Posts from — October 2009

Can I short sell a property that has a tax lien against it?

Yes, you can!

The IRS is probably not going to stop you from selling a property due to a tax lien. There is a very slim chance that they may make you pay it off as a condition of the sale but probably not. Other liens, such as mechanic liens or that pool guy that you never paid may hold up a sale but chances are the IRS will allow the sale to go through.

This does NOT relieve you from your lien with them however and THEY WILL most definitely pursue you for it.

Forget those guys on TV that say they’ll settle your IRS liens, go see a local attorney and see what you can do. There ARE options!

Great 1 bedroom condo at San Simeon for sale — Short Sale & a steal at this price!! Built-in tenant!!

Since I work mostly with Arizona Short Sale homes I don’t handle loan modifications however I am often called “after-the-fact” to try and clean up a loan mod mess.

There are many loan mod scam companies out there trying to make a quick buck but this isn’t what this post is about.  Instead, it’s about trying to deal with the lenders and what they consider a loan modification.

When a homeowner asks for a loan modification here is what they are really probably wanting, in order of importance:

1. Principal reduction
2. Lower interest rate fixed for long term
3. Lower interest rate temporarily

Principal reductions seem to be quite rare. From what I see, only about 1% of all homeowners actually get a principal reduction. This means that the bank forgives a portion of your debt and your new payment is based on your new outstanding balance.

For instance, If you have a loan for $500,000 with a current payment of about $3000.00 per month and ask for a loan modification and they do a principal reduction to $400,000 then your new payment may be $2400.00 per month and your new outstanding balance is just $400,000.

Lower interest rates for long term — This is another good scenario, if you can get it. Your current rate is redone as well as the terms of your loan. If you had an ARM reset or have one coming up you may be able to secure a long-term loan at a lower interest rate.

Lower interest rate temporarily — These types of scenarios seem to be what most lenders are doing. They are lowering your interest rate to a certain percent for the first year, it then progressively goes up a certain percent each year thereafter until the 3rd or 4th year where it is at the same percent it is now.

Unfortunately lenders are not doing a very good job helping consumers complete these loan modifications. Really long hold times (sometimes over an hour!), being bounced around from person to person, getting different answers every time you call, asking to provide documents you’ve already sent 5 times, etc. are all troubles people experience.

If you are planning to attempt a loan modification then the best advice I can give you is complete all the paperwork correctly, send it in & follow up to make sure it was received, and then call them & continue to follow up, follow up, follow up. Your loan modification is not as important to anyone at your lender as it is to you so take the initiative and keep moving it forward!

If you are having problems getting a loan modification approved or have gotten one approved I’d love to hear about your experiences so please call me at 480-241-4406 or send me an email at Sean@AzHomeHelp.com.

If a loan modification doesn’t work or if you feel a short sale may be a better option for you please feel free to visit our Arizona short sale website at http://www.AzHomeHelp.com or call us at 480-241-4406 and we’ll be happy to help you move forward with a short sale.

Wonderful Cave Creek Home for sale in Tatum Ranch!! Another Arizona Short Sale so HURRY, these go quick!!!

The $8000 tax credit does more than help first-time homebuyers get into a home. It stimulates the economy as well and not just because of increased home sales.

Why?

Look at it this way — A first time homebuyer buys a home and receives a tax credit. They use the credit to hire a painter to custom paint a few rooms, they buy a new fridge, and they do a little landscaping to the backyard.

A landscaper is now hired to do the yard — he in turn buys grass, a tree or two, maybe a BBQ grill, etc. The painter that’s hired buys paint & brushes. The new refrigerator is bought from a local Home Depot. The painter, landscaper, & homeowner all pay sales tax on their purchases. The painter, landscaper, and the appliance salesman all pay taxes on the income they receive from their services.

This tax credit for just this homebuyer has resulted in more jobs, more retail sales, and tax revenue via sales tax & income tax that makes it’s way back to the government.

Multiply that by tens of thousands of people taking advantage of the tax credit and you can now see why it’s in everyone’s best interest to keep this credit alive, buying more property, and stimulating our stagnant economy.