While it came down to the wire, Congress threw a bone to distressed homeowners as part of the Fiscal Cliff bill. They extended the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation through Jan 1. of 2014. Without this act in place, it could be possible for a homeowner who completed a short sale to owe what is called a “Phantom Income Tax” to the IRS. There are specific guidelines in this act and not every homeowner will qualify but it will cover a great deal of sellers who find themselves in this situation. As always, you can refer to the IRS link above as well as your local tax professional.
If you or anyone you know is upside down (owes more than what they can sell for), please have them call our team today at 567-250-4500. We have completed short sales with almost every lender including Bank of America, Chase, CitiMortgage, SunTrust, Ocwen, GMAC, Wells Fargo, Regions, Wachovia, Seterus, FHA, and many others.
Bank of America is offering some borrowers up to $30,000 to complete a short sale! Yes, you read that correctly. Of course, this short sale program has some guidelines and not all homeowners who attempt a short sale with Bank of America will be eligible. If eligible, Bank of America is using some formula to determine the exact amount.
For detailed information on the various BOA short sale programs being offered, visit the agent resource center at https://agentresources.bankofamerica.com/shortsale/program. While this site is designed for real estate agents, it can provide some useful information for borrowers seeking more information on short sales.
If you find yourself facing financial hardship and think a short sale might be a solution, the best course of action is to contact an experienced short sale real estate agent. Hiring an experienced agent can result in more money in YOUR pocket.
Matt Newman and the Newman Property Group have been successfully closing on short sales since 2007 in Metro Atlanta. Bank of America, Chase, Citi, SunTrust, Regions, RBC, and Wells Fargo are just a few of the mortgage lenders who have approved short sales for our clients. In some cases, the difference between the amount owed and the amount accepted by the lender has exceeded $600,000. Most of our clients have been able to re-establish themselves financially since their sales.
Some of our successful short sales:
150 Stone Pond Lane, Alpharetta, GA 30022
2034 Valley Brook Way, Atlanta, GA 30319
2919 Skyland Drive NE, Atlanta, GA 303 41
3324 Peachtree Road NE Unit 1512, Atlanta, GA 30326
3468 Dunlin Shore Court, Norcross, GA 30092
350 Chelsey Court, Alpharetta, GA 30044
4052 Statewood Road, Atlanta, GA30342
5301 Westchester Ridge, Atlanta, GA 30329
6050 Grand View Way, Suwanee, GA 30024
7025 Dressage Way, Cumming, GA 30040
9375 Stoney Ridge Lane, Johns Creek, GA 30022
103 Grandmar Chase, Canton, GA 30116
1258 North Coleman Road, Roswell, GA 30075
1660 Cobble Creek Way, Cumming, GA 30041
2725 Ivy Brook Lane, Buford, GA 30519
If you or anyone you know is facing a financial hardship or is being faced with having to sell for less than they owe, please contact Matt and the Newman Property Group today at 678-250-4500 for a free consultation.
We are pleased to announce our new “short or stay calculator” (www.ShortorStayAtlanta.com) for the Atlanta Metro Area. This powerful tool will help you evaluate your current situation in regards to how much you owe versus the estimated current value of your home. This tool should just be used as a guide and should never replace the assessment given by a professional. For a free/no-risk consultation, please call 678-250-4500 to schedule an appointment.
The real estate market in the north Atlanta area is showing some signs of balance. That being said, we have seen prices slide fairly consistently since our peak in the summer of 2007. The Case-Shiller Home Price index (all of metro Atlanta) shows our market has dropped more than 33% since the peak in July 2007. Even with the market showing signs of stabilization, or slight improvement, we on average have seen prices return to those not seen since the late 1990s. These market facts mean a high percentage of homeowners are underwater (owe more than their home is presently worth).
With such a high percentage of homes underwater, homeowners who find themselves needing to sell are left with only a few options. In many cases the dollar amounts needed to sell far exceed what most homeowners have available. This very fact is what I feel is actually going to help stabilize our market. Many are just opting not to sell at these price levels which is greatly reducing inventory in many local areas. The problem arises when a homeowner does not have this option available to them. Perhaps they are forced to relocate due to a job change, family change, or some other reason that leaves them no choice. One solution which many opt for are to lease their homes. While this may work for some, it may not for others. Many HOAs in our market place limitations on rental properties. That forces a seller/homeowner to find an alternative that will allow them to move on. The solution: “short sale”.
Since short sales have become so popular in the Atlanta market in recent years, most homeowners are aware of what they are. What they are not aware of are the many details that one involves. I just want to address one detail or issue that might have an impact on the number of short sales in our market in 2012.
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation was passed in 2007 and it generally allows taxpayers to exclude income from the discharge of debt on their principal residence. For full details on the Act please visit the IRS web page. Since we are not tax professionals, you must contact your CPA to find out more information and how it may apply to your specific situation. The point I would like to highlight is that without an extension on this act, short selling a primary residence after 2012 might have additional tax consequences that will have to be factored into a homeowners decision.
What this means for our market is that unless there is a move to extend this act by our government officials, we might see a flood of new short sale listings hit the market before the end of the year. If you find yourself in this position and would like more information, call us today at 678-250-4500.