Home Selling in Miami Shores>Question Details

Sandy, Home Seller in Miami Shores, FL

I am looking into doing a shortsale for my condo. I do have homestead and was wondering if the 1099 Tax could be waived because i have been

Asked by Sandy, Miami Shores, FL Sat Feb 20, 2010

living in my property the whole time? Do i let the dade county tax collector know before or after the sale?
Also, do i owe any money after the shortsale? My loan amount is 120000 and the value of the condo is
75K at the moment. (I also put 60K down 5 years ago which i am loosing) I got laid off.
I like to inform myself before i get a realtor, that's why i ask for different opinions.

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Answers

5
Hello Sandy,

There are many programs available to home owners right now.
HARP, HAMP, HAFA and regular short sales, as well as Deed in Lieu of foreclosure, with foreclosure being the worst.

You can start by finding out all of the options available to you.
Many attorneys do free consults.
There are realtors who have been trained to work with homeowners like yourself, who find themselves in in pre-foreclosure situation. You can refinance, do loan modification, do a HAFA short sale, regular short sale of Deed in Lieu (if worst comes to worst)...You can call your lender, explain that you are in financial hardship situation, and find out about some of the options available to you. In some short sales, lenders pay your taxes. In other cases, lenders will pay the seller to do the short sale (if qualified).

Whatever you decide to do, you'll probably be better if you do your short sale it right away - starting from contacting an experienced CDPE agent (Certified Distressed Property Expert) in your area (you can find one on CDPE website).

For tax questions, it is best to consult a tax professional. I also highly recommend a Stop Foreclosure Now book. If a person is broke, for example, an insolvency exemption could apply (which means that you won't pay any deficiency). It is also important to make sure that the bank waives the deficiency in their approval letter (some do and some don't). It sounds that you do have 2 requirements of the short sale though: the property is upside down financially, and you do have a hardship...
Please feel free to call me if any questions.

Hope this helps,

Irina Karan, CDPE
Beachfront Realty, Inc.
305-904-2355
IrinaKaran@gmail.com
1 vote Thank Flag Link Mon Apr 2, 2012
Get the free attorney consult. There is money in the short sale programs to pay the attorney if the attorney takes your case. You might not have to pay the attorney anything to handle our short sale negotiations.
Flag Tue Apr 3, 2012
First, I'm sorry to hear that you've been laid off. I'll keep my fingers crossed that a great new opportunity is around the corner for you.

It sounds like you may have a good basis for a short sale. I'd recommend you not wait - right now it typically takes 6 months to get a short sale done, and the current tax relief ends in 2012. (See the IRS link below).

The short sale negotiator (I would recommend a lawyer who has done 1000s of such transactions) will negotiate between your banks, the condo association, the tax collector, and any other liens to ensure that the short sale can occur.

Because people are seeking bargains, you want to price correctly so that you can get multiple offers quickly, stop showing, and then simply wait for the bank to make their decision.

Call me if you'd like to discuss this further.
0 votes Thank Flag Link Tue Apr 3, 2012
Dear Sandy:

As part of the Mortgage Forgiveness Debt Relief Act of 2007, bill; H.R. 3648, was passed by Congress and was signed by President George W. Bush in December of 2007. The bill, grants relief to homeowners that have been given relief from mortgage debt through a foreclosure, short sale or other similar agreement with the lender. Generally, eligible debt is what is referred to as acquisition indebtedness. Acquisition indebtedness is defined as debt incurred to acquire, construct or rehabilitate a residence. However, refinanced debt will qualify, so long as the debt does not exceed the original amount and home equity debt will qualify so long as the funds were used to improve the taxpayer's home. No relief is available for cash-outs. The forgiven mortgage debt must have been secured by the residence and no more than $2 million of mortgage debt is eligible for the exclusion ($1 million of mortgage debt for a married person filing separately). The relief applies to qualified debt forgiven between January 1st 2007 and December 31st 2012.

The answer as to wether you will owe or not you the bank will require a contribution from you at closing rr not is usually no so dependent on the amount of the deficiency but instead on other factors which often tend to be very specific to each situation. I can tell you that we recently obtained a release for a seller who owed ober $700,000 and the property sold for about $300,000.

Past due property taxes can be resolved as part of the negotiations.

Please feel free to google my name (Joe Robaina with Realty World) to find out more about me and my qualifications. I am part of the short sale specialist network and would be glad to meet with you at your home or my office (16300 NE 19th Ave, Suite B, North Miami Beach, FL) without any obligation if you would like to find out more about my qualifications.

I am currently helping dozens of other embattled homeowners in similar situations throughout this area.

At your service,

Joe Robaina
1(800)792-3042
Web Reference: http://www.jrsellsmiami.com
0 votes Thank Flag Link Mon Feb 22, 2010
Please go to http://www.hud.gov and look for credit counselors and other resources. There are consequences of doing a short sale and you might want to talk to an attorney.Are your payments more that the amount you will have to pay to live somewhere else or are you moving in with family?
If you rent it out will you break even or lose money? Have you talked to your bank to see if they have any loan modification programs?
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Feb 20, 2010
Sandy,

I believe as your primary residence you most likely will not receive a 1099. It is part of Obama's plan if your bank participates. They also agree not to pursue you for any deficiency.

Make sure you use a Realtor that has experience with short sales as in closing them, not just beig aware of them.

I cant jhelp you as I am too far away.

Good Luck

Kevin Cloutier
Southern Premier Realty
Cape Coral, FL
0 votes Thank Flag Link Sat Feb 20, 2010
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