Posts from — September 2009

New Surprise short sale — Needs carpet and paint! Great for an investor!

We SELL short sales! Yes, we list ‘em and we sell ‘em!

In the last month we have sold two properties the first day on the market, two properties in the first week, and 4 properties in the first 30 days.  These aren’t all our sales but some of the ones we are really proud of!!

In 2009 we have sold every single short sale we have listed within the first 60 days on the market!

Why? I’ll give you the top few reasons…

One, because we know how to sell properties in this market!

Two, because we heavily market our properties. You’ll find our homes on over 30 websites, on blogs (such as this one you’re reading now that gets over 5,000 visitors per month!), on flyers, emails, videos, everywhere!

Three, because when buyer’s agents call us we can intelligently answer their questions about your short sale!! A good buyer’s agent knows the right questions to ask to make sure their clients are taken care of. And we have the answers!

Four, because we can answer your short sale questions! Call a few other real estate agents then call us! We’ll give you the short sale answers that you need and current information about what banks are requiring for approvals, how much your home is worth in a short sale situation, referrals for other resources such as CPA’s & attorneys, and more!

Five, because we answer the phone, we call people back the same day, and we answer our emails quickly!!! We’re here to help so don’t be shy! Give us a call from 8am – 8pm seven days a week at (480) 241-4406 and we’ll be glad to walk you through your options!

Or visit our Arizona Short Sale website at http://www.AzHomeHelp.com for 24 hour information about Arizona short sales!

How do you prove insolvency to the IRS after a short sale?

I asked this question to multiple CPA’s and accounting firms and the general consensus seems to be the same.

After a short sale your previous lender will issue you a 1099-C , also known as a Cancellation of Debt 1099.  If your short sale falls under the Mortgage Debt Relief Act of 2007 & the Economic Stabilization Act of 2008, which many primary residences do, then it’s simply a matter of notifying the IRS of that.

If it was a investment property or otherwise classified as taxable income then the 1099 needs to be offset on your taxes.  If your liabilities total more than your assets then you can be considered “insolvent” and this may exempt you from paying taxes on the forgiven debt amount.

Now, the IRS is entitled to ask for documentation for all of this and if they do then as long as you can provide them with it then they should be happy.

Don’t try to do your taxes yourself during the year you do a short sale.  It just isn’t worth making a huge mistake and there are many CPA’s out there who will be happy to help you and the cost really isn’t all that much.  I have some good Arizona short sale resources such as accounting & CPA firms that specialize in real estate deals  if you need them.

Another Scottsdale short sale home that we sold the first day on the market!!

Is it smart to buy a short sale??  It certainly can be!

Some buyers (and buyer’s agents) shy away from short sales and not every short sale is a good opportunity.  As a buyer, unfortunately you can be at the mercy of the selling agent which is why it’s important that your agent knows what he or she is doing.  By asking the listing agent the right questions they can find out a great deal about the selling agent’s short sale experience, the bank they are dealing with, and your chances of getting the house.

Some banks are easier to work with (Wells Fargo, GMAC, & Flagstar for instance) and others can be nightmares (Chase, Countrywide, BOA).  Even nightmare banks can be dealt with and deals can be closed but for someone inexperienced in short sales the deals will usually fall through.

Find out what banks the seller owes money to on the property you are interested in as well as how the seller’s agent negotiates the file.  Do they do it themselves?  If so, how often do they contact the bank?  Do they have a full short sale package?  Has the process been started?  Has a BPO been ordered?  etc.

If the agent doesn’t negotiate the short sale themselves be very careful.  3rd party processing companies can be just as much of a nightmare as some banks and don’t expect them to really care whether the deal closes or not!  Also, some attorney negotiating services can be terrible as well!  Especially when their main focus it to try and get the seller to eventually just file bankruptcy.  Yes, believe it or not some attorneys just want money!

I’m not saying that all processing companies or short sale negotiation attorneys are bad news but do your homework.   Ask questions.  It’s your money, it’s going to be your property (hopefully!) so do your due diligence on all parties involved.  If it doesn’t look good, just move on.  There are thousands of homes on the market and believe me there will be thousands more over the next year or two.

Not all short sales are great deals but by learning as much as you can about who you are about to spend the next 2-3 months dealing with you can increase your chances of finding that perfect home at a great price!

We have lots of Arizona short sale homes for sale on our website.  When you buy an Arizona short sale from us you know what you’re getting and a good idea of when you’re getting it!  To short sell your Arizona home or to buy an Arizona short sale property visit us at http://www.AzHomeHelp.com or give me a call at (480) 241-4406.