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Rozalyn Franklin
Rozalyn Franklin - (803) 318-6412
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Friday, December 21 2012

Columbia one of the best resources to use when it comes to statistics in the Real estate Market is the Office of the Comptroller of the Currency (OCC)

The OCC recently released their mortgage metrics report for the first quarter of 2012, and the numbers tell a compelling story.

Columbia according to the report, loan modifications dropped 36.7% from last year and completed foreclosures rose from last year by 2.67%. Out of the gate, this might seem like bad news, but there’s more to the story. The truth is the rate at which completed foreclosures is rising has slowed down from last year, and newly initiated foreclosures have dropped 8.1%. And the best statistics we saw was that short sales rose 19.7%!

Columbia it’s no secret that 2012 hes been the year of the short sale so far. Every short sale represents a Columbia Homeowner getting out of a distressed property and getting new Columbia owners into a home. We love to see that this number has risen so much, and we look forward to seeing it continue.

Posted by: Rozalyn Franklin AT 10:45 am   |  Permalink   |  Email
Monday, December 03 2012
Columbia Homeowners will the Mortgage debt Relief act be Extended?

The Mortgage Debt Relief Act of 2007 is an Act written to provide protection for some Columbia Homeowners regarding the tax liabilities from the 1099-C received when a lender forgives their debt. Meaning, when a lender waives deficiency, that amount is “Forgiven” debt, and a 1099-C is issued.

According to IRS tax rules, this forgiven debt is to be considered as “income,” and therefore subject to be taxed. While this seems unfair to the seller, since this is not actually income received, it is, nonetheless, law. The Act protected those Columbia Homeowners who are selling  primary residences, and usually applies only to first liens, credit lines used for purchase money or home improvement.

In many cases, this was a major decision point for a Columbia Homeowner's consideration of how to address their selling situation, and one that made a short sale attractive over a Deed in Lieu or a foreclosure.

The Mortgage Debt Relief Act of 2007 is set to expire on December 31, 2012. As of today, there is no replacement or extension in place. Some Columbia homeowners may be concerned about the future of short sales, and question whether a Short sale is still the best decision for them.

Well I say yes. The main reason is that now about 40% of short sales do not qualify for the protection of the Act , and yet; many Columbia Homeowners still feel that the benefits outweigh the risks. and, with new (Fannie/Freddie/HUD) guidelines making full deficiency waivers more of a certainty than in the past. It is extremely rare that Columbia Homeowners not protected by the Act actually owe a tax liability.

With the Act in force, only primary residences are covered. This means that a large percentage of sales are not covered. There are certainly many Columbia Homeowners who are liquidating investment properties and second homes. The benefits afforded to these Columbia Homeowners are:

• The chance for a full deficiency waiver
• Avoidance of a foreclosure on credit

Deficiency is the difference between what the Homeowner owes and what the lender nets on sale. This difference will be reflected on the 1099-C issued by the lender and is the amount that may be considered forgiven debt, and therefore, income, based on current IRS Tax rules, or now the Tax Liability. This is what is also currently covered in some cases under the Mortgage Debt relief Act.

Columbia Homeoners, Deficiency is what you owe the bank, and Tax liability is what you owe the IRS.

Posted by: Rozalyn Franklin AT 03:27 pm   |  Permalink   |  0 Comments  |  Email
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Brought to you by:

Rozalyn Franklin
Keller Williams Realty

140 Wildewood Park Drive
Columbia, SC 29223

(803) 318-6412


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Disclaimer: The information provided on this website should not be constituted as legal advice. The content is intended to provide general information about the short sale and foreclosure processes, and should not be acted upon without the counsel of a qualified REALTOR®, attorney, and tax expert.

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