Short Sale and Bankruptcy

What about short sale and bankruptcy? Why do I need to do a short sale if I filed bankruptcy? Answer: A bankruptcy only removes the homeowner from the liability (the repayment of the loan), not the lien (on the title of the property). If you have filed for bankruptcy, a short sale will still need […]

Principal Reduction Mortgage and Taxes

Do I get 1099 if I get a principal reduction from my mortgage company?   Answer: Yes. This is called cancellation of debt and you will almost certainly get a 1099-c. Please check with your accountant or tax expert on the exact consequences.

Deed in lieu vs Foreclosure?

What is the difference between a deed in lieu and foreclosure?   Answer: A deed in lieu of foreclosure (also known as a deed in lieu) still results in you having to leave your home. However, you’ll technically avoid having “foreclosure” on your credit report and you’ll avoid being evicted from your home. What is […]

HAFA Short Sale Rules, Program Extended to Dec 31, 2013

HAFA Short Sale Guidelines Home Affordable Foreclosure Alternatives (HAFA) Short Sale Update: HAFA Supplemental Directive 12-02, effective June 1, 2012, impacts short sales with loans from non-government-sponsored enterprises in which the homeowner is eligible for the HAFA program. Key enhancements include: Time frame extended: The program has been extended to Dec. 31, 2013. The HAFA […]

Bank of America Deficiency Judgement, New Policy on Second Mortgages

Bank of America announces changes to deficiency judgements on short sales with a second mortgage. As part of the settlement with the Department of Justice, Bank of America’s policy on pursuing deficiency judgments for second mortgages now includes a waiver of their right to pursue a deficiency if: The short sale was initiated on or […]

Cash for Keys and Taxes

Q: Do I get a 1099 for any Cash for Keys incentives? Answer: You will receive a 1099 tax form for any Cash for Keys incentives issued to you.   Example: Here’s Bank of America’s disclosure on the tax implications of “Cash for Keys” incentives: “The amount of any deficiency and relocation assistance will be […]

When does the Mortgage Forgiveness Debt Relief Act expire?

When does the Mortgage Forgiveness Debt Relief Act expire? A: The Mortgage Forgiveness Debt Relief Act Expires 12/31/2012 Download the free guide. Here’s another post I wrote on this topic: https://michaelsteam.com/short-sale-1099-and-the-mortgage-forgiveness-debt-relief-act/

What is a HAFA short sale?

What is a HAFA short sale? A: HAFA stands for Home Affordable Foreclosure Alternative Program. HAFA is a program of the Department of the Treasury & Housing and Urban Development which is administered through your participating lender. The benefits of applying for a HAFA short sale are: a.) Possible cash incentive, up to $3,000; b.) […]

Short Sale 1099 and the Mortgage Forgiveness Debt Relief Act

Do I get a 1099 if I do a short sale? A: Almost certainly, yes, you will get a 1099 if you complete a short sale. The Mortgage Forgiveness Debt Relief Act Expires 12/31/2012 In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to […]

Bank of America Cash for Keys Program Nevada

Bank of America Cash for Keys Program, Nevada   LIMITED TIME OFFER On May 15, 2012, Bank of America announced a new short sale Relocation Assistance Program: Homeowners are eligible to receive $2,500 to $30,000 in relocation assistance. For a limited time, Bank of America is offering enhanced relocation assistance payments in which qualified homeowners […]