Short Sale and Bankruptcy

What about short sale and bankruptcy? Why do I need to do a short sale if I filed bankruptcy? Answer: A bankruptcy only removes the homeowner from the liability (the repayment of the loan), not the lien (on the title … Continue reading

Principal Reduction Mortgage and Taxes

Do I get 1099 if I get a principal reduction from my mortgage company?   Answer: Yes. This is called cancellation of debt and you will almost certainly get a 1099-c. Please check with your accountant or tax expert on … Continue reading

Deed in lieu vs Foreclosure?

What is the difference between a deed in lieu and foreclosure?   Answer: A deed in lieu of foreclosure (also known as a deed in lieu) still results in you having to leave your home. However, you’ll technically avoid having … Continue reading

HAFA Short Sale Rules, Program Extended to Dec 31, 2013

HAFA Short Sale Guidelines Home Affordable Foreclosure Alternatives (HAFA) Short Sale Update: HAFA Supplemental Directive 12-02, effective June 1, 2012, impacts short sales with loans from non-government-sponsored enterprises in which the homeowner is eligible for the HAFA program. Key enhancements … Continue reading

Bank of America Deficiency Judgement, New Policy on Second Mortgages

Bank of America announces changes to deficiency judgements on short sales with a second mortgage. As part of the settlement with the Department of Justice, Bank of America’s policy on pursuing deficiency judgments for second mortgages now includes a waiver … Continue reading

Cash for Keys and Taxes

Q: Do I get a 1099 for any Cash for Keys incentives? Answer: You will receive a 1099 tax form for any Cash for Keys incentives issued to you.   Example: Here’s Bank of America’s disclosure on the tax implications … Continue reading

When does the Mortgage Forgiveness Debt Relief Act expire?

When does the Mortgage Forgiveness Debt Relief Act expire? A: The Mortgage Forgiveness Debt Relief Act Expires 12/31/2012 Download the free guide. Here’s another post I wrote on this topic: http://michaelsrealestate.com/short-sale-1099-and-the-mortgage-forgiveness-debt-relief-act/

What is a HAFA short sale?

What is a HAFA short sale? A: HAFA stands for Home Affordable Foreclosure Alternative Program. HAFA is a program of the Department of the Treasury & Housing and Urban Development which is administered through your participating lender. The benefits of … Continue reading

Short Sale 1099 and the Mortgage Forgiveness Debt Relief Act

Do I get a 1099 if I do a short sale? A: Almost certainly, yes, you will get a 1099 if you complete a short sale. The Mortgage Forgiveness Debt Relief Act Expires 12/31/2012 In 2007, the Mortgage Debt Relief … Continue reading

Bank of America Cash for Keys Program Nevada

Bank of America Cash for Keys Program, Nevada   LIMITED TIME OFFER On May 15, 2012, Bank of America announced a new short sale Relocation Assistance Program: Homeowners are eligible to receive $2,500 to $30,000 in relocation assistance. For a … Continue reading