Mortgage Forgiveness Debt Relief Act extended to 2014 Is the Mortgage Forgiveness Debt Relief Act extended? People have been very worried with the expiration of the relief enacted in 2007 entitled “The Mortgage Forgiveness Debt Relief Act of 2007.” In fact, there are some thinking they may be looking to cancel short sales in progress and having to ask (or beg) their banks to reinstate their loans, help them keep their homes, or seek other remedies in order to avoid a foreclosure or short sale in this new year.

If one can not afford their mortgage debt, how can they afford a big tax bill in the form of “cancelled debt” or call the forgiveness of debt, income? Income? Ugh, the final insult for many facing foreclosure, short sale or loan modification in California. Some have called this short sale tax relief, or foreclosure tax relief. Families and individuals could be relieved of the obligation of taxation of this forgiven debt, called income , for their principal residence and up to 2 million dollars.

The mortgage forgiveness debt relief act has been a very important factor in a decision to short sale, foreclose or look into a bankruptcy. Read the IRS rules of The Mortgage Forgiveness Debt Relief Act and Debt Cancellation here. But YES! It appears to be extended through to January 1, 2014. It looks like it IS part of the fiscal cliff bill that was passed through the Senate and House today/tonight and is ready for the President’s signature.

You can read the PDF version of the “package” and see the following language: SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS. (a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to indebtedness discharged after December 31, 2012 Has California extended it’s Mortgage Forgiveness Debt Relief for 2013?

Not yet. Keep in mind the news tonight as it relates to this “fiscal cliff package” is for federal IRS tax purposes and does not apply to individual states , and at this time we do not know if California will extend their similar debt relief act, though they did extend the California provisions once before in 2010. See California’s Mortgage Forgiveness Debt Relief information here .

So stay tuned for that, I’ll keep you updated the best I can here as soon as there is any update on the state provisions of this act. If you are thinking of selling your home, need to do a short sale, or want information about options to avoid foreclosure for your Contra Costa home, call me! I serve the areas of Concord, Clayton, Walnut Creek, Pleasant Hill, Martinez, Antioch, Brentwood, Pittsburg, Bay Point, Lafayette, Orinda, Moraga, Danville, San Ramon and many other areas of Contra Costa and some parts of Alameda county.

I’m well versed in short sales and can offer you referrals to qualified attorneys, CPAs and tax professionals to answer your questions. Catherine Myers, Broker Associate Prudential California Realty Offices in Pleasant Hill, Walnut Creek and San Ramon DRE #01337828 Contact me online 925-683-2125 Keep in mind, that the information provided above is not designed to substitute for professional advice from a competent, experienced tax professional.

The information may be incorrect or your situation may be such that it does not apply to you. Be careful about relying on any internet source for information without also checking in with a professional that knows YOUR individual situation.

Short Sales and Bankruptcy in Contra Costa What about Short Sales and Bankruptcy in Contra Costa? I’m often asked by Contra Costa short sale sellers whether or not they can do a short sale while in bankruptcy. Or, can they contemplate a short sale during the process of bankruptcy. For the most part, you will need to use your bankruptcy attorney as your guide here, as they will be your resource on the timing of the court approving a short sale during the bankruptcy proceedings, but in the meantime, Bank of America has just released some very important guidelines to reference if you’re thinking of a short sale and bankruptcy in Contra Costa.

Remember, and this is something I tell ALL of my clients and those I consult with regarding short sales, you MUST consult with an attorney about the possibilities of a bankruptcy BEFORE you sell your home. Your home being your largest debt (most likely), attorneys have told me that many make the mistake of selling the home AND THEN trying to do bankruptcy. It certainly may still be do-able, but some are surprised it may not be as favorable as if you had the largest debt of your life (your home).

So, Short Sales and Bankruptcy in Contra Costa is complicated, and it is imperative you have professional guidance. If you need some attorney names, I can pass along a few I’ve had clients use over the years. Bank of America can review a short sale offer while the loan is in an active bankruptcy. To complete a short sale and issue the approval letter, the bankruptcy documents must be filed and approved by the court.

Any final agreement will require bankruptcy court approval. Homeowner(s) should consult with their Bankruptcy Counsel about how these programs could affect their mortgage and their bankruptcy case. When a loan is in bankruptcy, there is an Automatic Stay , also known as a “hold,” of any collection activity placed on any and/or all debts to which the debtor is a party.

Before the short sale specialist can discuss the short sale, Bank of America must have written authorization from the Homeowner(s’) Bankruptcy attorney on the law firm’s letterhead to discuss loss mitigation options with the borrower . This is in addition to the Bank of America Third-Party Authorization Form needed from the borrower to speak to the bankruptcy attorney and the listing agent.

If Homeowner(s) is/are currently in a bankruptcy proceeding, or have previously obtained a discharge of this debt under applicable bankruptcy law, all communication and notices are for information purposes only and is not an attempt to collect the debt, a demand for payment, or an attempt to impose personal liability for that debt. The Homeowner(s) is/are not obligated to discuss their home loan with Bank of America or enter into a short sale agreement or other loan-assistance program.

Customers should consult with their bankruptcy attorney or other advisor about their legal rights and options. For a short sale to be processed to completion for a loan in bankruptcy, Bank of America must receive one of the following releases issued by the bankruptcy court: Granted Motion to Sell* Granted Motion for Relief from Automatic Stay with noted short sale negotiation* Dismissal Discharge with Abandonment, Closing Order, Final Decree, Trustee No Asset Review *A granted Motion differs from a requested Motion.

Note: If Homeowner(s) receive(s) a discharge under a Chapter 7 a bankruptcy proceeding: discharge releases the Homeowner(s) from personal liability for certain specified types of debts. The Homeowner(s) is/are no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the Homeowner(s) from taking any form of collection action on discharged debts, including legal action and communications with the Homeowner(s), such as telephone calls, letters, and personal contacts.

Although a Homeowner is not personally liable for discharged debts, a valid lien (i.e., a charge upon specific property to secure payment of a debt) that has not been avoided (i.e., made unenforceable) in the bankruptcy case will remain after the bankruptcy case. Therefore, a secured creditor may enforce the lien to recover the property secured by the lien. Bankruptcy Frequently Asked Questions 1.

What additional documents will be needed to complete this short sale? Bank of America must have written authorization from the Homeowner’s bankruptcy attorney (on the law firm’s letterhead) to discuss loss mitigation options with the Homeowner. The customer and the attorney may determine that they do not want to give this authorization and the short sale can be negotiated through the attorney.

This attorney authorization permitting Bank of America to speak to the Homeowner(s) is in addition to the Bank of America Third-Party Authorization Form needed from the Homeowner(s) to speak to the bankruptcy attorney and agent. Communication cannot occur with the real estate agent/Homeowner(s) until the bankruptcy attorney’s written authorization on the firm’s letterhead and the Bank of America Third-Party Authorization form are received.

2. When will I receive the approval letter? An approval letter cannot be issued until the releases, identified above from the bankruptcy court has been received. Once the release is received, the file can be submitted for approval to the appropriate investor(s) and/or mortgage insurance company. The file will then follow the normal approval process to ensure it meets investor requirements.

3. Why can’t you approve a short sale file while waiting for the bankruptcy to be released? An approval must follow the direction provided in the release by the bankruptcy court. That is why a short sale will not be approved unless a court order permitting the sale is first received. 4. What fees can be paid related to the bankruptcy proceeding? Any fees that are directly associated with the bankruptcy would be subject to further review and approval.

For example, if Bank of America incurs fees to file a pleading to approve the short sale in the bankruptcy court, Bank of America may seek permission from the bankruptcy court to allow such attorney and filing fees. 5. Can a homeowner qualify for a Home Affordable Foreclosure Alternative (HAFA) incentive while in bankruptcy? Yes. However, any funds going to the Homeowner(s) through state incentives or other incentive programs must be properly disclosed and handled in accordance with bankruptcy legislation and local rules.

6. Are additional documents required for a short sale when the homeowner is in active bankruptcy? Yes. Two additional documents are needed for a short sale that is in active bankruptcy: An attorney authorization letter from the bankruptcy attorney providing permission to speak with the Homeowner(s) is required. This is separate and in addition to the required Bank of America Third-Party Authorization Form signed by the Homeowner(s) permitting Bank of America to speak with the bankruptcy attorney and the real estate agent.

Bank of America must receive a release issued by the bankruptcy court (listed above).

Walnut Creek condos for sale! NEW! Walnut Creek condos for sale Two wonderful Walnut Creek condos for sale , both new on the market today! Here the details of these Walnut Creek condos for sale, both in the Walnut Creek School district including Acalanes School District’s, Las Lomas High School in Downtown Walnut Creek. Check the schools for availability of course!

Searching for Walnut Creek homes for sale? You’ve come to the right place! 2721 Oak Road Unit D, Walnut Creek 2 bedroom, 2 full bath, 1208 square feet. Lower end unit with carport parking right in front of unit. This is an REO bank owned condo in Walnut Creek’s Oak Road Villas complex. All new paint and carpet. Clean and ready to move right in. Community pool.

Near the canal trail and Walden Park. Just a couple blocks to the BART Station and Club Sport. Don’t miss this great opportunity. Bank owned so no waiting for a short sale answer. Listed at $304,900. See the MLS details: Walnut Creek Oak Road Villas for sale 1315 Alma Avenue, Walnut Creek This unit is in the prestigious Montecito building complete with secure entry and concierge at your service !

Couldn’t ask for a better location for the Montecito in Walnut Creek! Huge 1 bedrooms, 1.5 bath, 953 square feet for this Walnut Creek condo for sale. The balcony overlooks the beautiful courtyard. In the heart of Walnut Creek downtown, near shopping, dining and commute! Listed at $265,000. Search more Walnut Creek condos for sale here:

Landlords in foreclosure = tenants have rights in foreclosure Landlords in foreclosure = tenants have rights in foreclosure Landlords in foreclosure in California We’ve all heard the stories and read the headlines about landlords in foreclosure resulting in a lot of stress and uncertainty for their tenants. As tenants, do you have rights if your landlord is in foreclosure?

YES. You do, and if a new California law passes landlords may actually have a much larger responsibility of disclosure and may be subject to hefty fines for not disclosing they are a landlord in foreclosure. California is considering SB 1191 Residential Tenancies, notices of default. Here’s a recap: This bill would require certain landlords (offering property with one to four units) who have received a notice of default to disclose that notice to any prospective tenant prior to entering into a lease agreement for the property.

A violation would allow the tenant to void the lease or be punishable by a minimum financial penalty of two months’ rent. I deal with tenants all the time in homes that are in default. Often the owners were working with the bank to modify their loans, and most I know, have done all the right things but due to circumstances i.e. a job change, relocation, new marriage, or other personal/family issues have forced them to make a move.

Often they were able to keep up the mortgage payments on the rental despite them owing more on their monthly mortgage than the rents will bear, until circumstances changed. For some, that change may have been in the form of a job loss, a new baby necessitating time off work, increase in loan payments, a loan reset, or simply a denial of a modification request.

Right now, tenants in California do have substantial rights when facing landlords in foreclosure and very often a lease will survive a foreclosure unless the new owner will be moving into the home. There have been quite a few times I’ve facilitated the short sale to an investor who elected to keep the same tenant in place. Win-win for all. Here’s an article for more information about Landlords in Foreclosure: California considers hefty fines for landlords who hide default.

This is important as there are many investors in Contra Costa facing default on their tenant occupied properties. Contra Costa short sales include many tenant occupied homes.

Avoid Contra Costa Mortgage Fraud Mortgage rip-off’s have jumped over 60% in 2012. Avoid Contra Costa Mortgage Fraud! Beware of offers that will help you get a lower rate, refinance, modify or even clear all your debt – for a fee. Remember the old saying? “If it sounds to good to be true, it probably is.” Contra Costa Mortgage fraud is so rampant that the California Association of Realtors has produced a Public Service Announcement (PSA) you’ll find below as a video.

Contra Costa County DA’s office also has an incredible wealth of information and resources if you feel you’ve been scammed, or want to check the legitimacy of an offer you’ve received. Here is a link to the Contra Costa DA Mortgage Fraud Division. Here is the text of the Mortgage Fraud PSA: Mortgage fraud reports have increased nationwide from more than 6,900 in 2003 to more than 93,500 in 2011, according to the Federal Bureau of Investigation (FBI).

And the nonprofit Homeownership Preservation Foundation reported the number of mortgage foreclosure scams has shot up 60 percent so far in 2012. In response to the growing fraud, the CALIFORNIA ASSOCIATION OF REALTORS® is educating homeowners and warning consumers they are at risk of being scammed by third parties, such as those that promise loan modifications for an up-front fee, which is illegal.

Many so-called foreclosure rescue companies or foreclosure assistance firms review foreclosure notices in newspapers, the Internet, and public files to identify potential victims, according to the Federal Trade Commission (FTC). They then ask for money up-front and claim they can help homeowners save their home. Some are bold enough to offer a money-back guarantee.

However, the scammers simply take the homeowners’ money, often leaving them in worse circumstances than before. Consumers should NEVER pay money up-front for services promised. Instead, get a referral to a free HUD-approved housing counselor to advise on loan modifications, short sales, and other alternatives for avoiding foreclosure by calling (888) 995-HOPE. http://www.995hope.org/ .

Homeowners who have a home loan with one of the participating lenders or servicers should visit their home loan assistance site: • Ally/GMAC : 800-766-4622 • Bank of America : 877-488-7814 • Citi : 866-272-4749 • JPMorgan Chase : 866-372-6901 • Wells Fargo : 800-288-3212 In addition to the bank loss mitigation phone numbers available (above), you’ll see that the above bank names all link to their website.

Most major banks have websites with everything you need to know about their modification, short sale and homeowner help programs. Be careful out there! There really isn’t much you need to pay anyone to do for you! Be careful of claims of class action suits against banks that you can buy into. Be careful of promises to “save your home,” or sell it back to you.

Avoid Contra Costa Mortgage fraud by learning the signs, asking lots of questions of a third party (i.e. a trusted realtor, the local DA’s office or a friend or family member) and ALWAYS remember if it sounds too good to be true, it probably is. There is NO magic bullet, or any secret no one else knows.

HELP for distressed homeowners HELP for distressed homeowners As the government settlements pressure the largest servicers to help more homeowners, we continue to learn about more programs that may help you keep your home, or to avoid foreclosure. Here are some resources and websites for you including government organizations and the websites of the major servicers for help and options: Making Home Affordable – know your options Hope Now – free help for homeowners Keep your home California BANK OF AMERICA Bank of America Short Sale Guide Bank of America Home Transition Guide Bank of America Homeowner Counseling Resource s – non-profit and HUD counselors CHASE (and EMC) Chase Home Ownership Center Chase short sale center – do you qualify?

Chase short sale information packet – what documentation do you need? Chase HAFA short sale information Chase local Walnut Creek Homeownership Center Wells Fargo Wells Fargo Help for Homeowners Wells Fargo Short Sale information Wells Fargo HAFA eligibility matrix I’ve worked with all of the above servicers MANY times. Most short sales are successful. If you want to save your home, exhaust all your efforts first.

Call your bank. OPEN YOUR MAIL. Some of these servicers are offering help to targeted “at risk” homeowners and as an example, Bank of America has started sending letters to some homeowners starting this week. Read Bank of America’s press release today 5/8/12 to read more about their new modification and principle reduction program. Other banks/servicers are announcing new ways they’re reaching out to homeowners too.

It’s going to be a while for a Contra Costa Housing rebound It’s going to be a while for a Contra Costa Housing rebound As I described in one of my last blog posts, Contra Costa continues to be one of the hardest hit counties in the Bay Area, in fact, the entire state of California. We’ve seen median price drops from the peak of a low of 36% to a high of 70%.

That is astonishing to think, isn’t it? The distressed home market continues to drive many areas of our Central and East Contra Costa housing markets, though we are seeing a bit more of a push by some banks to short sale, vs. a foreclosure. Here is some historical information on foreclosures and defaults from Foreclosure Radar: Contra Costa foreclosure filings over the last 3 years have been declining: Contra Costa foreclosure inventories have also seen drops over the last 3 years: The Contra Costa Times, using data from Zillow also put together a nice map of the Bay Area median pricing changes.

The interactive map does show that some areas of the Peninsula are almost back to pre-peak pricing, while Contra Costa remains with some significant drops from the peak.Walnut Creek down 34 – 35% (depending on zip code) Clayton down 43.4% Concord down up to almost 50% (again, depending on zip code) Pleasant Hill down 43.9% The biggest drops are in East County, no surprise there: Antioch down 64 – 67% (94509 and 94531 respectively) Brentwood down 55% Pittsburg down 69% Check out the rest of the Times article here .

Want to buy a HUD Home in Contra Costa? Want to buy a HUD Home in Contra Costa? Did you know you have to have a HUD registered broker to be able to make an offer on a HUD property? YES, I am a HUD registered broker and can help you place an offer on a property in Contra Costa or Alameda Counties. HUD homes can go fast though. Many are open to owner occupants and non-profits first, then after 30 days will open to investors and others.

Want to search HUD homes in Contra Costa or HUD homes in Alameda, check out the links below: HUD Homes for sale Contra Costa HUD Homes for sale Alameda County HUD Homes in Concord CA The process for an offer on a HUD home is completely different than the typical California real estate transaction. Call for a free consultation. If you already have an agent, have them call me, this is not an attempt to move you away from a current business relationship.

Here is an example of a HUD home one of my wonderful buyer clients is purchasing now. Located on Silverleaf Lane in Concord it is a 2008 built 4 bedroom home, listed for 325k. What a treasure!