Archive for March, 2010

New Foreclosure Prevention Plan Announced
March 29, 2010

President Obama is announcing an expansion of foreclosure-prevent tactics, including a plan to reduce principal balances and special aid for unemployed borrowers.

The bulk of the responsibility for carrying out the new program will be assigned to the Federal Housing Administration, which will insure lenders against part of the losses.

The plan asks banks to write down loan balances to less than the value of the home. If there is both a first and second mortgage, the combined total would have to be no more than 115 percent of the home’s value.

The Treasury would pay part of unemployed homeowners’ loans for three months while they job hunt.

Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (03/25/2010)

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Central Phoenix Townhouse back on the Market
March 25, 2010

My listing at 77 E Missouri #68 is back on the market.  We have reduced the price to $322,800 so I am expecting to get another contract on it quickly.  Check out the pictures, it’s a huge place in the heart of Phoenix!


March 18, 2010

Reduced price on 10204 N 12th Place.  I just dropped the price to $129,000 on this great condo. Freshly painted inside and a nice fountain and patio with mountain views.

When Losing a Listing is Good News
March 11, 2010

These days listings are hard to come by and when you lose one it’s rarely good news.  I recently lost one that I was happy about.  My client had been through a very tough time and was about to lose their home.  They had filed for a loan modification but like most, never heard back.  We had listed the home hoping to find a buyer that would give them enough that they could walk away from the house with a little to get started elsewhere.  A few months had passed and the foreclosure date was approaching fast. We decided to drop the price drastically and hope to get a short sale passed through before the house was lost.  At the very last-minute they received notice that their loan was being modified and they are now allowed to stay in the home.  So, this is one time that I am very happy to get to cancel a listing.  Anyone reading this that is in a loan modification program… keep up hope (and prayer).  Keep in constant contact with the lender and maybe, just maybe you will get lucky too!

Buyers… the time is now!
March 5, 2010

If you are considering buying a home… the time is now! With the expiration of the tax credit (April 30th) just around the corner, that is incentive enough for you to make a decision. Now with the U.S. Treasury Department printing money like there’s no tomorrow, that means one thing… inflation WILL rise just as sure as a river in the rain. With inflation rising, so will interest rates. Some experts are predicting that we could see 30 year rates in the double digits before the end of the year. This is not meant as a scare tactic to get people off the fence. It is simply a warning… if you have the means to buy a home you will not find a more perfect storm than now. Prices at a decade low, interest rates on the verge of a steep climb and the government (local and federal) have several programs offering funds that can be used to make repairs or even cover some closing costs.

My advice is to get approved with a reputable lender and choose your house quickly so you don’t miss the boat!

Possible Good News for Short Sale Victims!
March 2, 2010

In today’s market more and more people are forced to short sale their homes.  I just learned from a highly renowned Real Estate Tax Attorney that there is a little known law on the books that allows for the seller of a short sale to write off their deficiency and back track it 5 years.  This means that if you qualify, you could receive a check from the IRS for overpaid back taxes… that’s right a check BACK from the IRS.  Just to give you a quick overview of what it takes to qualify, the property must have been an investment property (rental property) and the short sale had to happened before the end of 2009.  Most tax accountants will tell you that you can write off the loss over the next 20 years (standard tax law) but under this little known law, you can actually claim the loss on back taxes for the last five years.  If you paid taxes over the last five years you could collect a check from the IRS for over paying taxes NOW! If you are interested in more information about this I you can contact the office of Kingman Winslow toll-free at 866-728-4107 or you can contact Marianne Kingman by email at mkingman@kingmanwinslow.com

I also have great news for people who are candidates for short selling their primary home.  I can show you how you can write off 100% of your deficiency (difference between what is owed and selling price) so you don’t have to pay taxes on that amount either.  Someone may have told you that you don’t have to pay taxes on the deficiency anyway.  Here are the only three exceptions to getting a deficiency relieved: 1. You have not refinanced your home since the time you bought it.  2. If you did refinance the home, ALL of the proceeds (cash out) from the refinance were put back into the home in a remodel or repairs. 3. Your liabilities exceed your assets at the date of sale. In other words you have a negative net worth.  Most people do not qualify but I highly suggest you seek the counsel of someone who knows the laws inside and out.

If you are interested in more information please feel free to contact me via email at TLee@TLeeRealty.com