The following is a testimonial from a client who’s house I sold in Orange, CA. I’m so lucky to be working for such wonderful people.
Sue LaPeter did an absolutely fantastic job for me selling my house in Orange, CA. I interviewed four agents, and she was the only one with a really strong plan for selling the house beyond the basic marketing “mumbo-jumbo” that any agent is going to give you. She recommended staging my home which made sense to me because the furnishings I owned and had in my home were less than optimal for the purpose of showing the home. She negotiated a very good rate for the staging and I got very attractive terms. Sue hit a home run. She hit it outta the park. We sold the Orange County house after 4 days on the market at a price higher than any of the other agents thought it would bring. You might get lucky and do “as good as”, but you will never do better than Sue LaPeter for selling your house.
By Forrest Jones
Housing prices should grow an average 3.9 percent for the next five years, according to the Fiserv financial services and technology firm. Prices will likely begin to climb this summer, quickly in some parts of the country, with investors driving momentum. As of now, home prices are down 35 percent from their peak in 2006, Fiserv reports, adding today’s prices don’t adequately reflect the health of the sector.
“The year-over-year decline in average home prices does not tell the full story of stabilization and recovery. Nearly all non-price metrics — existing home sales, rising home order volumes, increased spending on home improvement, a jump in multi-family construction — indicate that the housing sector hit bottom last year and has started along a path of slow recovery,” David Stiff, chief economist at Fiserv, says in a statement.
“The recovery this spring and summer will be driven by investors, who buy primarily in lower-cost markets. In the current environment, focusing on mortgage applications is not a true indicator of sales activity, as investors are less likely to finance home purchases via mortgages,” Stiff says.
“We expect that home prices, which generally lag changes in sales activity by nine to 12 months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9 percent over the next five years.”
Separately, market researcher CoreLogic reports that U.S. home prices rose 0.6 percent in March from February, the first month-over-month increase since July of last year, USA Today reports.
While housing remains in the doldrums today, other signs point to recovery. An increasing number of hedge funds, asset managers and investment banks are rolling out vehicles that will invest in the mortgage sector, namely in securities backed by home loans or even in bargain-priced mortgages themselves. Even if housing delays its recovery, mortgage-backed securities provide higher yields relative to Treasurys thanks to low interest rates.
“There has definitely been a pick-up in investor interest in the asset class and the amount of interest has caused managers to want to come to market with a product because they know there is an appetite for it,” says Michael Roth, co-founder of Stark, a $2.4 billion hedge fund, according to Reuters.
“Where does the yield-hungry investor go to whet their appetite? Investors were waiting to see if they could get yield in other places and found it was not happening.”
The Mortgage Debt Forgiveness Act of 2007 has been a tremendous help to homeowners who have had to modify their loan or have had to foreclose. But the Act expires at the end of this year. Here’s everything you need to know about the Act. If you’re ready to short sale your home in order to take advantage of of the debt forgiveness act, email Sue at firstname.lastname@example.org.
Why does the Mortgage Debt Forgiveness Act of 2007 exist?
Federal law requires that any debt forgiven, over $600, be taxed because it is seen as income. So, if you had a debt of $1,000, and that debt was forgiven, the government would see that as a $1,000 income and would tax you on it.
During the recession, thousands of people where loosing their homes to foreclosure or short sale, or they modified their loan to make payments more affordable. Any debt that was forgiven in that process was taxed. But as we all know, lack of jobs and income, the stock market crash and loss of homes made it impossible for many people to pay the taxes on their forgiven debt. Consequently, the government created the Mortgage Forgiveness Debt Relief Act of 2007.
What is the Mortgage Debt Forgiveness Act of 2007?
The Mortgage Debt Forgiveness Act of 2007 prevents the government from taxing people on the amount of debt forgiven as a result of modification of the terms of the mortgage, or foreclosure on your principal residence. So, if the principal on your loan is reduced, if your interest rate is modified, if you short sale your home or if you’re foreclosed on, you will not be taxed for the amount of money forgiven.
Is the Act permanent?
No. It is set to expire December 31, 2012. In order to take advantage of the Mortgage Debt Forgiveness Act, homeowners must COMPLETE refinancing, a short sale or a foreclosure by December 31. The process for completing these can often take months, so if it’s in your best interest to refinance, short sale or foreclose, now is the time to do it.
Other things you should know.
- The Mortgage Debt Forgiveness Act is good on amounts up to $2 million, or $1 million if you are married but filing separately.
- The law only applies to primary residence, and debt incurred to buy, build or improve a primary residence.
- To qualify, you must claim the special exclusion by filling out form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attaché it to your federal income tax return for the tax year in which the qualified debt was forgiven.
- For more information, visit the IRS government site and LA Times.
Photo taken from Stuart Miles/ FreeDigitalPhotos.net
For the month of March, Prime Lending captured the #3 spot behind the big banks on purchase business. Because of the employee exodus from Bank of America to Wells Fargo, I am sure there may be fulfillment challenges with big banks across the board.
Remember Prime Lending on your next purchase. Our goal is to qualify more borrowers due to less overlays! Thank you for your continued business!
Less overlays include:
- Condo’s up to 95% LTV WITH Gift funds
- Qualify with 1 year tax returns
- 10 properties financed