Selling Home For Less Than Owed

Selling Idaho Home For Less Than Owed

*  When should you consider selling your house under its present value?
* Tax issues should be taken into consideration
* Be upfront with your lender about why you’re selling your house for less than it’s worth

If you’ve taken out a large mortgage, and perhaps refinanced to cover remodeling or other expenses, you may find yourself unable to keep up with your mortgage payment after a layoff, divorce or illness. More and more people are finding they need to sell their homes for less than they owe on the mortgages, known as a “short sale.”

Selling short is definitely better than foreclosure, which stays on your credit record for ten years. But it’s best to try to work things out with your lender before going through the embarrassing and laborious process of selling your home on a short sale.
Tax Issues

Before you put your home on the market for a short sale, it’s best to talk with a tax advisor about possible tax repercussions. It’s likely the IRS will consider the difference between the value at which you sell your home and the mortgage balance as “income” on which you’ll have to pay taxes.

An exception to this rule is if you can prove that you were “insolvent” – that your debts were bigger than your assets- before your mortgage lender agreed to a short sale of your property. A tax advisor will be able to tell you for sure whether you’d be considered insolvent by IRS standards.

If you can’t prove you’re insolvent, and the tax bill on a short sale would be more than you can pay, you may have to let the mortgage lender foreclose, or declare bankruptcy.
Be Upfront With The Real Estate Agent

If you find selling you house for less than you owe on the mortgage is an option short of foreclosure or bankruptcy, you’ll want to find a real estate agent who understands your situation. Agents typically take a much lower commission on short sales, and it often takes much longer to actually close the sale once the seller accepts an offer. But many agents sympathize with financial problems brought on by unexpected circumstances, and may want to help.
Convincing Your Mortgage Lender

The buyer will need your help in negotiating a short sale approval with your mortgage lender.

Your bank will have to be convinced that you deserve to be approved for a short sale. You’ll need to tell your mortgage lender about your financial hardships, including layoffs, divorce or medical issues.

While this may seem obvious, now is not the time to rack up the purchase of luxury items, like fancy cars or jewelry. Your lender will see these debts on your credit report and become convinced you’re a loose spender who doesn’t deserve a break.

It may also be necessary to provide the lender, either directly or through the buyer or buyer’s agent, documentation of your financial hardship, such as paystubs, bank statements and so forth. While this may seem like an invasion of your privacy, try to think of it as the fastest way out of an otherwise overwhelming debt.

Short sales take much longer to close than more conventional sales, so plan accordingly. If it works, you’ve avoided bankruptcy and an ugly mark on your credit report. If it doesn’t work, you’ll know that you’ve done everything you could to avoid foreclosure and/or bankruptcy.
Questions For Your Attorney:

* Are there any tax advantages for selling my house below its worth?
* How much lower than its value should I sell my home before I keep it?

If you have are seeking an experienced short sale agent go to www.idshortsale.com and fill out your private complimentary short sale application form and see how you may qualify. Joshua Groesbeck 208-353-7131

Source:Bennett

Negative Equity Soars In Bosie Metro Area

In the Boise metro area, 34 percent of homes are now worth less than what is owed on the mortgage.

Homes in this category are referred to as “underwater” or “upside down” properties, and their ranks have been growing as home values have declined.

The Boise area’s performance has been worse than both the national average and the state average, according to national research firm First American CoreLogic. Nationally, 24 percent of all residential properties with mortgages were in negative equity at the end of the fourth quarter of 2009. In Idaho, 23 percent of residential mortgages (53,663 homes) were under water in that quarter.

“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners,” said Mark Fleming, chief economist with First American CoreLogic. “Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”

If you are having trouble making your house payment or want to know if your home is “underwater” please go to www.homeswithjosh.com or idshortsale.com

Source: IBR

2010 Year Of The Short Sale

Ada county had 77 short sale properties  fund and record in the month of February 2010. Prices ranging from $531,700 down to$53,000. Ada county includes the cities of – Boise, Garden City, Eagle, Meridian, Kuna and Star.  That is a 100% increase of short sale homes closed from the same month last year, are we seeing a trend? 2009 highest sold price was $700,000 and the lowest was $120,000.

Canyon county had 32 short sale properties fund and record in the month of February 2010. Prices ranging from $359,000 down to $42,000. Canyon county includes the cities of – Nampa, Caldwell, Kuna, Melba, and Middleton.  That is a %90 increase of short sale homes closed from the same month last year, I ask again are we seeing a trend? 2009 highest sold price was $417,500 and the lowest was $71,070 (not including a manufactured sale of $12,500)

So for comparison we have the month of February in 2009 and again the same month for 2010, closed short sales are up while prices have continued to go down. I do feel that values should start finding the floor while more and more short sales get completed. While loan modifications are still trying to make sense (will they write principle balance down to current market value?) or will 2010 be the year of the Short Sale! April 5th is the deadline for new short sale rules to be rolled out which should increase the success of short sales closed. Sum it up short sales sold are up and the prices are down- Great time to buy and also could be a great time to take a look at your home if it is underwater and you have trouble making payments- If your are wondering what your options are and would like assistance please don’t hesitate and call Joshua Groesbeck 208-353-7131 or visit http://www.homeswithjosh.com or http://idshortsale.com

Certified Distressed Property Specialist 208-353-7131

statistics are from the intermountain mls

Idaho Short Sale

An Idaho Real Estate Short Sale of a property, in it’s simplest form, is the process of selling your property for less than what is owed to the lender, with the lenders approval. If you are looking for realtors that do short sales than you have come to the right place, we do Idaho Real Estate Short Sales.

This process is used generally to prevent Idaho Foreclosure, and a home owner can qualify for a Idaho Short Sale if they have had financial hardship and their property is worth less than what is owed to the lender.

Many home owners purchased their homes with adjustable rate mortgage, interest only and even negative amortization loans. These loans don’t provide any payoff of the principle and payments can fluctuate and/or increase over time.

Other home owners have lost a job, had a death in the family or other unforeseen situations that have devastating affects on their financial situation. With their financial situation worsening and home values continuing to decline many people are seeking an Idaho Short Sale as a viable exit strategy.

To see if you qualify go to http://idshortsale.com/

Approved Nampa Idaho Short Sale

Desirable Bridgewater Estates now offers this approved Nampa, Idaho short sale. Wonderful short sale home sits on just over 1/3 acre lot with extensive landscape and easy access to interstate 84 making it a quick commute to Boise and all surrounding cities. Everything has been done with the bank calling me on friday January 29th with to go ahead to sell this short sale. $154,900 best price by far in this neighborhood.  Grab you real estate agent or call Josh direct 208-353-7131 and let’s make you a home owner in 2010. $8,000 tax credit for first time home buyer or $6,500 if you are a repeat buyer. Link below will take you to this great home!

http://www.homeswithjosh.com/search/

Idaho Short Sale Tips

#3   Put Together A Well Organized Short Sale Package

Your Idaho real estate agent should provide you with a list of the lender’s requirments and  At a minimum, the lender will want to see:

* Your hardship letter;
* A balance sheet listing your monthly income and expenses, or a profit and loss statement;
* Statements from your checking, savings and other asset accounts;
* A net sheet from your Idaho real estate agent listing all of the closing costs that must be paid for your short sale to close;
* A current Market Analysis (CMA) or a Broker Price Opinion (BPO)
* Supporting documentation, including two months’ worth of paycheck stubs and all of your household bills, including HOA dues;
* Your last two federal income tax returns.
* The offer to purchase your home, including the buyer’s preapproval letter, once it is received.

Best to turn in package that is complete otherwise you could end up on the cutting room floor. Many bank staffers are over worked and will only look for well put together short sale packages. Trust me they want to work easier not harder, they do not want to come back for left out items that will only cause your short sale to become buried a under huge stack of growing short sale files. Get on top first this is very important.

Idaho Short Sale Tips

2. Authorization Letter

You will need to get an authorization form either from your lender or your experienced Idaho real estate agent will have one. Once your idaho real estate agent is authorized to speak with your lender about your home it is time to sit back and let that agent shine.
Let them be your voice with the lender.  Part of the listing agreement will include a “short sale addendum”, which will outline the rights and duties of your agent also allowing your idaho real estate agent to negotiate with the lender’s on your behalf. Your real estate agent should give you a clear line of communication and update you with all negotiations with the lenders.

Idaho Short Sale Tips

1. Choosing The Right Idaho Real Estate Agent

If you are struggling to make your house payments or believe that your home is worth less than what is owed contact a reputable real estate agent that has experience working with short sales. All agents can get a designation and call themselves the short sale expert but make sure that they have actually been on the battle field before. I see to many short sales on the mulitple listing service go nowhere and wonder what could or should have been done differently.  First, I would contact a reputable Idaho real estate agent and they can help you be proactive towards getting your case number in front of your lender’s work out department. Looking out for your best interest these are Idaho Short Sale Tips.