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Archive for the ‘Mortgages’ Category

Mortgage Debt Relief Act Expiration

Posted by Chris On January 2

What About the Tax Break for Short Sellers?

Mortgage Debt forgivenessIn a clear indication of where our market is today compared to where it has been over the last few years, there has been an eerie quietude regarding the expiration of the Mortgage Debt Relief Act.  Indeed, neither NAR’s nor Florida REALTORS® sites are treating this as front page news.

With short sales comprising a much smaller portion of our market, this treatment is somewhat understandable.  But you ought to be aware of what is happening in Congress and how it may affect your clients’ interest in short selling their property.

You will recall that the Mortgage Debt Relief Act of 2007 exempted from taxation certain types of cancelled debt.  Ordinarily, cancelled debt is treated as income by the federal tax code.  Under the Act someone who closed a short sale in 2013, for example, and whose lender cancelled the deficiency balance (i.e., the difference between the total owed and what the lender netted from the sale), might have been able to avoid having to pay income tax on that deficiency balance.

The Act was a boon to many who have successfully closed short sales or who have received principal reductions over the last handful of years; and the Act provided a much needed boost to the real estate industry by smoothing the way for more of those deals to close.

The Act officially expired yesterday, January 1, 2014, after which short sellers must carefully consider the tax implications of their potential cancelled debt.  There are efforts afoot in Congress to extend the Act and to do so retroactively.  According to a article, “the extension has strong bipartisan support”, which is not surprising and which should breed some hope in the minds of distressed homeowners.

Unfortunately, though, there is no guarantee that the provision will be extended retroactively.

So what do we do in the meantime?

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We’re honored to have a guest blogger, Gabriel Knight, for this post. ~Chris

Florida is the fourth most populous state in the US and for good reasons. With the awesome temperature and miles of beaches, there’s no doubt why Florida is called the “Sunshine State”.

Florida has always been a dream destination for families and most residents are drawn toward this state for its weather and cities. Although real estate prices vary dramatically throughout the state of Florida, mortgage rates have been insanely low throughout 2012 and even in the first quarter of 2013.

5/1 Adjustable rate mortgage loans are available at 2.38%, 15 year fixed rate mortgage loans are being offered at 2.75% and 30 year fixed rate mortgage loans at 3.75%.

With the record-low mortgage loan rates in Florida, there are increasingly large amounts of people who are looking to refinance their home mortgage loans.

Opting for a mortgage refinance in Florida – Should you act now?

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Mortgage Rates on the Rise!

Posted by Jillian Dohack On June 6

Mortgage Rates are on the Rise

I am always interested in knowing what is going on with the real estate market, most likely because I am in the business. Lately we have been hearing more and more about the rise of mortgage rates each week.

So that poses the question, are the most attractive interest rates in history coming to an end?

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Are Lenders Easing Up on Down Payment Requirements?

Posted by Jillian Dohack On April 3

Are Lenders Easing Up on Down Payment Requirements?

It’s true.  I read a few different articles last week that state exactly that.  In the slow recovery of the housing crisis, the mortgage industry is definitely starting to see some great improvements.

Tight credit conditions that have held many potential home buyers back the last few years appear to be thawing just in time for this spring’s market (as reported by CNBC).

Typically the biggest challenge for home buyers is the down payment.  It is being said that home-buyers may now be able to qualify with lower down payments.

This is big news and a huge change from the last four years when 20 percent down payments on a loan were basically required.

I read a recent article “Will Lending Standards Ease at All in 2013?” by Miami Agent Magazine. They state that in the most recent survey of senior lending officers by Moody’s Analytics, lending standards may be easing slowly.

Though 82 percent of loans the past two years have gone to borrowers with the highest credit scores (compared to 50 percent in 2005 and 2006), the survey did show that over the past 18 months, large lenders either loosened or left intact their lending standards on prime mortgage originations.

Is Fannie Mae Easing Up Too?

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.