This year in Washington State we have new legislation designed to prevent homeowners in danger of losing their homes from being scammed. Freddie Mac recently released this video explaining how the scam works and how to protect yourself. It’s a little cheesy, but you get the message:
Remember, don’t sign paperwork without talking to a Lender, an attorney or a Realtor that you trust. Or, contact the counselors from the State of Washington at 1-877-894-HOME or visit their webpage here.
Windermere Realtor Shannon Krueger has a great post on her blog about a workshop being offered to help Homeowners keep their homes.
Are your mortgage payments increasing? Are you worried about losing your home? Did you get a loan you can’t afford or didn’t understand? Do you feel like you were misled by professionals who helped you get your loan? Has your income been reduced?
Come to this FREE seminar and learn about the foreclosure process, income tax issues in foreclosure, safe refinance products and more. Know your legal rights and options.
Bring your loan documents! Certified Mortgage Counselors and Loan modification representatives will be available to discuss options for your mortgage.
SATURDAY, March 14th 10:00am - 6:00pm Registration begins at 9:00am
Evergreen College Tacoma Campus 1210 6th Ave
If you are concerned about being able to make your mortgage payments in the future, or if you are already behind, grab your documents and head down to this free workshop to explore your options and find out what it takes to keep your house.
UPDATE: Today it was decide that REET does not apply to Short Sales. THANK GOODNESS!
Washington Realtors Association sent out a notice to it’s members this morning, saying that “The Department of Revenue (DOR) recently sent a letter to the Escrow Association explaining its position that in short sales, the Real Estate Excise Tax (REET) applies not only to the selling price of a home, but also any debt forgiven by the seller’s lender.”
Of course, this is total crap. Why should you pay taxes on a price the market wouldn’t bear out? NWMLS broke it down like this:
For example, if a seller owes $350,000 on its mortgage, the property sells for $300,000, and the lender agrees to forgive the remaining $50,000 in debt (i.e. the seller will not be held liable for the $50,000 difference) - there are tax implications for the seller related to the $50,000 debt forgiveness.
The seller is already potentially having to report that $50k that the bank forgave as income, now the state is saying they must also pay excise tax on that?
Realtors are not allowed (by law) to give tax or legal advice in this situation. If you are selling your home in a Short Sale, make sure to talk to a Real Estate Attorney and a CPA.
I do not exaggerate when I say that at LEAST once a day, someone will ask me a question about foreclosures. Foreclosure terminology can be a bit intimidating, but it’s easy to learn. Here are some common terms and what they mean:
“In connection with the streamlined modification program announced jointly by
the Federal Housing Finance Agency (FHFA), Freddie Mac, and Fannie Mae on November 11, 2008, Fannie Mae is instituting a halt to all foreclosure sales on occupied single-family properties as well as to the completion of evictions from occupied singlefamily properties scheduled to occur from November 26, 2008 through January 9, 2009.
The temporary halt on foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with FHFA to implement the streamlined modification program scheduled to launch December 15, 2008. The foreclosure halt will apply to all portfolio mortgages and all MBS pool mortgages owned or guaranteed by Fannie Mae and to foreclosures of homes that are already in process with foreclosure sale dates scheduled during the halt period. Servicers and foreclosure attorneys (or trustees) must institute the halt on foreclosures for eligible homeowners no later than November 26, 2008.”
Just so you know, when a person falls behind in their payments and the forclosure process is started, it becomes a matter of public record. This means that homeowners are baraged with mail, phone calls, sometimes even personal visits from people wanting to charge them money to get them out of their situation.
Depending on what kind of services are being offered, it might be just the help the homeowner needs. Real Estate agents might be able to help them sell the home before it is foreclosed. Bankruptcy attorneys may be able to help the homeowner keep their home. Unfortunately some of the time, desperate homeowners are paying for help that is available to them for free.
With Pierce County apparently claiming the dubious honor of
