Duncan Real Estate Services

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 10 Aug 2012 03:51:07 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Real estate investing is always good and sometimes it’s red hot. When it’s hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education.

It’s startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.

Here’s a quick plan that will enable anyone to begin building financial independence.

There are basically four steps to investing in single family homes:

1. Buy homes below full market value. Yes, people really do sell homes for less than the home’s full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit.

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer.

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales.

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won’t walk door to door for three or four hours per week. OK, there are other ways.

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they’ve received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site.

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact.

3. After you’ve found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars.

4. You make your profit when you buy! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.

There you have four steps that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 03 Aug 2012 01:28:33 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Welcome to the New Short Sale Escalation Web Tool

As a valued partner, you are part of a small group of real estate agents who are being granted access to a new Bank of America web tool that will allow you to escalate a short sale issue when necessary.

Keep in mind, that there are specific guidelines for a short sale escalation, as well as steps you should take before a submission:

A Guide for Agents

– November 2011

Short Sale Escalation Guidelines

THIS INFORMATION IS NOT INTENDED OR AUTHORIZED FOR CONSUMER DISTRIBUTION

• To Consider BEFORE Escalating

• Several factors contribute to the timeframe of a short sale.

Bank of America uses the Equator short sale processing

system. Equator is a task driven system and each task has a

specific deadline.

• Agents must educate themselves on the process and review

the tasks and messaging in the system to assess the progress

of the transaction.

• Before submitting an escalation, agents need to ensure they

have exhausted the following resources:

– Contact the assigned Short Sale Specialist through a message in

the Short Sale Processing System (Equator) and allow at least

two business days for a reply

– Contact the team lead through the Short Sale Processing System

(Equator) and allow at least two business days for a reply

– Contact Bank of America’s Short Sale Customer Care line at:

1.866.880.1232 (Monday to Friday 8:00 am – 10:00 pm Eastern

and Saturday 9:00 am – 5:30 pm Eastern)

2Short Sale Escalation Guidelines

• To Consider BEFORE Escalating

Agents should review and understand the following guidelines

before accessing the escalation web tool and submitting an

escalation:

• Transaction specific information will only be discussed with

homeowners or their authorized third parties. Due to privacy reasons

Bank of America can only provide loan specific information to

homeowners or authorized third parties (where proper third party

authorization documentation has been reviewed and approved by Bank

of America). If you are a buyer’s agent we will acknowledge your

escalation but will reach out directly to the listing agent.

• All escalations must be submitted through the designated escalation

web tool. Once an escalation is submitted, please avoid contacting

Bank of America Mortgage Loan Officers and other associates about the

case to prevent duplicate efforts that may slow down the response and

the overall process.

• To access the escalation web tool a username and password will be

required. An email with a link to the web tool and registration

instructions will be sent to all agents who have been authorized to use

the new tool.

Only a very small portion of short sale files should require an escalation at any given

point in the process. Agents must carefully assess the situation and determine if an

escalation is needed:

A Short Sale Escalation IS A Short Sale Escalation IS NOT

• An avenue to resolve one or more of the following issues

related to the short sale process for a specific property:

• No response to attempts to contact the Short Sale Specialist

and Specialist’s team lead (allow for two business days to

receive a response after attempt contact)

• A decision on an offer (approval / rejection) has not been

communicated in 45 days

• The buyer is going to walk and a decision on an offer (approval /

rejection) has not been made within the 45 day time frame

• If settlement statement has not been approved at closing

• An avenue to get answers to questions that have not been

answered by the assigned Short Sale Specialist or Team Lead

• A way to get a status update

• A way to expedite a short sale

• A guaranteed method to get a short

sale approved

• A way to get general questions about

the deal or the short sale process

answered

• A way to bypass working with your

assigned Short Sale Specialist

• A forum to obtain general assistance in

using EquatorShort Sale Escalation Guidelines

• What to expect AFTER Escalating

• Within two business days of submitting your escalation, you will be

contacted by a Bank of America representative to acknowledge that the

escalation was received and outline next steps.

• The actual resolution of an escalation can take up to 30 days,

depending on the issue, as it may require additional research and

response from other partners (investor, MI company, etc).

• If you have submitted escalations in the past and have interacted with

a Bank of America escalation representative, please do not contact the

same representative directly if a new escalation arises. Agents are

expected to submit new escalations using the online form only.

5Short Sale Escalation Guidelines

• Additional Information and Education on the Short Sale Process

• Agent Resource Center:

bankofamerica.com/realestateagent

• Equator: www.equator.com

• Bank of America Real Estate Center:

bankofamerica.com/realestatecenter

• Bank of America Home Loan Assistance:

bankofamerica.com/homeloanhelp

• Dedicated Customer Care: 1.866.880.1232 (Monday to Friday

8:00 am – 10:00 pm Eastern and Saturday 9:00 am – 5:30pm Eastern)

To use the escalation tool, you will need to access http://realestateagent.bankofamerica.com/shortsaleescalation and log in with your username and password. A quick reference guide provides the login instructions for your first visit to the Short Sale Escalation Tool.

Only certain pre-selected and pre-approved agents will be authorized to use this tool. They will be informed by a welcome email such as this one.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Mon, 30 Jul 2012 20:50:00 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Short Sales 2012

Due to a confluence of several factors, experts predict that there will likely be a significant uptick in the number of short sales for distressed properties throughout the rest of the year, with a spike coming over the next few months.

The market for short sales — that is, underwater homeowners selling their houses despite owing more on the mortgage than the property is worth — is expected to hit its all-time peak in 2012, largely because bankers are now realizing that this option is more profitable than foreclosures, according to a report from Reuters. For instance, many are forgiving the difference between the sale price and the remaining balance on the mortgage, which consumers still owed to the lender in the past.

This option is also being pushed by the Obama administration and has led many banks to start pushing more short sales through specialized programs, the report said. A loan amount forgiven used to be counted as taxable income under federal law, but new government initiatives no longer include that.

Rush on Short Sales

“We’re seeing a rush already,” Daren Blomquist, of the foreclosure and distressed property monitoring firm RealtyTrac, told the news agency. “There was a big increase in the first quarter and we’re expecting that to continue.”

In fact, data from RealtyTrac shows that during the first quarter of this year alone, the number of short sales — 109,521 — was up 25 percent on an annual basis, and the highest level observed in three years, the report said. In some cases, the desire to help move on from underwater, distressed properties is so strong that banks have even begun to offer underwater borrowers large sums of money if they agree to a short sale for their distressed property.

At the same time, as short sales are ongoing, many Americans are also snatching up other distressed properties that have been foreclosed upon. These properties are typically available at significantly reduced prices, which are made even greater bargains by housing affordability hovering near all-time lows. Interest rates on 30-year fixed-rate mortgages have been below 4 percent for nearly all of 2012. However, property values are also beginning to rise in many parts of the country, and therefore those who are considering purchasing homes are encouraged to do so soon.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Summer of Short Sales | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Thu, 26 Jul 2012 18:00:25 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Coming soon to a neighborhood near you: A late-summer wave of short sales, as homeowners, mortgage bankers and potential buyers all race to settlement on bargain-priced homes that are worth less than the mortgages written on them.

“We’re seeing a rush already,” said Daren Blomquist of Realtytrac, a firm that monitors real estate foreclosures and distressed sales. “There was a big increase in the first quarter and we’re expecting that to continue.”

A short sale occurs when the lender agrees to let the property be sold for less than the amount owed on the mortgage.

2012 may be the year the short sale market peaks, because of a number of factors. Bankers, pressed by the Obama administration and their own bottom lines, realize they are better off accepting partial payment on a mortgage than taking a home in foreclosure, said Blomquist. Some have created expedited short sales procedures in which they will pre-approve a home for a distress sale and even pay the seller as much as $45,000 to get the deal done.

Sellers with one eye on the clock realize that they could lose a valuable tax break if they fail to complete their short sale by year end. And some sellers — who have been hanging on “by tooth and nail” to homes worth less than their mortgages for years, according to Elizabeth Weintraub, a Sacramento, California, real estate agent who specializes in short sales — have decided now is the time.

“It seems to be doubling every year, but 2012 is particularly busy,” she said.

In the first quarter of 2012, some 109,521 properties were sold in pre-foreclosure — a proxy for short sales, according to Realtytrac. That was a 25 percent increase from the same quarter the previous year and a three-year high, Blomquist said.

So it seems like this is the time to make a move. Here is some advice for sellers and bargain hunters.

– Sellers should start with their banks. Several lenders including JPMorgan Chase & Co and Bank of America Corp now have expedited short sales programs in which they pre-qualify sellers and their homes for short sales at agreed-upon prices. That dramatically cuts down on the amount of time it takes to push through all the paperwork that a short sale requires. In addition, these big banks are cherry-picking some troubled properties for extra owner incentives: Your bank may actually pay you as much as $45,000 to agree to sell your distressed home. Weintraub said she has one client who was offered $25,000 to sell a $95,000 house.

– Sellers should start soon to get that tax break. Lenders are also routinely wiping away any extra debt left after the short sale. So if you owe $200,000 on your house, and you sell it for $150,000, the bank would theoretically be able to come after you for the additional $50,000. They are forgiving that, and it is that forgiven debt that is normally subject to income tax. It will not be, under a special provision that expires at the end of this year.

“If you can, you close this year,” Weintraub said she is telling her clients. That means would-be sellers should start soon, if they have not already — it can easily take three or four months to close a short sale once you have a buyer.

– Sellers should realize that “hardship” is a relative term. In order for a lender to approve a short sale, the seller is supposed to make the case that financial hardship will keep him or her from paying off the loan. But in their rush to get these deals done, banks are considering a wider array of situations to be hardships. An impending retirement or job change can be a “hardship” if the rest of the deal is right. “It’s a great opportunity,” says Blomquist.

– Buyers should look for deals but not expect anything amazing. Bankers and real estate investors have caught on to the fact that these distressed houses are a good deal, so there is competition. They are often a better buy than foreclosures, because short-sold homes typically are owner-occupied, well cared-for and come with guarantees. Foreclosures, on the other hand, may have been stripped of appliances (and walls) by displaced borrowers on their way out. Weintraub tells people to expect to pay market price for a short sale.

But that market price still could be good for the buyer. “The average price of these properties is $175,000 — that’s still 20 percent below the average price of properties not in distress,” said Blomquist.

– Buyers should go for long locks on their mortgage rates. It is a long trip from finding an appealing property on a site like Realtytrac to actually buying the property. If you have a buyer’s agent, you can also ask your agent for a list of properties that are in distress. In the meantime, you can try to line up a mortgage at today’s near-record-low interest rates. Don’t even think about the 30-day locks; even 60 days may not be enough to get you through to closing. Buying a home that has been pre-approved through one of the banks’ accelerated programs can cut closing times down to as little as 10 days, said Weintraub.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Asset Protection | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Tue, 03 Jul 2012 21:22:08 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

The first 10 years of my real estate investing I ran my business as a sole proprietor because I really didn’t know any better. Luckily, I survived with only minimal damages, but there comes a point when it is time to assess the best legal structure to use for real estate investing.

If you ask 10 experts you are likely to get 10 different opinions. With that in mind, I’ll share my opinion and experience. Remember: free advice is always worth what you pay for it.

If you are a beginning investor, it’s probably best to not worry about asset protection until you actually have a few assets to protect. Why spend time and money setting up a business entity and creating tax reporting requirements unless you need to? It’s like buying full coverage auto insurance on a beat–up Gremlin…what’s the point?

Once you have assets and something to protect, then it’s time to set up your business structure. Question # 1: what is your net worth? Question # 2: do you have assets that are at risk? If the answer to either of those questions is, “Yes,” then you need to take the next step.

Assuming you want to set up an entity for wholesaling properties, the most popular are an LLC (Limited Liability Corporation) or a C Corporation. There is much debate about which one is better, but I prefer the C Corporation because the first $50,000 is taxed at 15% and you can have a kick-butt employee welfare plan to write off many expenses. With an LLC, the income is passed through. If you start making money, you’ll wish you could pay only 15% on some of it! Trust me on this one.

Why is the tax issue such a big deal?

Here’s a simplified example. If you make $100K personally you are taxed on the full amount (35%) and have $65,000 left. Anything you buy for yourself comes from after-tax dollars. However, with a C Corporation if you could make the same $100K on paper, but have $50K in allowable expenses that you can write off. So you get taxed on that $50K at 15% and only have to pay $7,500 in taxes compared to $35,000 on your personal income.

What type of expenses can you write off in a C Corporation? It depends on how your Company is structured (see your accountant/attorney for details), but you can often write off basic expenses of things like a bed or even a swimming pool. You’re thinking, “No way!” Let me explain how it’s done. If you have an employee welfare plan that covers your medical expenses and your doctor gives you a prescription for aqua therapy, it’s possible to write off the cost of the swimming pool. Yes, it’s crazy, but I don’t make the laws. Another more common example is a prescription for a new bed if you have a bad back. I have a “Sleep Number” bed myself, just like Paul Harvey J.

A very wealthy man once told me “It’s very hard for a C Corporation to make any money!” What he was trying to illustrate was that C Corporations can expense pretty much everything and look like there is little or no profit. You still can buy the same stuff, but you are taxed less if you structure things correctly.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Real Estate Success | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Mon, 02 Jul 2012 22:53:12 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

With a relatively increase of the everyday commodities, more and more people are finding ways how to earn additional sources of income so as to compensate their expenses. That’s why most people who look for alternative ventures resort to real estate business.

However, even if real estate business appears to be lucrative to many, it still needs a lot of effort and skills to survive in the industry. So, for those who want to succeed in real estates business, here are some tips to ponder:

1. Set practical and sensible objectives.

Just like any venture, the key to a successful real estate business lies beneath a sound and sensible target. This will serve as the guiding principle of those who wish to make it to the top. Through these objectives, people who are involved in real estates business can focus more on areas that need concern like the market, clients, and strategies that will make their business profitable.

2. Choose the right real estate strategy.

The key to a successful real estate business is to come up with a certain strategy that will supplement the objectives stated on the entrepreneurs’ business plan. This strategy will also provide the right moves to take based on the kind of profit the real estate entrepreneur wants to achieve like an express cash or wealth establishment.

3. Entrepreneurs should acquire the characteristics of an ideal real estate agent.

In order to succeed, people involved in this kind of business should acquire the characteristics of an ideal real estate agent. He or she should be adept in finding the motivated seller, determine the value of properties, and knows how to negotiate with their clients.

4. It’s a must to know the laws.

Part of being successful in real estate business is to know the existing laws of the state such as tax laws. Such that, if a real estate businessman does not know the laws, he or she may end up losing a lot money or worst end up in jail.

5. It is important to hire a reliable accountant.

This is extremely important to almost any type of business. This is, in reality, significant in order to succeed in real estate business because the transactions involves money, and one of the person who is skilled to analyze and interpret monetary information is a certified accountant. Through the help of an accountant, people behind the real estate business will be able to track the ebb and flow of the market.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Personal Safety | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Fri, 29 Jun 2012 18:58:05 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

A major concern for realtors is personal safety. Many times the realtor is working alone in showing a property, having an open house, or manning the model house in a new subdivision. Some personal safety issues should include:

On the first meeting of a client, have them meet you at the office. Get as much personal information as possible. A copy of the driver’s license is a good start not only for safety, but also for the client database.

If you have a strange feeling about the client, don’t show property by yourself. Ask a co-worker to go with you; at worst you might have to split the commission. If you are manning an open house and you feel that you might be in danger, leave the property and call for help.

Always drive your own car to the property as this might be the only means of escape. On the way make notes on the type of car, color, and license plate number and call the office with this information. Once at the property make sure your car is not blocked and you have an easy escape (no backing-up).

As you are showing the property, always have the client lead you; this allows the property to present itself and keeps the client where you can see them. Make sure they sign-in on the registry and if the office does not have the information on the client, get the information to them. Your office will know you are with a client at this time.

Keep your keys and cell phone close and easy to access. If need be, keys can be effective weapon of surprise. If you have a handbag, keep it with you at all times or locked in the trunk of your car. Know the property, not only do you look more professional, but safer; your client does not know all of the exits as well as you should.

Take a few self defense classes, as a few minutes head start out of the property means the difference in a safe escape and being trapped. Take the first chance for escape and don’t try to talk your way out; keep your advantage. The more time you spend in a dangerous situation means a diminished chance of a safe exit.

Let the client see that you have contacted your office and the office knows who you are with. It is also a good idea to have a secret code for trouble such as “Pick up dog food” when you don’t have a dog. It is also a good idea to set your phone to vibrate as your client will not know if you are calling or if you are receiving a phone call.

If there is an emergency your office can play a vital role. Make sure they have the make of your car, its color, and license plate. If you are using a different car that day, make sure they have its description as well.

Make sure your office has your schedule for the day and that you check in on each appointment. If you are hosting an open house, make sure you have a registry book for clients to sign in. See if you can also include the client’s car description. Tell the client it is just in case they get a parking ticket and you want to document the reason for parking there or some other reason.

Many of these points may already in practice for the profession. Look to these procedures as also a safety concern. These safety tips should become second nature with little thought to be truly effective. Being an agent means sometimes you will work alone. With today’s cell phones and e-mail capabilities and some careful thought, you will be safer and will be in contact with help quicker.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Debt Forgiveness Act | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Tue, 26 Jun 2012 21:25:11 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Since 2007, homeowners whose banks have forgiven unpaid mortgage debt after a short sale, principal reduction or foreclosure have not had to count that money as income on their tax returns.

It’s meant savings of tens of thousands of dollars on the so-called “phantom income” depending on the amount of debt canceled and a person’s tax bracket.

But the Mortgage Forgiveness Debt Relief Act of 2007 will sunset Dec. 31.

With just six months before the scheduled expiration, accountants and Realtors are urging homeowners considering a short sale to put their properties on the market now so they can sell before year’s end.

A short sale is where the lender agrees to sell a property for less than what the homeowner owes on the mortgage. Although banks are getting better at processing short sales, finalizing a contract can still take months.

“People are unaware that they could get a huge whack from this,” said real estate attorney Clifford Hertz of Broad and Cassel in West Pam Beach about the tax break expiration. “If they know what’s coming, they can make the right business decision.”

That’s just what Palm Beach Gardens homeowner Jeff Shingledecker did.

He put his home up for a short sale in April after researching the best exit strategy from his underwater mortgage. Within 24 hours of listing the home, he had a full price offer of $105,000 and is currently under contract.

Still, a successful sale will leave him with $118,000 in unpaid loan debt. If the bank forgives that balance, the money is taxable income. Considering Shingledecker’s tax bracket, he would owe about $29,500 in taxes on that canceled debt. Under the debt relief act, he won’t owe anything.

“This made the most sense,” Shingledecker said about his short sale decision. “I looked at all the angles and assuming everything goes as planned this is the best route.”

During the first quarter of this year, 6,649 short sales were completed in Palm Beach, Broward and Miami-Dade counties, according to the market research firm RealtyTrac. That was a nearly 55 percent increase from the same time in 2011.

Statewide, 15,949 short sales were conducted in the first quarter of the year, an 18 percent increase from the same time in 2011.

But not everyone can benefit from the debt relief act. It only covers forgiven debt on principal residences and up to $2 million, or $1 million if married but filing separately. The act also does not apply to second mortgages where the money was used for non-household expenses.

If a debt of $600 or more is forgiven, the lender is required to send homeowners a tax form 1099-C by Feb. 2 of each year. The form must state the amount of debt forgiven as well as the fair market value of any property given up through foreclosure or a short sale. Homeowners must report the forgiven debt on tax form 982.

There are other tax rules that can affect how homeowners benefit from the debt forgiveness act, but any relief for a homeowner right now is helpful, said Realtor Jared Dalto.

“Let’s face it, they did not have the money to pay the mortgage in the first place so what makes the IRS think a homeowner can pay taxes on $200,000?” said Dalto, a short sale specialist with the Palm Beach Group at Seawinds Realty.

Josh Angell, an investment adviser with Moore Ellrich and Neal P.A. in Palm Beach Gardens, said depending on how much debt is forgiven, a homeowner could be pushed into a higher tax bracket. That means they’d not only owe on the forgiven debt but also at a higher rate.
“It’s a very scary thing to think about when people are financially destitute,” said Jon Maddux, CEO of YouWalkAway.com, a company that advises homeowners on short sales and strategic defaults. “It can put people in a situation where they will most likely have to file bankruptcy. They’d be insolvent.”

In March, a bill was introduced in the U.S. House of Representatives to extend the Mortgage Debt Relief Act through the end of 2015.

Sponsored by Rep. Jim McDermott, D-Wash., the “Homeowners Tax Fairness Act,” would also exclude from taxable income money received for wrongful foreclosure through the $25 billion attorneys general settlement.

The settlement is expected to give homeowners between $1,500 and $2,000 if they had a wrongful foreclosure.

Jupiter resident Michael Schoenewolff, who hopes to benefit from the debt relief act this year, said he believes Congress will vote to extend the tax break.

Schoenewolff has a short sale contract on his home that would leave him with $95,000 in forgiven debt.

“The average person can’t handle another $100,000 in income to be taxed,” he said. “I think they have to vote to extend it in order to allow the housing market and economy to recover.”

Who’s affected?

People selling their homes through a short sale or who are in foreclosure may have the unpaid balance of their loan forgiven by the bank. If so, that debt would be considered taxable income. The Mortgage Forgiveness Debt Relief Act excludes that income from being taxed through Dec. 31, 2012.

What’s happening?

The debt relief act is scheduled to sunset at the end of this year. If no extension is granted, homeowners will have to pay taxes on any unpaid balance forgiven by a lender after a short sale, modification or foreclosure.

How does it change your sale?

If you are considering a short sale, you may want to put your home on the market now so a sale can close before the end of the year and qualify you to take advantage of the debt relief act before it expires.

What’s next?

A bill called the “Homeowners Tax Fairness Act” was filed in March that would extend the tax debt forgiveness program through 2015. It requires congressional approval.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Green Tip | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Mon, 25 Jun 2012 20:03:10 +0000

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

With oil and natural gas prices rocketing, stoking terror of long, cold and and expensive winters, a renewed interest in keeping heating costs under control has has been sparked. Homeowner’s have an ignited passion in understanding energy saving methods. If you’re in this boat, stuck in cold waters, here are some tips for energy saving tricks of the trade.

If you’re living in a home with a furnace that’s more than 20 years old, you may have already attempted the “buy a sweater” method of keeping warm. This is certainly one approach, but these days upgrading your home’s conditioning system is a much better option, and will bode well for you in the here and now, and in the long term, should you decide sell your home. More and more, homebuyers are looking for homes with energy efficient systems already in place. So, think of these upgrades as a long term investment in the resale value of your home, as well a cost efficient and green alternative to your current conditioning system.

Now, with that old choker of a furnace huffin’ and puffin’ away, guaranteed it’s not as efficient as it could be, no matter what fuel type it uses. The newer gas furnaces are mid-efficiency (78-82%) or high efficiency (89-96%). Although the higher efficiency products can cost up to $1000 more than the mid-efficiency products, extra costs will be re-couped in a couple years, as they will burn less fuel. And, you’ll be the greenest frog on the block, sending less harmful emissions out into the atmosphere. “It’s so easy being green”, murmured Kermit, once he upgraded his furnace.

With oil furnaces, there are again, much more efficient products on the market as of late. But, a oil furnace does need to partner with a good chimney, and so this may be an additional cost to keep in mind

Take note, it’s still the case that electric heat is more expensive than oil and gas, although a smart combination of central woodstove heat, supplemented by electric heat can be cost efficient.

Let it Flow: Change Your Filters!

Whether disposable or washable, all forced-air heating/cooling systems use filters. And, these filters need to be maintained and changed. Some filters require monthly changes while other last up to three months, and much depends on the conditions within your home. A dirty filter will restrict air flow and with clogged filters you’re blocking heat that would otherwise be keeping you toasty warm. Do yourself a favor and keep on top of the regular changing of your heat filters. This is a pretty easy way to boost your energy efficiency and cut costs.

Pump it up: Install a Heat Pump

Air source heat pumps are the most common and they are generally used with a back-up heating system. In terms of function a heat pump works by extracting heat from the outside and bringing it in, (in heat mode), and by removing heat from the inside of the house and releasing it outside. ( in cooling mode).

The king of heat pumps, though, are ground and watersource, or geothermal. And while the initial investment may be great, the saving will be substantial in the long run. These pumps will use 25-50% less energy than conventional conditioning systems.

At the end of the day, another simple method to help with soaring heat bills, is to keep an eye on the set temperature levels in your house, What is normally described as room temperature is around 68 Fahrenheit (20 degrees celsius). Of course, only you can decide where to set the dial. But, if you’d rather avoid the ” put on a sweater” method of winter energy conservation, you might consider investing in an improved conditioning system that’ll bring you warmth today, and will be a smart investment in the re-sale value of your home.

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

Kristin Duncan — Wed, 13 Jun 2012 17:31:21 +0000

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator

If you own real estate or are thinking of buying real estate then you better pay attention, because this could be the most important message you receive this year regarding real estate and your financial future.

The last five years have seen explosive growth in the real estate market and as a result many people believe that real estate is the safest investment you can make. Well, that is no longer true. Rapidly increasing real estate prices have caused the real estate market to be at price levels never before seen in history when adjusted for inflation! The growing number of people concerned about the real estate bubble means there are less available real estate buyers. Fewer buyers mean that prices are coming down.

On May 4, 2006, Federal Reserve Board Governor Susan Blies stated that “Housing has really sort of peaked”. This follows on the heels of the new Fed Chairman Ben Bernanke saying that he was concerned that the “softening” of the real estate market would hurt the economy. And former Fed Chairman Alan Greenspan previously described the real estate market as frothy. All of these top financial experts agree that there is already a viable downturn in the market, so clearly there is a need to know the reasons behind this change.

3 of the top 9 reasons that the real estate bubble will burst include:
1. Interest rates are rising – foreclosures are up 72%!
2. First time homebuyers are priced out of the market – the real estate market is a pyramid and the base is crumbling
3. The psychology of the market has changed so that now people are afraid of the bubble bursting – the mania over real estate is over!

The first reason that the real estate bubble is bursting is rising interest rates. Under Alan Greenspan, interest rates were at historic lows from June 2003 to June 2004. These low interest rates allowed people to buy homes that were more expensive then what they could normally afford but at the same monthly cost, essentially creating “free money”. However, the time of low interest rates has ended as interest rates have been rising and will continue to rise further. Interest rates must rise to combat inflation, partly due to high gasoline and food costs. Higher interest rates make owning a home more expensive, thus driving existing home values down.

Higher interest rates are also affecting people who bought adjustable mortgages (ARMs). Adjustable mortgages have very low interest rates and low monthly payments for the first two to three years but afterwards the low interest rate disappears and the monthly mortgage payment jumps dramatically. As a result of adjustable mortgage rate resets, home foreclosures for the 1st quarter of 2006 are up 72% over the 1st quarter of 2005.

The foreclosure situation will only worsen as interest rates continue to rise and more adjustable mortgage payments are adjusted to a higher interest rate and higher mortgage payment. Moody’s stated that 25% of all outstanding mortgages are coming up for interest rate resets during 2006 and 2007. That is $2 trillion of U.S. mortgage debt! When the payments increase, it will be quite a hit to the pocketbook. A study done by one of the country’s largest title insurers concluded that 1.4 million households will face a payment jump of 50% or more once the introductory payment period is over.

The second reason that the real estate bubble is bursting is that new homebuyers are no longer able to buy homes due to high prices and higher interest rates. The real estate market is basically a pyramid scheme and as long as the number of buyers is growing everything is fine. As homes are bought by first time home buyers at the bottom of the pyramid, the new money for that $100,000.00 home goes all the way up the pyramid to the seller and buyer of a $1,000,000.00 home as people sell one home and buy a more expensive home. This double-edged sword of high real estate prices and higher interest rates has priced many new buyers out of the market, and now we are starting to feel the effects on the overall real estate market. Sales are slowing and inventories of homes available for sale are rising quickly. The latest report on the housing market showed new home sales fell 10.5% for February 2006. This is the largest one-month drop in nine years.

The third reason that the real estate bubble is bursting is that the psychology of the real estate market has changed. For the last five years the real estate market has risen dramatically and if you bought real estate you more than likely made money. This positive return for so many investors fueled the market higher as more people saw this and decided to also invest in real estate before they ‘missed out’.

The psychology of any bubble market, whether we are talking about the stock market or the real estate market is known as ‘herd mentality’, where everyone follows the herd. This herd mentality is at the heart of any bubble and it has happened numerous times in the past including during the US stock market bubble of the late 1990′s, the Japanese real estate bubble of the 1980′s, and even as far back as the US railroad bubble of the 1870′s. The herd mentality had completely taken over the real estate market until recently.

The bubble continues to rise as long as there is a “greater fool” to buy at a higher price. As there are less and less “greater fools” available or willing to buy homes, the mania disappears. When the hysteria passes, the excessive inventory that was built during the boom time causes prices to plummet. This is true for all three of the historical bubbles mentioned above and many other historical examples. Also of importance to note is that when all three of these historical bubbles burst the US was thrown into recession.

With the changing in mindset related to the real estate market, investors and speculators are getting scared that they will be left holding real estate that will lose money. As a result, not only are they buying less real estate, but they are simultaneously selling their investment properties as well. This is producing huge numbers of homes available for sale on the market at the same time that record new home construction floods the market. These two increasing supply forces, the increasing supply of existing homes for sale coupled with the increasing supply of new homes for sale will further exacerbate the problem and drive all real estate values down.

A recent survey showed that 7 out of 10 people think the real estate bubble will burst before April 2007. This change in the market psychology from ‘must own real estate at any cost’ to a healthy concern that real estate is overpriced is causing the end of the real estate market boom.

The aftershock of the bubble bursting will be enormous and it will affect the global economy tremendously. Billionaire investor George Soros has said that in 2007 the US will be in recession and I agree with him. I think we will be in a recession because as the real estate bubble bursts, jobs will be lost, Americans will no longer be able to cash out money from their homes, and the entire economy will slow down dramatically thus leading to recession.

In conclusion, the three reasons the real estate bubble is bursting are higher interest rates; first-time buyers being priced out of the market; and the psychology about the real estate market is changing. The recently published eBook “How To Prosper In The Changing Real Estate Market. Protect Yourself From The Bubble Now!” discusses these items in more detail. For more information visit

KRISTIN DUNCAN

CELL: #562-480-1465 EMAIL ADDRESS: Kristin@duncansrealestateservices.com

Click Here for reviews on www.google.com www.yahoo.com www.bing.com

Click Here for contact information:

[contact-form-7]

Market | Kristin Duncan | Short Sale Negotiation | Transaction Coordinator