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The Essence of Extension of the Mortgage Debt Relief Act

 News & Articles  1 Response »
May 152012
 

Mortgage Debt ReliefGoing by the LPS’s preliminary report, 2,060,000 properties are in foreclosure inventory. According to CoreLogic, 11.1 million borrowers were said to be underwater as at the end of 2011 fourth quarter.

That is a good amount of potential debt to be forgiven. However, through the provision of Mortgage Debt Relief Act of 2007, homeowners are relieved from the burden of remitting taxes on their forgiven debt, whether this debt was forgiven through modification, foreclosure, or through a short sale. Unfortunately, this act will be expiring at the end of this year.

Lance Denha, Esq., from Law Offices of Lance Denha, asserts that this scheduled date of expiry for the mortgage debt relief act brings much uncertainty for a number of underwater homeowners who are on their way to a foreclosure.”

Individual borrower would realize thousands in savings if the expiry of this act is extended. For instance, depending on one’s tax bracket, for every $10,000 in forgiven debt could earn $1,500 to $3,500 in federal taxes. Similarly, when a mortgage debt of $100,000 is forgiven after a foreclosure, it could in turn incur $15,000 to $35,000 in taxes owed for the borrower.

However, notwithstanding the warning by the Law Office of Lance Denha that it will be a mistake to rush in handing over a deed before expiration date of December 31, the Congress could still end up extending the debt relief act.

According to Mark Luscombe, Obama included it in his budget to extend it up to 2014. In another statement, principal analyst for tax research firm CCH, said that the, “Congress… might decide it is not as critical as extending tax breaks that had already expired at the end of last year.”

Luscombe argues that this will not stop the congress from eventually acting to extend the relief. He goes ahead to say that, finding a way to pay is normally the only option about these things. The administration has proposed the extension of this act until January 1, 2015.

The condition for exclusion of forgiven debt from taxable income include the debt come from a primary residence, it must also be used for buying, building or for a substantial improvement of a primary residence. The other condition is that the debt must be an acquisition one of up to $2 million, or $1 million if the married taxpayers are filing separately.

The role of this multistate law firm, Law Office of Lance Denha, is to defend wrongful foreclosures against the homeowners.

A Study About People And Mortgage Payments

 Mortgages, News & Articles  1 Response »
Apr 262012
 

Harris interactive a well-known firm in the marketplace research industry conducted a new poll and about 22% of all homeowners have difficulties paying their mortgage payments on time. Furthermore, 7% are capable of meeting their deadline, but have trouble.

Harris Interactive also discovered that about twenty-one percent of homeowners contemplate whether or not their mortgages are classified as being underwater. This term is utilized to designate homes that are so undervalued their mortgages are more than the amount they owe. As the economy continues to sink, a larger number of owners are starting to fall into this classification.

The poll reported that mortgages are decreasing. In Two thousand ten, sixty-nine percent of adults had mortgages; in two thousand eleven that figure fell to sixty-six percent. This shows two trends: individuals are not just losing their houses, but they are not purchasing anything new even though there are a larger number of inexpensive homes on the market.

Nonetheless, when it comes to people having troubles with their mortgage payments, there is a decrease between the figures acquired in two thousand eleven and the ones attained in two thousand ten.

Harris Interactive believes it is still too soon to decide whether there was real improvement. Foreclosure could be a chief reason that the statistics are declining.

Still, the stats do point to a rather slow recovery. The reason is they did match some other data from a study that was collected from Harris Interactive.

Just in terms of numbers, three thousand one hundred and seventy-one adults were polled in this latest study concerning mortgage payments. The poll happened in March of two thousand eleven, and it lasted seven days. All of the respondents took part of their own volition therefore; researchers did not compute the probability of error. No payment or other inducements were given, further solidifying the honesty of the information.

Hard Facts About Mortgage Payments

 Mortgages, News & Articles  No Responses »
Feb 292012
 

Harris Interactive, one of the leading names in market research industry, have recently undertaken a poll on timings of mortgage payments, the results of which are frightening and leaves profound consequences on the lending market. The number shows that around 22% of homeowners are finding it extremely hard to pay off their mortgages in a timely fashion, while nearly 7% of the lenders are found to be capable of discharging their loans within the stated period, that too with an extra effort on their part.

The research by Harris Interactive further reveals that around 21% of householders are completely unaware of the status of their mortgages regarding underwater category; a financial term that best describes under valued collaterals not being able to cover their indebted sum of loan. With a shrinking economy and a shrinking middle class who forms the majority of lenders, it is apparent why the number is increasing so fast in terms of households categorized under the underwater category.

Another important fact highlighted by the poll is the noticeable downslide in mortgages. Comparing the year 2010 to 2011, adult mortgages declined from 69% to 66%, a certain 3% reduction in percentage within the span of a single year signified couple of substantial facts. One is that despite the prices of real estate not in its majestic boom, prospective homeowners are rather reluctant to buy a house. The second and more apparent fact is since people are toiling to get off their debt, they are not encouraged to invest in new homes.

Amidst such berserk prospects, lenders can breathe a sigh of relief considering the fact that there was a downfall in number of individuals who were going through acute difficulty settling their mortgage installments in 2011, compared to the figures in 2010. However, Harris Interactive have their share of doubts over this substantial progress and have instead credited foreclosure behind such impressive stats.

Still, if the numbers above are considered fair, it cannot be asserted as a normal recovery if compared with industry standards. Harris Interactive compared these numbers with the collected data from another study and came to a conclusion that the growth is undoubtedly slow.

All the above facts were collected from an extensive research conducted on March, 2011. The research lasted for a week involving 3171 adults who were interviewed on the subject of mortgage payments. Since all the participants took part in the research at their own will, no provision was made for any possible sampling errors. The poll was conducted with an objective and impartial approach, which made the results unerringly definite.

Mortgage loans – How it can help you purchase your dream house

 News & Articles  1 Response »
Jan 072012
 

Do you dream of having your own home? Are you finding it difficult to fulfill your dream just because you do not have enough money with you? If yes, why don’t you think to take out mortgage loans and accomplish your long awaited dream of purchasing your own home? It is advisable that you make proper research before you take out a mortgage loan and make arrangement for the required money to buy your home.

How can you search for the right mortgage lender?

In this tough competitive market, you will find several mortgage lenders offering you the same type of mortgage loan. But, you must know that all mortgage lenders are not genuine and so, you should research thoroughly before you decide to choose one. You may take the help of Internet and gather sufficient information about them or enquire from your friends and relatives who have at least some knowledge in this matter. Purchasing your own home is a one time commitment that every individual makes and so, you should take sufficient time before you choose a lender to take out mortgage loans.

Why is it important to read the clauses properly before taking you a mortgage loan?

Before taking out a mortgage loan, it is very important that you go through the clauses properly. This is because many times it has been seen that a borrower takes out a mortgage loan in a hurry without reading the terms and conditions thoroughly and has to repent later since he is unaware that the lender has imposed heavy hidden charges on the mortgage loan. In this situation, a borrower has nothing to do but rather accept the extra charge that has already been imposed upon him by the lender.

What role does credit score play in case of mortgage loans?

Credit score plays a vital role when you want to take out a mortgage loan. You need to be aware that a mortgage lender will assess your credit score at first before he thinks of approving your loan request. As such, it is important that you have a good credit score before you approach your lender for loan approval. With good credit score, the lender feels that you are a responsible borrower and you know how to handle finances efficiently. Thus, you will get your loan approval at low interest rate and the lender believes that you will repay the loan amount on time. But, with bad credit score, the lender feels that you are a risky borrower and, as such, he will not agree to approve your loan request. However, there are some mortgage lenders who may agree to approve your loan request even when you have bad credit score on condition that you will have to pay high interest rate on the loan amount. Thus, it is advisable that you check your credit score properly before you take out a mortgage loan.

Thus, it is seen that by taking out a suitable mortgage loan, you will be able to get the needed money to buy your dream house.

- Contributed by MortgageFit Community member

3151 NW 4th Place Lauderhill

 Short Sales, Sold Homes  No Responses »
Nov 282011
 


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MLS Listing

Vacancy Stalls Southeast Florida Real Estate Market

 News & Articles  No Responses »
Apr 012011
 
by The Martignetti Group

 

Throughout the nation, as in southeast Florida, real estate markets are being negatively affected by the high vacancy rate. According to a recent U.S Census Bureau report, the vacancy rate for the nation is at 11.4%. The problem with a high vacancy rate is that leads to lower housing prices, which restricts the ability of the market to recover from the collapse of the housing bubble.
Of all the states, Maine has the highest vacancy rate, at 22.8%, but Florida is only slightly behind, at a rate of 17.5%. Some problems, however, have been raised concerning how the U.S Census Bureau determines vacancy.
These reports include second homes, vacation homes and beach houses as vacant if their owners do not spend a majority of their time there, as the census allows participants to select only one home as their residence.
For real estate analysts, the vacancy rates may seem to be an indicator of the vitality of the market, but Census Bureau reports have to be understood properly, as the situation is very different between a vacation home or a southeast Florida beach house, and a foreclosed home. In order to get a more accurate vacancy rate, a closer look that takes owned but not technically lived-in property into account is required.
For some states, further research has shown that a majority of these vacant properties are not truly vacant properties. In Maine, for example, over two-thirds of the vacant properties are vacation homes. In Florida, however, the vacancy rate is still high after taking forms of owned but technically vacant property into consideration, at around 10%.
While hopes are high that the southeast Florida real estate market will recover faster than the more conservative estimates, data such as vacancy rates is showing that the market may still have some tome to pass before making a full recovery.

What is a 1099-C?

 News & Articles  No Responses »
Feb 092011
 

by The Martignetti Group

Now what? My short sale was successful, although I just received a 1099-C for the cancelled debt. What is a 1099-C and what do I do now with the IRS?

Read this “How to” article “How to File Insolvency With the IRS!”

First and foremost, be sure you are working with an accountant who is experienced with this situation. You can certainly call me for referrals if you want or need!

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