Welcome to my second Real Estate Trends Newsletter. Many of you sent me an email or text message thanking me for the information that I wrote on the first Newsletter. I was ecstatic when I got those messages so I will definitely be doing this newsletter as long as I am in Real Estate. The trends I will be discussing are Mortgage Forgiveness Act, Real Estate Investments, Seminars and a Finders Fee. Enjoy.
Mortgage Forgiveness Debt Relief
Both the state and federal governments are giving homeowners a free pass on Short Sales and Foreclosures. What I mean by that is that when a bank loses money on a Short Sale or Foreclosure, they give the owner a 1099. The money that the bank loses is called "debt relief income" and is a gain for the owner. So, by law, if you lose your house to a Foreclosure and the bank loses $100k, you have to show an extra $100k in income for the year. That is probaby enough to push you into the next tax bracket and cost you thousands in taxes.
Fortunately, in 2007, Bush signed a law exempting homeowners from paying this tax on their primary residence (with certain conditions). Arnold signed a similar state law and Obama extended the federal exemption. However, both the federal and state exemption expire at the end of this year. So, if you close a Short Sale or Foreclosure by Decemeber 31, 2012, you might pay no taxes, but close after January 1, 2013 and you could pay tax on the full amount the bank loses. If you have any questions about Mortgage Forgiveness, please let me know.
The Year of the Investor
30% of homes last year were bought by investors and I have a feeling that percentage will go up. Why you ask??? It is because rent is up. I have an investor who bought a 3 bedroom house in Escondido last year for $225,000. He put a 25% downpayment so his mortgage, taxes and insurance is about $1,185 per month and he is renting out the home for $1,600. That is a very nice cash flow that you can put towards the mortgage principle to pay off the home faster. Now we are looking for his 3rd investment and he is only 26 years old. If you or you know someone who is interested in Real Estate Investments, please let me know.
Underwater Homeowners Options Seminar
Many homeowners are underwater and they don't know their options so I decided to do a Seminar covering their options. Some of the options are Loan Modification, Government programs like HAFA Short Sale and HARP 2.0, Short Refinance, Strategic Short Sale, relocation assistance and more. If you know anyone who would be interested in this seminar, please have them visit www.HomeownersOptionsSeminar.com
for more information and to register.
$300 Finders Fee
With the number of homes for sale in San Diego County being LOW, we need more listings for my buyers. So I am offering you a $300 finders fee if you refer me to someone who is interested in selling their home. It can be a Traditional Sale or Short Sale, either way you will get $300. If you refer me to 2 sellers, you will get $600 and so on. You will get the finders fee when the listing agreement is executed with me. Deal?!? If you have any questions, please let me know.
Thanks for reading and as you know, I love referrals so if you know anyone interested in buying or selling, please refer me.