Leave a comment » Foreclosure Resources for Orlando Home Owners
Listed below are resources that will be excellent places to research if you are having financial problems that might result in foreclosure. It will be to your advantage to be well informed if you are facing financial challenges. You might want to start your research with The National Association of REALTORS® l publication, "How to Avoid Foreclosure and Keep Your House". Another option is to call 888-995-HOPE. Talking to a representative on how to avoid foreclosure will be helpful. Available in English and Spanish, 24/7. Or visit their website for more information. Additional Foreclosure Resources:
Credit-reporting agencies:
Once a year go to www.AnnualCreditReport.com to ask for a free copy of your credit You can also call them at 877.322.8228. Another site is www.FTC.gov.
For information on great real estate buys in Orlando and nearby suburbs, Or Search Now for Real Estate & Homes in the Orlando Florida Area
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http://www.orlandofloridarealestatehomes.com/00A8F0 Posted on July 31, 2011 13:35:51 by Christopher Myers
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Leave a comment » Tax implications of a Short SaleBeware of the IRS If Your Creditor Writes Off or Settles a Debt
As more and more people throughout Orlando Florida are finding their sub-prime mortgage rates rise rapidly, a record number of foreclosures and short sales are occurring. A short sale is a great tool for many people experiencing hardship, however most people don't realize there are tax implications. Here in Orlando, many people don't even know what a short sale is or how it can helm, so we like to prepare our clients for everything they may encounter, so they can be fully prepared. For more information on how a short sale can be conducted, or what other options are available, please feel free to visit our website at www.OrlandoPropertyGroup.com and contact us directly. We advise all of our clients to consult with their accountant or tax attorney to fully understand how saving their credit through a short sale will impact their tax liability.
Does Your Orlando Realtor Understand Short Sales
Many Orlando Florida real estate agents don't know the nuances of negotiating a short sale with the bank. Make sure you use a Realtor that know's what they're doing. The IRS may count a debt written off or settled by your creditor as income to you. An IRS regulation could cost you money if you settle a debt with a creditor. This rule may also shrink your wallet if a creditor writes off money you owe -- that is, ceases collection efforts, declares the debt uncollectible and reports it as a tax loss to the IRS. (26 U.S.C. § 108.) Debts subject to this regulation include money owed after foreclosure, property repossession or on a credit card bill you don't pay. Under the IRS regulation, any financial institution that forgives or writes off $600 or more of a debt's principal (the amount not attributable interest or fees) must send you and the IRS a Form 1099-C at the end of the tax year. These forms are for the report of income, which means that when you file your tax return for the tax year in which your debt was settled or written off, the IRS will make sure that you report the amount on the Form 1099-C as income. There are five exceptions stated in the Internal Revenue Code, three of which apply to consumers. So even if the financial institution issues a Form 1099-C, you do not have to report the income on your tax return if:
The Internal Revenue Code does not define what is meant by insolvent. Generally, it means that your debts exceed the value of your assets. Therefore, to figure out whether or not you are insolvent, you will have to total up your assets and your debts, including the debt that was settled or written off.
If you conclude that your debts exceed the value of your assets, include IRS Form 982 with your tax return. You can download the form off the IRS's website. Completing it is simple. If your debts are enormous and your bank or other financial institution is willing to settle for less than you owe, it could cost you a lot in the end. Before accepting what sounds like a deal, have a tax preparer calculate your tax liability. If your tax bill will be too high and you cannot prove you are insolvent, you may be better off filing for bankruptcy and discharging the entire debt, if possible. If you plan to file for bankruptcy and want to include a debt that a creditor has settled or written off, talk to a bankruptcy lawyer -- preferably one who knows tax law. Some lawyers have concluded that on the day the creditor settles or writes off a debt, a "taxable event" occurs. This means that if you file for bankruptcy after that date, you cannot wipe out the debt unless your tax debt could be wiped out in bankruptcy. Other lawyers feel that the taxable event occurs on April 15, when your taxes are due, and that you can file for bankruptcy and wipe out the debt before that date, assuming it otherwise qualifies to be eliminated in bankruptcy. Finally, bear in mind this fact: even if you don't get a Form 1099-C from a creditor, the creditor may very well have submitted one to the IRS. You can take the risk that the creditor did not pass the information on to the IRS and "forget" to list the income when you file your tax return. But if the IRS has the information, it will send you a tax bill, or worse, an audit notice, which could end up costing you more -- because of IRS interest and penalties -- in the long run. Worried that you can't afford this tax liability? Thinking that foreclosure may be a better option? Think again! Your tax liability from foreclosure would likely be much higher if the bank forecloses. http://www.orlandofloridarealestatehomes.com/006857 Posted on July 12, 2011 10:08:58 by Christopher Myers
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Leave a comment » Foreclosures Climb Even With Loan Modifications
Recently released and a very sobering statistic: One in every 7.5 homeowners in the United States is either behind on mortgage payments or in foreclosure as of Nov. 30, according to Lender Processing Services Inc. of Jacksonville. And then there's this: Loans becoming more delinquent totaled 5 percent compared to 1.52 percent of loans that improved. http://www.orlandofloridarealestatehomes.com/00A5D0 Posted on July 08, 2011 11:27:51 by Christopher Myers
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Leave a comment » Foreclosures Bring Down Home Prices
USA Today recently reported about how appraisals are becoming a nightmare for many homesellers because of Foreclosure sales in the area. "Across the country, agents and homebuilders are complaining too many appraisals are coming in low, scuttling deals. The National Association of Realtors says nearly one in four of its members has reported clients losing a sale due to botched appraisals. The National Association of Home Builders, meanwhile, said low appraisals were sinking a quarter of all new home sales and argues it's not fair to compare distressed properties to brand-new homes. And that gets to the heart of the problem. Roughly 40% of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage. In some markets, like Las Vegas and Phoenix, they've hit more than 50%." There seems to be two sets of homes on the market, distressed sales and those that are not distress sales. It is important to remember that if you are buying or selling a home to take into consideration the distressed sales in the area, be it a short sale or a foreclosure. It is important to speak with an experienced Real Estate Professional to ensure that you understand the Orlando Real Estate Market. http://www.orlandofloridarealestatehomes.com/00A5F8 Posted on July 08, 2011 09:22:13 by Christopher Myers
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Leave a comment » Unemployment Rises and So Do Foreclosures
MIAMI (AP) - Jan. 14, 2010 - A record 2.8 million households were threatened with foreclosure last year, and that number is expected to rise this year as more unemployed and cash-strapped homeowners fall behind on their mortgages. http://www.orlandofloridarealestatehomes.com/00A5D6 Posted on December 17, 2010 11:22:14 by Christopher Myers
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