed on the property. (The lender may not do it, but has the right to -- and most lenders do.)

As a result, in foreclosures involving equity lines or loans or refinance loans that resulted in cash out (i.e., were not used to purchase the home or to refinance a purchase loan), that bank may not issue a 1099 because that line or loan has not been forgiven -- the bank retains the right to pursue the borrowers for those funds in California.

Early on in this housing crisis, it was widely believed that a short sale would generate income tax while a foreclosure would not. This was largely misinformation, misinterpretation and misunderstanding of the relevant tax rules, largely due to the fact that we had simply seen very few cases of short sales or foreclosures until this wave of foreclosures came four years ago.

I think the (incorrect) belief was that a short sale was elective while a foreclosure was not. In fact, in 2006 I actually represented a would-be buyer on a property where the sellers decided to let the home go to foreclosure vs. closing on our short sale, out of the false belief that they would incur a great deal of income taxes on a short sale and none on a foreclosure.

As we now know, several years into this housing crisis, both foreclosures and short sales involve 1099s and cancellation of debt income. However, under the Mortgage Debt Forgiveness Relief Act of 2007, the IRS is not charging income tax on most mortgage debt forgiven through short sale or foreclosure -- especially on a borrower's primary residence, and with a few other conditions -- so long as that foreclosure, short sale or loan mod occurs before the end of the 2012 calendar year.

While there was a brief period of time during which California's state tax law did not align with this temporary federal tax exemption, California's law now mirrors the federal law.

A couple of points of note: Lenders are taking a long time to foreclose now -- 16 months after no payments, on average nationwide, and much longer in some areas. Many homeowners considering a strategic default vs. a short sale should at least make an effort at a short sale, especially given that there's no guarantee that a foreclosure will occur before the end of 2012 even if they stop making payments now.

Unless the Mortgage Debt Forgiveness Relief Act is extended, former homeowners who lose their homes after 2012 could be subject to income taxation at their regular tax bracket on the deficiency amount -- sometimes hundreds of thousands of dollars.

There are a number of other exceptions to this taxation that apply at all times, though, including an insolvency exemption for those with a negative net worth, that may apply to many upside-down homeowners -- more detail is available at the IRS website for the Mortgage Debt Forgiveness Relief Act.

To be fair, I must mention that many experienced short-sale listing agents advise borrowers to stop making payments before requesting a short sale, too, as a number of major lenders and loan servicers do not seriously consider any sort of loan workout requests from borrowers who are current on their loans.

Before you make a decision about whether to attempt a short sale or let your home go to foreclosure, consult with a tax professional and get fully briefed on how the relevant tax laws will affect you.

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Successful Short Sales in Lebanon, MO

Thu, 10 Jun 2010 10:02:12 GMT

SUCCESSFUL SHORT SALES IN LEBANON, MO

Short Sales in Lebanon and Laclede county, Missouri are a relativly new thing. Currently there are over 430 residential listings in the Lebanon, MO mls, of those only 7 are short sale listings. I, Sherrie Raef have 3 of those, more than any one realtor on the board. I have successfully closed two short sales in the last six months, both with the deficiency clause removed. One of those was a Bank of America mortgage and the other a US Bank mortgage with a second.

I am currenly working on an offer on one of the three listed short sales and feel confident I could bring an offer on one of the others this next week. Typically short sales are in better condition than a forclosure and therfore bring more, allowing more to offset the debt owed. A short sale allows a seller to stay in the home while it is on the market - even if payments are not being made.

Now, with the HAFA program - the homeowner can even receive money at closing to help with the expenses of relocating. It is important that every home owner who is facing the possibility of foreclosure looks into the options available to them. Foreclosure is a difficult thing - there are options that are better for you emotionally and financially. Make arrangements to look into a successful short sale in the Laclede county, MO area today!

Sherrie Raef; CDPE, Realtor

RE/MAX Professional Realty LLC

Lebanon, MO 65536

417-718-1239 cell

417-588-8180 office

Mortgage Crisis Easier

Solving Your Mortgage Crisis Just Got Easier

If you are having trouble making your mortgage payments, the strain of figuring out what to do can be overwhelming.

Why do it alone when you can have a dedicated, extensively trained professional on your side at no cost to you?

Both lenders and the federal government are putting new systems in place to help you avoid foreclosure. For access to free, detailed information explaining these programs, simply download the report below.

On this website, you can find information regarding all of your options. When you call me to find out what you can do to take advantage of these options, I will show you how having straightforward solutions to your mortgage challenge can help you to breathe a little easier.

For more specific information and to see if you qualify, please, call me today! The sooner you call the sooner you can breathe a sigh of relief!

Options and Solutions

Thank you for visiting this site and taking the first step toward finding answers. I appreciate what it has taken for you to come here, and commend your efforts to get the facts about your situation. The current real estate environment can be frustrating, with misinformation and conflicting plans for how to proceed.

As a real estate agent, what I often see in troubled homeowners is a belief that they are alone with their challenges. Regrettably, over 70% of homeowners in foreclosure proceed without ANY visible assistance. This is not acceptable for the communities I serve.

That's why I've developed this site: to ensure you get the valuable resources that can reduce your financial strain and change your life for the better. As a CDPE I know the options for homeowners in foreclosure or delinquent on their mortgages, and I can send you a report detailing this information, prepared just for you.

Simply enter your information below and click "Send." I hope that you will review this information carefully, so that your next steps are the right steps toward a real solution.

Let me help you evaluate your options and get back on track to a solid, stable future.

Understanding HAFA

New Help Has Arrived!

The rising number of foreclosures in this country is simply too big to ignore. That is why a government-backed program has been released that aims at streamlining foreclosure avoidance options.

Short sales and deeds-in-lieu are dignified solutions to foreclosure, and now the government is making them easier, quicker and more accessible through the Home Affordable Foreclosure Alternatives Program, or HAFA.

With one in six homeowners struggling to make mortgage payments, you are not alone, and there are options available. With the free report provided here, find out if you qualify for the HAFA Program. Simply fill out your information below to get started on your new chapter of financial stability.

Please read this report to learn the facts, and contact me to begin your journey to a solid, stable tomorrow.

Short Sale & Deed-In-Lieu

Contrary to what you may have heard, lenders actually want to avoid foreclosure wherever possible. That’s why they’re accepting more short sale and deed-in-lieu transactions everyday in an effort to eliminate unnecessary foreclosures. This is great news for homeowners facing financial distress.

To help you understand more about these two options, I’ve prepared a free report just for you, called ‘Short Sale & Deed-in-Lieu: Dignified Solutions.’ To receive your free report, please provide your information in the fields below.

I hope you’ll review these options carefully and pass this information along to those who may need it. I commend your efforts to finding a solution to the difficult financial situation that you or someone you know is currently facing. Providing the best advice and information in your time of need is my priority.

Let me help you evaluate your options and get you back on track to a secure financial future.

Your First Steps To Avoid Foreclosure

Your First Steps

In today’s market, 1 in 7 homeowners is having trouble paying the mortgage. More than 70% of these homeowners proceed without seeking assistance or getting the facts. Many do not even realize that foreclosure is a process, and that there is time to make decisions that may result in a better outcome.

You are not alone. Millions of other homeowners nationwide are in the same circumstances. To assist you, I’ve prepared a free report outlining the first steps a homeowner should take when facing a foreclosure.

Fill out your information below for this free report. Don’t hesitate. Get back on track today!

Cash for Short Sales

Short Sales are More Valuable Than Ever!

Avoiding foreclosure is always a smart move, but now there are incentives that make it an even better one.

Short sales and deeds-in-lieu are dignified solutions to foreclosure, and now the government is making them easier and quicker through the Home Affordable Foreclosure Alternatives Program, or HAFA, which also gives the homeowner $3,000 for participating.

With the free report provided here, you can learn all the benefits of completing a HAFA short sale. Simply fill out your information below for details on the program and how you would benefit.

Please read this report to learn the facts, and contact me to start exploring solutions.

Hidden Costs of Bankruptcy

Considering filing for bankruptcy? There may be alternatives you've never considered …

If you are having trouble paying your mortgage and are possibly considering bankruptcy, there may be better solutions for your particular circumstances. I've created the free report available on this page, "The Hidden Costs of Bankruptcy," to provide more information.

Alternatives to foreclosure, such as conducting a short sale and moving into a rental residence with less expensive payments, may offer the breathing room you need to reorganize your finances.

To get your free report, fill out the form below and click send. However, if your situation is urgent and you need immediate assistance, please don't hesitate to contact me.

I'm here to assist you.

The Truth About Mortgage Modifications

The decisions you make as a homeowner today hold a profound impact on your financial future. However, it is important to safeguard yourself from misinformation and fraud. Get the facts regarding your situation and always have a contingency plan.

For those who qualify, a mortgage modification is the ideal remedy to their financial distress. I’ve prepared a FREE report on the truth about mortgage modifications to guide you through this important process. Simply provide your information below to get this valuable information, and feel free to pass it along to anyone who may need it. One homeowner lost to foreclosure is one too many!

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Together, we can formulate a plan to get back on track.

If you have any unanswered questions, or your circumstances are urgent, please call me today.

Sherrie Raef
(417) 588-8180

Foreclosure Vs. Short Sale

As a Certified Distressed Property Expert, I have devoted my career to helping homeowners who face difficult situations, taking them from uncertainty to resolution. Lately I've found a lot of conflicting information going around, especially concerning short sales, which you should know about.

A short sale occurs when a lender accepts the selling price of a home, even if it is less than the full amount owed on the mortgage. For particular homeowners, this can be the best option to foreclosure. Yet, I still hear people suggest that short sales are basically the same as foreclosure.

This is absolutely wrong!

You need to have the CORRECT information. That’s why I'm glad you're here. To help, I’ve prepared a free report—just for you—that compares the realities of foreclosures and short sales side-by-side. Simply provide your information below, and I'll send you this report.

If you have any additional concerns about this issue, or your circumstances are urgent, please feel free to give me a call. I can help you evaluate your options and get you back on track to a secure financial future.

Sherrie Raef (417) 588-8180

7 Short Sale Myths

There are millions of homeowners just like you who are looking for answers and don’t know what to do. You’re not alone and you’re in the right place.

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Despite my best efforts, there’s still an overwhelming amount of misinformation about the options available, especially short sales.

To give you a better idea of the short sale option, and to set straight some of the myths you may have heard, I’ve prepared a free report just for you - please fill out the information below to receive your free report. This report will clarify the following myths:

The Bank Would Rather Foreclose Than Bother With A Short Sale
You Must Be Behind On Your Mortgage To Negotiate A Short Sale
There Is Not Enough Time To Negotiate A Short Sale Before My Foreclosure
Listing My Home As A Short Sale Is An Embarrassment
Short Sales Are Impossible And Never Get Approved
Banks Are Waiting On A Bailout And Not Accepting Short Sales
Buyers Are Not Interested In Short Sale Properties

These ideas are potentially harmful to homeowners seeking real solutions. I hope you’ll review this information for yourself or share it with a homeowner in need.

In these times, we all need to know the truth to know how to get back on track.

If you have any additional concerns about this issue, or your circumstances are urgent, please give me a call.

Sherrie Raef
(417) 588-8180

Make Financial Stability Your Resolution

Foreclosure Stress Never Goes on Holiday

If a foreclosure is threatening your happy holiday, you should know you're not alone. Millions of Americans are in the same situation, and it is my goal to help ease the stress that comes with the threat of foreclosure for as many as I can reach.

As a CDPE-designated agent, I help struggling homeowners navigate the various options they have to avoid foreclosure. One possible option is a mortgage modification, which makes monthly payments more affordable.

For more information regarding this and other solutions, please download the free report located on this site.

If you need immediate assistance, please feel free to contact me throughout the holiday. I'm here to help. Make financial stability your resolution for the New Year!

Feeling Financially Squeezed

Feeling Financially Squeezed?

Escape the Grip of Forecloure

If you are struggling with the emotional stranglehold of foreclosure, I'm here to help. With my assistance, we can start the process of putting you back on the path to stability.

As a CDPE, I have extensive training to serve the needs of homeowners in circumstances where they feel they have no options. The reality is that you have many.

Because millions of Americans are struggling with unaffordable mortgage payments, lenders are more than ever encouraged to work with homeowners to find a solution that benefits all parties.

To find out more about foreclosure alternatives that are available to you, click and download the free report I've created on this website.

Call me today. The sooner we get started the more time we'll have to devise a strategy to help you breathe a little easier and restore hope for the future.

Missing Mortgage Payments? It's Never Too Late!

Missing Mortgage Payments?

It's Not Too Late!

According to Lender Processing Services (LPS), over 6.32 million homeowner missed their mortgage payments in April 2011. Another four million have missed more than three months of payments and are now considered seriously delinquent. If you or someone you care about is having difficulty making mortgage payments, you should know it's not too late to get help.

I created this website so homeowners could gather as much information as possible about a homeowner's options and what steps should be taken next. The free reports available on this site are phenomenal resources for you to learn more about how I can help overwhelmed homeowners overcome this temporary challenge in life.

Government Program Surveys

Are You Eligible?

The government programs currently available to homeowners can be valuable resources, but only if you know which ones are right for your situation.

That’s why I’ve created this free resource that lets you find out which programs you’re eligible for. Read the descriptions for each program to see which one fits your situation, then fill out the corresponding survey to see if you are eligible.

Find out now if you are eligible!

The good news is that programs exist for a variety of situations, and even more options are available beyond those programs. As a CDPE-designated agent, I can provide all of your possibilities and help you get moving toward a solution.

Strategic Defaults are NOT Strategic

Walking Away Is NOT The Answer

You may have heard that a “strategic default” can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. While this idea is widespread, the truth is that default is never an easy road to choose, and rarely ever strategic.

Unfortunately, the ramifications of a “strategic default” are rarely explained, leaving many homeowners stranded on an island of misinformation. To assist you, I’ve prepared a free report outlining the myths and misrepresentations of strategic defaults.

Fill out your information below for this free report. Don’t hesitate. Get the facts today!

A Dignified Solution

You Deserve a Dignified Solution

The economy today has been especially hard on homeowners. I meet people every day who thought they made a responsible decision on their mortgage loan, only to be hit with the unexpected.

The first and best move to make in this position is to educate yourself on what your options are based on your financial situation. Avoiding foreclosure is always something worth pursuing if you can, and there really are dignified alternatives available.

To get my free report on all the options and benefits of avoiding foreclosure, fill out the form below and click "Send". If you need immediate assistance, please contact me right away.

I'm here to help.

Freezes in Foreclosure

Think a Foreclosure Moratorium Will Save Your Home?

Think Again.

You may have heard news that politicians are requesting a federal moratorium on foreclosures and wonder what this means to you, especially if you are behind on mortgage payments. The reality is that a foreclosure freeze is not the answer to your problem. However, there are steps you can take to avoid foreclosure.

On the site below I've listed 5 steps to Avoid Foreclosure, which starts out with the proactive approach in avoiding foreclosure—taking action!

I have created this site to provide a source of empowerment and education. From short sales to loan modifications, I can provide information to provide a genuine sense of hope.

For a free report on the Five Steps to Avoid Foreclosure, fill out the form below and click "Send." Remember, a moratorium won't save your home—only you can! I'm here to help.

Short Sales vs Foreclosures

Short Sale vs. Foreclosure

Making the Right Choice for a Stable Future

The US housing crisis has claimed millions of victims. Unfortunately, many homeowners are losing their homes to the bank because either they think that a short sale will have the same financial effect as a foreclosure or they don't know their options.

The good news is that homeowners don't have to navigate this process on their own. I am available for those who need my expertise to get back on the path to stability.

If you, or someone you know has questions about this information, or would like to get started creating a plan, call me today.

The more proactive we are, the better the chance of finding financial freedom and stability.

Change the Course!

You Can Change the Course!

If you feel like shifting economic winds have not been in your favor lately, you are in good company. More than 6 million homeowners nationwide are in some stage of foreclosure.

If this is the case with you or someone you care about, you are all too aware of the stress and uncertainty that accompanies notices of default, unwanted phone calls and offers of help that turn out to be no help at all.

The fact is, the last thing your bank wants is to foreclose on your home. Banks are willing to negotiate, and you need someone on your side who is adept at negotiating with banks.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am tapped into the best solutions for helping financially distressed homeowners to make a fresh start. If you'd like to learn more, I invite you to access my free report: "Change the Course! And Navigate Away from an Unmanageable Mortgage."

Contact me today and let's get started!

Credit Score Issues

Don't Let Your Credit Score Drop Unnecessarily

Avoiding foreclosure now could make or break your attempts to get a loan in the near future and determine whether you can get affordable interest rates.

That's why I've made this site available for anyone in our community struggling with mortgage payments. Foreclosure alternatives like short sales and deeds-in-lieu allow homeowners to avoid many of the damaging effects of foreclosure. In addition, short sales may have less of an impact on credit scores than foreclosure.

To get all the information on how these options affect your credit score, fill out the form below and click "Send". If you need immediate assistance, contact me right away.

I'm here to assist you.

Tipping the Scales Toward Foreclosure?

Fear of foreclosure is a national epidemic.

Millions of homeowners fell behind on their mortgage payments last year, and then proceeded to fall further behind every month.

These are tough times and there are no easy answers.

The fact is, major lenders, the federal government, and local agencies across the country have stepped up their efforts to stem the tide of foreclosures. More help is available than ever before.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, I am knowledgeable and adept at navigating among the full range of solutions for helping financially distressed homeowners to make a fresh start.

Looking to learn more? Check out my free report: "Tipping the Scales Toward Foreclosure? Resolve to Shed the Weight of an Unmanageable Mortgage in 2012."

And if you, or someone you care about is looking to tip the scales back into financial solvency, contact me today for a confidential consultation!

Don't Walk Away From Your Mortgage in Lebanon, Missouri

Stop Don't Walk Away From Your Mortgage

At a Crossroads?

Walking away or "strategically defaulting" on your mortgage is not the answer. You will find that there is nothing strategic about foreclosure, especially when there are solutions to avoid it.

You should know that you have options, and that you are not alone. More than 25% of American homeowners now owe more than what their homes are worth, and millions more are having a hard time paying their mortgages.

I've developed a free, detailed report on foreclosure alternatives you can download below. Download it today and give yourself a green light for a solid financial future.

The sooner you take this step, the more time you'll have to act and move toward a more promising tomorrow.

Avoiding Mortgage Modification Fraud

I Am An Agent Against Mortgage Fraud!

The last thing struggling homeowners need is to be victimized by fraud. Sadly, some people are preying on those who need help the most. Today, the real estate industry is the newest, biggest target for predatory schemes. In fact, the U.S. Attorney General, Eric Holder, stated that mortgage fraud cases are 400 percent higher than they were five years ago.

With nearly 1 in 6 homeowners unable to pay their mortgages, understand that you are not alone. Knowing your legitimate foreclosure-avoidance options is the best way to fight this terrible trend.

The report on this site will tell you how to avoid mortgage fraud schemes, as well as what solutions are available to you. Enter your information below and get the facts now!

Sherrie Helps Homeowners!---- Avoid Foreclosure

Tax Questions About Short Sale vs. Foreclosure Answered

Worse tax bite: short sale or foreclosure?

Read more: http://www.philadelphiaweekly.com/real-estate/worse_tax_bite_short_sale_or_foreclosure-117336793.html?page=1&comments=1&showAll=#ixzz1Fe9da2tz

Successful Short Sales in Lebanon, MO

Mortgage Crisis Easier

Solving Your Mortgage Crisis Just Got Easier

Options and Solutions

Options and Solutions

Understanding HAFA

Understanding HAFA

Short Sale & Deed-In-Lieu

Short Sale & Deed-In-Lieu

Your First Steps To Avoid Foreclosure

Your First Steps

Cash for Short Sales

Cash for Short Sales

Hidden Costs of Bankruptcy

Considering filing for bankruptcy? There may be alternatives you've never considered …

The Truth About Mortgage Modifications

The Truth About Mortgage Modifications

Foreclosure Vs. Short Sale

Foreclosure Vs. Short Sale

7 Short Sale Myths

7 Short Sale Myths

Make Financial Stability Your Resolution

Foreclosure Stress Never Goes on Holiday

Feeling Financially Squeezed

Feeling Financially Squeezed?

Escape the Grip of Forecloure

Missing Mortgage Payments? It's Never Too Late!

Missing Mortgage Payments?

It's Not Too Late!

Government Program Surveys

Government Program Surveys

Strategic Defaults are NOT Strategic

Walking Away Is NOT The Answer

A Dignified Solution

You Deserve a Dignified Solution

Freezes in Foreclosure

Think a Foreclosure Moratorium Will Save Your Home?

Think Again.

Short Sales vs Foreclosures

Short Sale vs. Foreclosure

Making the Right Choice for a Stable Future

Change the Course!

You Can Change the Course!

Credit Score Issues

Don't Let Your Credit Score Drop Unnecessarily

Tipping the Scales Toward Foreclosure?

Fear of foreclosure is a national epidemic.

Don't Walk Away From Your Mortgage in Lebanon, Missouri

Stop Don't Walk Away From Your Mortgage

At a Crossroads?

Avoiding Mortgage Modification Fraud

Avoiding Mortgage Modification Fraud