So many people have tried the loan modifications. What the banks rarely tell participants is that the clock doesn’t stop running. If your loan is backed by Freddie Mac – you will only be able to participate in the HAFA program IF you have a short sale offer submitted to your bank at least 15 days Before the Sheriff Sale date. That’s a Critical component. Most people don’t even know who backed their loan. check these sites: www.freddiemac.com/mymortgage/ and for Fannie Mae:
1. If you just let the house go back to the bank, you risk being pursued for the deficiency. Ex: owe 260k – bank sells for 200k = deficiency of 60k The bank will gather all the deficiency notes they have and sell to a collection agency. If that collection agency can’t collect – they will sell to another one And each time – it’s recorded on your credit report ---- UNTIL you file bankruptcy.
2. The Homeowner Relief Act expires on 12-31-16. This is the phantom tax. If you close by the end of the year – the IRS will not tax you on the deficiency Ex: again: owe 260k – bank sells for 200k = 60k income profit, which will possibly be taxed starting in January 2017. And we know how that goes --- IRS tacks on penalty fees, etc… CALL US TO GET INFO FOR YOUR PARTICULAR SITUATION Office: 586-275-2424 Neal: 810-560-8957 Anne: 586-634-8890 Or Email us at Anne@MIRealtyGroup.com
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