Short Sales
Short Sales Vs Foreclosures Vs Traditional sales
December 8, 2011 by Financemyhome · Leave a Comment
We need to understand that while the current economy is really a “Tale Of Two Cities” in that some people have no idea we are in a recession whereas others are in deep pain, the real estate market as a whole is being impacted by distressed properties. Based on the current backlog of homes, it may be this way for some time. That being said, why are short sales being embraced by everyone as the most economical way to move markets forward? When you look at a comparison of the loss incurred by the lender, you will see that losses are generally worse with a foreclosure. Larger losses via lower sales prices ultimately impacts everyone who is buying, selling or refinancing. I have a report and flyer I’d like to share. Both provide you with opinions and resources so you can draw your own conclusions. Solving the housing problem starts with understanding the problem as well as exploring viable solutions.
Powered By WP Footer
Short Sales
No Gain or Loss Needs to Be Recognized in Securities Loan Transaction for Short Sales
August 1, 2011 by Financemyhome · Leave a Comment
The Tax Court recently reiterated its position with respect to non-recognition of the loan of securities by one to another person, such as a broker or investor engaging in a short sale. The Tax Court rules that such a loan does not constitute a “sale” for which capital gains would otherwise be realized. The Court set forth the terms of the loan agreement that must be agreed to by the parties under Section 1058(b), including (1) the return to the owner of identical securities that were transferred to the borrower, (2) payments must be made to the owner of the shares equal to all interest, dividends and other distributions which the owner of the securities would otherwise be entitled to receive, if any, during the loan period, (3) the owner’s risk of loss or opportunity for gain remains the same, and (4) the agreement complies with all requirements under the Tax Regulations. See Henry Samueli et al v. C.I.R., 132 T.C. No. 4 (2011).
Under the proposed regulations, the payments compensating the owner of the securities for interest, dividends and any other distributions are treated as “a fee for the temporary use of property” and not as interest or dividend income, except for those instances where the borrower defaults under the loan agreement or fails to deliver any consideration to the lender of the securities. In these limited circumstances, gain or loss must be recognized by the lender at the time of the borrower’s default.
This article was written by a friend of mine, Steve Katkov. Steve Katkov is Senior Vice President and General Counsel for Commercial Partners Exchange Company (CPEC), a national qualified intermediary facilitating tax-deferred exchanges of both real and personal property pursuant to Section 1031 of the Internal Revenue Code. He has been involved in thousands of 1031 exchanges of real and personal property, including complex reverse and improvement exchanges. His client list includes Fortune 100® companies and some of the nation’s largest privately held corporations. Prior to joining CPEC, Steve served for more than six years as a Vice President/Regional Manager for First American Exchange Co. (a subsidiary of First American Title Ins. Co.).
Steve Katkov, SVP (612) 419-6118
Commercial Partners Exchange Co.
1300 U.S. Bank Plaza
220 South Sixth Street
Minneapolis, MN 55402
Powered By WP Footer
Short Sales
Short Sales, Foreclosures, Bankruptcies, Judgements All in one Transaction
July 11, 2011 by Financemyhome · Leave a Comment
I just had a short sale blow up because of undisclosed tax liens and judgements. The title couldn’t be cleared and we ended up with a mess. Everyone involved has to dismantle and start over again. I couldn’t help but be disappointed. But, in today’s real estate world this is common. It is all about attitude. When life throws you lemons, learn to make lemonade. Yes, it is more complicated than that. Take a look at this video and share it with someone who may have had a set back. It is really powerful and inspirational
Powered By WP Footer
Short Sales
Projected Loss Severity Of A Foreclosure-both 2010 & 2011
January 12, 2011 by Financemyhome · Leave a Comment
Short sales are probably going to be the loss mitigation method of choice. When you look at the loss severity of a foreclosure, you can see why some other method might be preferable. Look at the Fitch ratings report here and see for yourself. This may be useful information when negotiating with the banks and servicer.
Powered By WP Footer
Short Sales
Short Sales Are Today’s Investor Opportunity
December 14, 2010 by Financemyhome · Leave a Comment
Short sales can be win win transactions for everyone. Take a look at the video and give me a call to get started.
Powered By WP Footer
Short Sales
HAFA Is Here & NOW- Additional Assistance On Getting Short Sales Completed
April 8, 2010 by Financemyhome · Leave a Comment
Powered By WP Footer
Short Sales
Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure
December 3, 2009 by Financemyhome · Leave a Comment
This is FANTASTIC NEWS!!! FINALLY, they are establishing minimum requirements on resolving the short sale procedural process. Here is the link to the government news release:
https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf
Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.
Powered By WP Footer
