Archive for month April, 2008

Many Homeowners Can Claim Tax-Free Mortgage Workouts on 2007 Taxes

Wednesday, April 30th, 2008

From an article at the IRS Website, announced February 2008:

See the full Article at the IRS website.  This is GREAT news if you went through a short sale in 2007.  Starting in 2008, the law now says that forgiven mortgage debt is NOT income to the individual home owner (this does not apply to investors).  This last-minute law extends that back to 2007, but YOU need to take action to claim it.  You need to know about it, to do that.  And that’s why I’m here.  I keep my eye out for things like this to help you.Talk to your tax preparer to help you avoid this tax if you received a 1099-C form for the forgiven mortgage debt.  Let us know here how it went!  If you have already filed your taxes, you can file an amended tax form, just ask your tax preparer.  And for this particular issue, you really want to go to a professional, the difference in what you will have to pay is many times what the preparer’s fee will be. 

Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on this Web site.

“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”

The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.

It’s a Contest!!!

Monday, April 28th, 2008

In  our effort to help people who are seriously in trouble with their mortgages, we are looking for search terms that they might use to find us.  The person who helps us with the most usable (searchable) phrases will win dinner on me.  If you are, or know someone who might be, in this situation, what would you (or they) search for on the internet to get help?  If you don’t know anyone like that, imagine yourself in this situation and think of what you would look for to get out of it.  Here’s the situation

  1. Mortgage is 95% or more of the market price of the house.
  2. The mortgage company may be sending intimidating letters/phone calls.
  3. Looking to the future, the likelihood of catching up and/or continuing the current mortgage payments is low – due to some significant financial change.
  4. For some reason, possibly loss of job (causing the financial change above) or bad credit or legal status, refinancing is not an option.
  5. In summary: if the house is not sold, foreclosure or bankruptcy is likely; if it is sold, the price will not cover the mortgage and sale costs (commission, fees, etc.) – which could mean writing a big check to get out of the house.

First: If you are just now reading this because your search engine ran across this page, you are in luck.  We can help.  You can start by clicking here on my short sale FAQ to get an idea of what a Short Sale is and how it can help you out of your mortgage dilemma.  If you are looking for an Agent to help you list your house for a Short Sale in the Metro Atlanta area, you have found the right person.  And by all means, add a comment here explaining what you searched for that caused you to find my page!

Second: DO NOT BE EMBARRASSED if you are in mortgage trouble.  Bad things happen to good people.  You may have lost your job or had a family member go into the hospital with huge medical bills – life happens.  Rest assured that we can help.  I have helped people who have come to me in dire circumstances such as losing their spouse or being defrauded by the people who sold them the house or the mortgage lender.  Keep your head up, and let me help you keep it above water.

For those here for the contest, what words or phrases would you put into your search engine (whether it be Google, MSN, Ask Jeeves, or any of the hundreds of others) to get ideas for you, or your friend who has asked for your help?

Add this extra challenge: If you are here, you must have an idea what a Short Sale is.  Imagine you had never heard of it before.  What would you search for then?

Please add your comments, ideas, and suggestions on this Blog.  I want to hear from you.  And if you have the most ideas, you’ll get a dinner out of it for your trouble.  And on top of it all, you will have the pleasure of knowing that you have helped people out of their mortgage nightmare, and start on the path to rebuilding their financial lives.

Welcome to my Blog

Friday, April 25th, 2008

Hi everyone.  Welcome to my BLOG.  This is where you and I will chat about what’s going on in the world of Short Sales in the Metro Atlanta area.  This blog is for buyers, sellers, and investors to communicate with each other, and with me, about short sales.  You will soon find articles explaining what a short sale is, why you might be interested in them, and how the process works.  As we navigate through this tough economic time, with the mortgage market in chaos and adjustable rate mortgages forcing people out of their homes, this will be a very important and active topic.

I am just getting this set up now, so there is not much to see.  I’ll have much more soon, so please come back often.  In the mean time, you can check out the information available at my website, probably beginning with http://www.shortsale-queen.com/ss-faq.htm – it will give you the basic information.  I’ll expand on it a lot more here later.