I'll Figure It Out...!

YOU Can Make It Happen...!!!

 

Thomas Jefferson... a very remarkable man...!!!

John F. Kennedy held a dinner in the white House for a group of the brightest minds in the nation at that time. He made this statement: "This is perhaps the assembly of the most intelligence ever to gather at one time in the White House with the exception of when Thomas Jefferson dined alone." Thomas Jefferson was a very remarkable man who started learning very early in life and never stopped.

At 5, began studying under his cousin's tutor.

At 9, studied Latin, Greek and French.

At 14, studied classical literature and additional languages.

At 16, entered the College of William and Mary.

At 19, studied Law for 5 years starting under George Wythe.

At 23, started his own law practice.

At 25, was elected to the Virginia House of Burgesses.

At 31, wrote the widely circulated "Summary View of the Rights of British America” and retired from his law practice.

At 32, was a Delegate to the Second Continental Congress.

At 33, wrote the Declaration of Independence.

At 33, took three years to revise Virginia’s legal code and wrote a Public Education bill and a statute for Religious Freedom.

At 36, was elected the second Governor of Virginia succeeding Patrick Henry.

At 40, served in Congress for two years.

At 41, was the American minister to France and negotiated commercial treaties with European nations along with Ben Franklin and John Adams.

At 46, served as the first Secretary of State under George Washington.

At 53, served as Vice President and was elected president of the American Philosophical Society.

At 55, drafted the Kentucky Resolutions and became the active head of Republican Party.

At 57, was elected the third president of the United States.

At 60, obtained the Louisiana Purchase doubling the nation's size.

At 61, was elected to a second term as President.

At 65, retired to Monticello.

At 80, helped President Monroe shape the Monroe Doctrine.

At 81, almost single-handily created the University of Virginia and served as its first president.

At 83, died on the 50th anniversary of the Signing of the Declaration of Independence along with John Adams Thomas.

Short Sales and Tax/Income Implications

This past weekend I had an agent ask me about the tax/income implications of a short sale. She said that her seller was concerned about both the tax/income implications and the future possibilities of a deficiency judgment against her seller. To answer the questions let’s begin with an understanding of the complexity of short sales and possible tax/income implications.

First, let me state that I am not an attorney nor a tax or real estate accountant; and these statements or facts should not be construed to represent a solution to any questions you or any of your clients concerns; however, if a referral to an ‘expert’ is required, TEAM ShortSale will refer to you one of our qualified legal or tax ‘experts’.

When the question of a homeowner wanting to sell their home and avoid a senior or junior lien holder pursuing a deficiency judgment there is protection provided under Senate Bill 931; and subsequent Senate Bill 458 which expands upon the previous short sale anti-deficiency laws. In other words, upon accepting the terms of the short sale, junior lien holders now agree to waive their right to pursue a deficiency judgment. The borrower cannot be required to owe or pay for a deficiency in a short sale. These two California Senate Bills (SB-931 & SB-458) coupled with The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. And now as of 2013 the State extended protection under the passage of the California Homeowner Bill of Rights.
 
If you are a homeowner whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2013, you may be able to claim special tax relief and exclude the debt forgiven from your income.

Here are 10 FACTS the IRS wants you to know about Mortgage Debt Forgiveness (Taken from IRS.gov). The Mortgage Forgiveness Debt Relief Act of 2007.

1.  Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit is $1 million for a married person filing a separate return.
3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt   forgiven in a foreclosure.
4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes -- for example, to pay off credit card debt -- do not qualify for the exclusion.
7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans do not qualify for the tax relief provision. In some cases, however, other tax relief provisions -- such as insolvency -- may be applicable. IRS Form 982 provides more details about these provisions.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

The most important thing to remember is pay particular attention to the Short Sale Approval Letter you receive from the lender, and if you are not clear that your client has been offered relief from the debt under The Mortgage Debt Relief Act, immediately seek legal counsel. “I’mjustsayin’ TEAM ShortSale”

And the Winner is...?!?!

WSJ House of the Week

Shadow Inventory is 85% of Distressed Properties...!

Serious delinquencies continue to hold back the wests recovery; Arizona and California need more improvement. The Shadow Inventory overall has fallen to $2.2 million homes... a 28% decrease from its peak.

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Real Estate...! It's Real Estate They Want...!!!

Investors are looking to invest; forget putting your money into the internet or some other IPO. It's Real Estate they want...! People NEED REAL ESTATE...!!!

Yes, Yes, We Closed Another Short Sale...!

 

North Hills, CA - +Bonnie Truong Nationwide Realty

 TEAM Short Sale - We Get Approvals... YOU Get Paid...!

 

 

What's a Whiffle Ball...?

This illustration is a study of texture, shape, space, shadow, light and dark without the use of lines... look closely there are no lines in the drawing. The Art of the Illustration; is a Whiffle Ball... a useful tool...???

New Home Builders Taken by Surprise...!!!

Homebuilders are scrambling to ramp up production to meet demand of new home buyers... but where are the houses  ...???

Economic headlines...not always the bottom line...!!!

Statistics, facts, figures, reports, as well as commentary is not always a true representation of what the real truth is; without looking through the Economist's Lens the headlines rarely reflect the bottom-line....!!!

Italia - land of young cattle...

 

A photographic study of Italia; (Greek) meaning "land of young cattle"; these photographs depict an artist view of Italy traveling from the incredible city of Venice; a city of islands, lagoons, canals and bridges; to Verona, Florence, Rome, Lecce and the beautiful west coast city of Sorrento. All of these photos have been enhanced with various techniques of color saturation to express my artistic impressionism.

I hope you enjoy them.

Re/Max All-Pro Strikes Again...!!!

Another Short Sale Approval...!!!

 Lancaster, CA - +Diana Blum Re/Max All-Pro

  TEAM ShortSale We Get Approvals... YOU Get Paid...!

Trouble in Cyprus...! It Can Happen Here, Too

"The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence." --John Adams

Big Darrell...!!! We Miss You Brother.

 

Darrell loved life. He was so much too so many people. He was charismatic, joyful, a friend to all, even to someone he just met, always ready to ride his Harley. Kind hearted as well as tough as nails, Darrell always wore a smile; never a bad word toward anyone. He loved his fast cars and motorcycles but he also loved family time and nature. Darrell lost his battle with Pancreatic Cancer March 21, 2010.

To those who have ridden these roads with Darrell, a man who drank hard, rode fast, and died too young... we miss you brother." October 9, 1942 - March 21, 2010

 

 

My Debt Limit...!!!

itsaBank...? I'd like to raise my debt limit...!!!! 

Another Short Sale Closed...!

Ontario, CA - C-21 Town & Country Real Estate

 

TEAM Short Sale - We Get Approvals... YOU Get Paid...!

 

 

 

 

The Kid's Dream Home is at Grandma's House...!!!

Let's go to Grandma's House... today's grand-children are getting spoiled rotten by their grand-parents...!

Venetian Shutters

 Italian Shutters, the reason they are there is because, in stone, stucco, or brick construction, you have natural daytime air conditioning if you don't let too much sunlight in during mid-day. You never see air-conditioners, because they don't need them. The low-humidity Mediterranean climate, with cool nights, is perfect for humans living with stone buildings.

Social Media... Big Brother Is Watching...!!!

Social Media is under attack by an intrusive overprotective government. The FFIEC has proposed new “examination procedures” for SOCIAL MEDIA compliance and reporting. The Proposed Rule will change forever how we use social media as a tool to market ourselves. if you would like to read the entire 36-pages of new rules click here:  FFIEC Guide 

Is the Cyprus Deal a new trend on bailouts for non-preforming Banks; could this be the opening of Pandora's Box ?

Taxpayer Bailout proposed to bolster FHA, sound familiar...? Government writing new legislation creating more problems than it will fix...!!

ROAD TRIP...!!!

Time for a road trip south to Coronado Island in San Diego to celebrate St. Patrick's Day at McP's Irish Pub. can hardly wait...!!!

Spring Is In The AIR...!!!

A report by Realtor.com shows listing inventories increased by 1.15 percent month-over-month in February, and houses stayed on the market for an average of 98 days, down 9.26 percent from January. Spring is in the Air

It's Time to Banish Green Beer...!!!

March 17th we celebrate St. Patrick's Day, don't you think we need to get serious about Irish sips?

 

A growing number of drinkers have discovered Irish Whiskey. In the past decade - clearly the fastest growing adult beverage - sales up nearly 400% since 2002 and 22.5% in the past year alone.

OK, honestly you can drink whatever the heck you want, but if you are going to drink green beer this upcoming St. Patrick's Day, you're kind of a dullard. Green beer is not only offensive to the Irish, it's offensive to beer. It's like wearing horned "Viking" helmets, or adding ice to your white wine (Note: Actual Viking helmets did not have horns. Horns were a drinking vessel). It can be done, but it's just not right....!!!

And the worst part is that most of the time the beer dyed green is pale, thin, flavorless beer to begin with.

12 Ways to Get Your Short Sale Approved...!

If you’re a short sale ‘expert’ you probably know just about everything there is to know about short sales. That being said, if you are working in the distressed property market here are my 12 ways to get your short sales approved in 2013…

 

No.#12 Understand available Short Sale Incentive Programs.

No.#11 Collect all documents for the Short Sale Package at the listing appointment.

No.#10 Run the Statement of Information when the short sale listing is taken.

No.#9 Order (and read) the preliminary title report when the listing is taken.

No.#8 Order  Repair Bids and Pest Control Bids prior to submitting your short sale to the bank.

No.#7 Assure that the settlement statement (HUD-1 Estimate) that you submit to the bank has the correct figures for your closing date.

No.#6 Submit a complete short sale package to the bank (including a fully executed offer).

No.#5  Do not use or accept electronic signatures.

No.#4 Maintain regular weekly communication with all parties during the negotiation process.

No.#3 Make sure the short sale sellers have decided where they are going to live before the deal closes.

No.#2 Follow up regularly with the lender(s).

And, the number one way to get more short sales approved in 2012… It doesn’t matter what happens. It doesn’t matter who bullies you or yells at you. It doesn’t matter that you have already faxed the same short sale package to the bank 56 times. Whatever happens, maintain a positive attitude and you will succeed!

I'mjustsayin' TEAM ShortSale

 

Pizza...! I Just Love PIZZA...!!!

When I travel abroad I always look for the local Pizza place. Pizza... I just love PIZZA...!

Photographed by Phillip Allen at NY Subway

The "Trump Factor"

Affluent homeowners who fall behind on mortgage payments have a better shot at keeping their home. Using The Trump Factor in avoiding Foreclosure... is it affective...???

Phillip Allen's Blog

 

Welcome to my new Google Blogger Page...! I will be sharing all of my deepest thoughts... I hope you will find insight, gain knowledge, become enlightened, enjoy my humor, and most of all have fun with my quotes, commentary & 60+ years on the planet.

Feed-back is always encouraged...!!!

Please join in my circle of clients, follower, friends & family by visiting my Google Blogger Page

Best Regards,
P.D. Allen
TEAM ShortSale 
909.376.8750 DIRECT
DRE#00844713
mailto:pallen@teamshortsale.net

Non QM Loans May Slow Recovery...!

Federal Reserve Governor indicates that new consumer protections may come at a cost to the industry as lower-quality-credit borrowers are precluded from the housing market. The new ability-to-repay-rules may slow first time buyers from qualifying; and "the move up market will be sluggish."

In my opinion slow recovery is much better than what saw as a result "No-Qualify lending" in the last decade... so soon we forget...!!!

INSANITY... Doing More of the Same Expecting Diferent Results...!?!

The Federal Housing Finance Agency (FHFA) Office of Inspector General (OIG) stated in a White Paper report that Fannie Mae, Freddie Mac & FHA continue to face Billions of losses from Interest Rate fluctuations. The Government (We the People) face an estimated $1.3 Trillion in possible GSE portfolio risk.

The government has offered a 2-fold Strategy to mitigate interest rate risks; 1.) is to issue more mortgage-backed securities (MBS) to investors; 2.) The GSEs can also use derivatives, which act as a form of insurance and provide financial protection for when rates fluctuate.

Does this strategy sound just a little familiar to you... it certainly does to me...!!   Toxic distressed mortgage assets contributed in large measure to this economic recession...!!! Now, the best answer we have is doing more of the same expecting different results... INSANITY...!!!

Is the Housing Recovery Sustainable...???

Is the evidence of the housing recovery truly reflective of a housing market strengthening; when the economy is still struggling to crawl out of slow growth and low employment numbers? Even with a number of factors showing positive trends is the Recovery Sustainable...???

A Fat Boy in Florence...??

 

While hanging out of the top of a double decker tour bus in Florence, Italy I quickly took this photograph of a Fat Boy parked along a busy side street. It was the first and only Harley Davidson we saw during our Italy vacation. Not one from Venice to Rome, Florence to Verona, Lecce to Napoli, and Sorrento to Capri.

  

"Homeowners Bill of Rights" Vs. "Foreclosures"

"California Homeowners Bill of Rights" is the reason foreclosures are down in California. As lenders make the switch from non-judicial to judicial; foreclosures will go down for the first half of the year but then will accelerate. The lack of Inventory will be a concern throughout the first half of 2013.

Re/Max All-Pro Strikes Again...!

Another Short Sale Approval...!!!

 Lancaster, CA - Re/Max All-Pro

  TEAM ShortSale We Get Approvals... YOU Get Paid...!

 

"Then you will know the truth, and the truth will set you free.”

Another Short Sale Closed...!

Chino, CA - Walton Realty/Rowland Heights

TEAM Short Sale - We Get Approvals... YOU Get Paid...!

 

I think it is just terrible and disgusting how everyone has treated
Lance Armstrong, especially after what he achieved winning 7 Tour de France races on drugs.  When I was on drugs, I couldn't even find my bike..! I'mjustsayin'

Deal Breakers… How to Avoid Them & Close the Escrow…!

When a listing agent receives a purchase offer for one of their short sale listings, they need to review it very carefully and attempt to call out the deal breakers..!

 

Recently I have been surprised by some agents that were not aware of the various fees& closing costs that their short sale lenders will not pay; here’s how to avoid these surprises…

 

 

First, once you recognize a possible deal breaker, discuss it with the seller’s as well as the buyer’s agent. After all, you do not want to spend 6-12 weeks on short sale negotiations only to learn that the buyer will not move forward because you didn’t deal with a "deal breaker" at the beginning of the transaction.Here are some (but not all) of the possible deal breakers that the agent may see in the purchase contract:

Pest Control. Short sale lenders often approve pest control inspections, reports and repairs. However, sometimes they only approve a portion of that amount (or sometimes nothing).
Home Warranty. California is big on home warranties in their purchase contracts. Most banks do not approve home warranty as part of the short sale.
Buyer’s Closing Costs. It seems to be coming increasingly more common for buyers (especially those seeking FHA financing) to request closing cost concessions. This is another item that may or may not be approved by the short sale lender.
Homeowner’s Association. HOA dues transfer and document fees may be paid for by the lender. Often outstanding HOA dues may not be covered in full.
Local City Inspections & Repairs. Often required by local municipalities; most lenders will not pay these fees.

So, what happens if the buyer is requesting some of these items on the short sale purchase contract? Since there is likely no way of knowing whether these items will be approved by the short sale lender until much later in the transaction, it would be ideal to clarify in an addendum or a counter offer that approval of these items by the bank is not a contingency of sale. This way, if the bank does not approve the home warranty or the buyer’s closing costs, the deal can go on. “I’mjustsayin’ TEAM ShortSale”

Housing Inventory Still on the Decline...!

Home sales continued to drop in December, the National Association of Realtors reported on Tuesday, but still stood nearly 13% above the levels of one year ago. Supply & Demand is affecting the continued rise in prices while inventory is still on the slide.

Six Top Reasons Inventory is Declining:

1. Homeowners are Underwater
2. No Equity to "Trade Up"
3. Everyone Wants to Buy at the Bottom... Few Want to Sell
4. Investors  are in a Feeding Frenzy
5. Banks Slow to Foreclose
6. Builders Putting Up Fewer Homes    

Home Prices Up 9.7%

As we begin to thaw out from winter January shows home price index (HPI) rose nearly 10 percent year-over-year. The Market is poised for a Strong Spring Season ...!!!

Man: A Woman's Best Friend...!

 

 

Man is a woman's best friend…

He will reassure her when she feels insecure and comfort her after a bad day.

He will inspire her to do things she never thought she could do; to live without fear and forget regret.

He will enable her to express her deepest emotions and give in to her most intimate desires.

He will make sure she always feels that she's the most beautiful woman in the room and will enable her to be confident, sexy, seductive, and invincible.

 

 

No wait...... sorry....... I'm thinking of wine. It’s wine that does all that…!!!

 

 

5th Year Anniversary Celebration...!!!

March, 2013 Crossroads Escrow celebrates our 5th Anniversary serving the Real Estate industry. We've been a part of  this community for over 40-years; we believe we have contributed to the success of our clients, friends and family in the pursuit of realizing their dreams in real estate ownership.

 

Thank you all for supporting us over the years.  

Foreclosures rise 10.5% in January...!

Although foreclosures rose 10.5% in January, not to fear... it's not a trend... Fannie Mae and Freddie Mac froze foreclosures from December 19th through January 2nd; the market is stabilizing and should continue to look better thru 2014.