As everyone knows, the real estate and mortgage industry has been in trouble over the past few years. Thousands of families find themselves in financial trouble due to drastic rate increases in adjustable rate or interest only mortgages coupled with home prices that have been steadily declining. Most people failed to consider the possibility of the huge increases upon entering the agreements. Only now, they find themselves with mortgage payments that they cannot afford to pay. Often, foreclosure is seen as the only option available to these struggling families. However, there is one important aspect of a foreclosure that people forget – the resulting tax liability.
Foreclosure is always the last resort for someone struggling to make mortgage payments. People usually think it will be the end of their problems. However, the IRS considers debt canceled through foreclosure to be part of a taxpayer’s income. The IRS feels that it is entitled to the appropriate income taxes on that money. It also has access to every taxpayer’s financial information so it can ensure the appropriate taxes are paid. And as most of the country already knows, the IRS is very aggressive in collecting taxes that they know are outstanding and feel they deserve.
A short sale is a FAR MORE viable and FAR LESS destructive solution.
What is a short sale? A short sale is a method in which a bank accepts less than what is currently due on the mortgage as payment in full. With the market in the situation that it is in banks are becoming more and more receptive to this process. It can create a WIN/WIN for both the bank and the homeowner. Yes, there are tax implications with the IRS on the "forgiven or excused" money. This phantom money will get reported by a 1099 to the IRS for you to claim on your taxes in which you would want to seek a qualified and reputable tax professional to assist you with. However, this is far less money to have to claim than the entire mortgage balance!!
Foreclosure is the absolute LAST result that you should be willing to accept. I understand that it is very hard to face this, I know that it seems easier to hide and not answer the phone or open the letters. BUT the more time that goes by the fewer options you will have. There is a very limited window of opportunity to have a short sale. If you find yourself in this situation contact a Realtor to have them assist you!! Let them try to remove this burden off of your back.
I service the Taunton, Berkley, Freetown, Lakeville, Middleboro areas.
Please contact me if you need assistance.
www.berkleymass.com
Wednesday, October 24, 2007
To Buy or to Wait ~ That is the question
Everytime the tv or the radio goes on we are overwhelmed with different newscasters and financial gurus giving their opinions and market predictions. Has doomsday happened or is it yet to come? Has the sky fallen or are we still waiting for it to fall? And that oh so lovely bubble....has it burst yet???
I just want to scream!!!
What happened to buying a home that you love JUST BECAUSE YOU LOVE THE HOME?!?! I really can't remember when the change happened. Did it happen when I was sleeping? Did someone flick the switch on the lightbulb? Or did a neon sign light up that said "A home is an overgrown stock ....buy, buy, buy and flip, flip, flip!!!"
Where did "buy and stay" go?
If people looked at a home as a long term "investment" than the question "Is it going to go down more in value next year?" wouldn't be applicable. I know it isn't real life anymore to stay in your home for 30 or so years like our parents did (at least mine did and I am almost, but NOT QUITE, 40 yrs old). I can guarantee you my parents didn't buy their home wondering and worrying what it was going to be worth in 2 months or 2 years. It was a place to raise their family. They scrimped and struggled to make that payment every month, and believe me we did without. But it IS real to buy with the foresight of staying for 7 years or so. And if a home is purchased with that type of range in mind a value loss is no longer a concern. Yes, prices have corrected and yes there could be some more correction to come but then the ball starts slowly rolling the other way. First the ball stops rolling, than it takes a slow but not complete roll the other way, than it starts to creep some more, than it makes one complete roll and than it rolls again and again and again. Before too long prices start rising!!!
Don't think of your house primarily as an investment. Think of it as your home. Find a neighborhood that fits, a house you love, and a fixed-rate mortgage you can afford -- and forget about trying to game the market. If you're happy where you are, you are far more likely to stay there awhile -- which is, of course, the best way to maximize your investment.
Visit Southeastern Massachusetts most informative website.
Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com
I just want to scream!!!
What happened to buying a home that you love JUST BECAUSE YOU LOVE THE HOME?!?! I really can't remember when the change happened. Did it happen when I was sleeping? Did someone flick the switch on the lightbulb? Or did a neon sign light up that said "A home is an overgrown stock ....buy, buy, buy and flip, flip, flip!!!"
Where did "buy and stay" go?
If people looked at a home as a long term "investment" than the question "Is it going to go down more in value next year?" wouldn't be applicable. I know it isn't real life anymore to stay in your home for 30 or so years like our parents did (at least mine did and I am almost, but NOT QUITE, 40 yrs old). I can guarantee you my parents didn't buy their home wondering and worrying what it was going to be worth in 2 months or 2 years. It was a place to raise their family. They scrimped and struggled to make that payment every month, and believe me we did without. But it IS real to buy with the foresight of staying for 7 years or so. And if a home is purchased with that type of range in mind a value loss is no longer a concern. Yes, prices have corrected and yes there could be some more correction to come but then the ball starts slowly rolling the other way. First the ball stops rolling, than it takes a slow but not complete roll the other way, than it starts to creep some more, than it makes one complete roll and than it rolls again and again and again. Before too long prices start rising!!!
Don't think of your house primarily as an investment. Think of it as your home. Find a neighborhood that fits, a house you love, and a fixed-rate mortgage you can afford -- and forget about trying to game the market. If you're happy where you are, you are far more likely to stay there awhile -- which is, of course, the best way to maximize your investment.
Visit Southeastern Massachusetts most informative website.
Bobbie Files
Keller Williams Realty
508-789-0217 Direct
bobbiefiles@kw.com
Saturday, October 20, 2007
OPEN HOUSE - Taunton Sun. 10/21
OPEN HOUSESunday 10/21
11:00 ~ 12:30
243 Myricks Street
East Taunton
Come by and take a peek at this fully renovated home. The owners have replaced almost everything - windows, kitchen, both bathrooms, back deck, septic system, and even finished the basement! This is basically a brand new home. A great start for the first time buyer or someone looking to downsize.
Central AC ....Is it a MUST HAVE?
In my September's electric bill there was the usual newsletter from the electric company. Quite frankly I never read these things, but for some reason I picked this one up.
In it was a chart that had certain appliances and how much energy they use. Well the shocker to me is that I thought and have said that central ac is cheaper to run than window ac's, well according to their chart central ac is about equivalent to 5 window ac's. Now I have a home that in our area is considered nice sized, not huge but not small either, and I do not have central ac which was something that was on the future must haves, well I also so not use 5 window ac's. We typically have one large one on the 1st floor that is set for energy save running during the day, and then I have 2 upstairs that get set for 68 degrees and run based on temp. According to my electric company 5 window ac's running for 165 hours per month costs $80.19 the central ac costs $87.41.
That shocked me! I really always thought that the central ac was a cheaper alternative to the window ac's. I know there is a cosmetic improvement when you get rid of those things, but it seems like that is the only improvement. For approx. $12,000 I can have the central ac installed in both floors, and I wanted to do it for the savings AND for the aesthetic appearance. But now I wonder for just 2-3 months of ugly ac's is it worth the expense.
Does central ac make a break your decision to buy?
Is it a requirement on a home that you want to view the inside of?
Or is it just a nice bonus but no big deal if it is there?
I really would like to know what people think on this.
Thanks.
In it was a chart that had certain appliances and how much energy they use. Well the shocker to me is that I thought and have said that central ac is cheaper to run than window ac's, well according to their chart central ac is about equivalent to 5 window ac's. Now I have a home that in our area is considered nice sized, not huge but not small either, and I do not have central ac which was something that was on the future must haves, well I also so not use 5 window ac's. We typically have one large one on the 1st floor that is set for energy save running during the day, and then I have 2 upstairs that get set for 68 degrees and run based on temp. According to my electric company 5 window ac's running for 165 hours per month costs $80.19 the central ac costs $87.41.
That shocked me! I really always thought that the central ac was a cheaper alternative to the window ac's. I know there is a cosmetic improvement when you get rid of those things, but it seems like that is the only improvement. For approx. $12,000 I can have the central ac installed in both floors, and I wanted to do it for the savings AND for the aesthetic appearance. But now I wonder for just 2-3 months of ugly ac's is it worth the expense.
Does central ac make a break your decision to buy?
Is it a requirement on a home that you want to view the inside of?
Or is it just a nice bonus but no big deal if it is there?
I really would like to know what people think on this.
Thanks.
Wednesday, October 3, 2007
Is it time to change your lightbulb???
Not that I am the most energy conservative person in the world, anyone who knows me will say that I could be considered a pretty large user of electricity; but I came across a chart that astonished me. If you read below you will see the amount of money that can be saved by just changing 1 lightbulb in your home to one of those funnly looking fluorescent ones.
Two hours per day is 730 hours per year. Multiply by the cents-per-kWh calculated below. The compact fluorescent costs $3.43 to operate for a year, while the incandescent costs $14.89. That is a savings of $11.46 per year. Now I know that $11.46 isn't a lot, under $1.00 per month, BUT if you multiply that by the 15 or so bulbs you have in your home than the savings becomes something worth paying attention to. This is something that can be done that will have zero negative impact, you won't have to give up anything, no dieting necessary, to make a change that helps your pocketbook!!
So here's the equation using EPA facts and figures, including an average electricity cost of 20.4 cents per kilowatt-hour (kWh) for electricity. This is over the 12,000-hour lifetime of a 15-watt compact fluorescent bulb, which is equivalent to 12 1000-hour lifetime 60-watt incandescent bulbs:
Bulb with Electric rates @ 20.4c/kWh
Incandescent Compact Fluorescent
Lifetime usage 720 kWh 180 kWh
Lifetime electricity cost $146.80 $36.72
Replacement cost $6 (50 cents each) $3.50
Total cost $152.80 $40.22
Two hours per day is 730 hours per year. Multiply by the cents-per-kWh calculated below. The compact fluorescent costs $3.43 to operate for a year, while the incandescent costs $14.89. That is a savings of $11.46 per year. Now I know that $11.46 isn't a lot, under $1.00 per month, BUT if you multiply that by the 15 or so bulbs you have in your home than the savings becomes something worth paying attention to. This is something that can be done that will have zero negative impact, you won't have to give up anything, no dieting necessary, to make a change that helps your pocketbook!!
So here's the equation using EPA facts and figures, including an average electricity cost of 20.4 cents per kilowatt-hour (kWh) for electricity. This is over the 12,000-hour lifetime of a 15-watt compact fluorescent bulb, which is equivalent to 12 1000-hour lifetime 60-watt incandescent bulbs:
Bulb with Electric rates @ 20.4c/kWh
Incandescent Compact Fluorescent
Lifetime usage 720 kWh 180 kWh
Lifetime electricity cost $146.80 $36.72
Replacement cost $6 (50 cents each) $3.50
Total cost $152.80 $40.22
Monday, October 1, 2007
MARKET REPORT FOR BERKLEY, MA AS OF OCTOBER 1, 2007
Berkley, MA
Total Market Report is provided to give you an overall picture of the current market conditions.The following report is for single family homes sold in Berkley from August 1, 2007- September 1,2007.
Single Family Homes
Number of Homes on Market 50 (Up 3 since last report)
Average Days on the Market 135
Number of Homes U.A.G 5
Average Price of U.A.G. Homes $307,420
Number of Homes Sold 2
Average Sold Price $645,500 $331,000 As of Sept. 1, 2007 ~ $349,073 AS OF AUGUST 4, 2007 ~ $356,473 AS OF JUNE 24, 2007***
Average Asking Price $421,204
Lowest Price $205,000
Highest Price $1,095,000
MY LAST MARKET UPDATE WAS SEPTEMBER 1 AND THE AVERAGE SALE PRICE WAS $331,000 THIS MARKET AVERAGE IS DIFFICULT TO USE FOR THIS MONTH AS THERE WERE ONLY 2 SALES WHICH IS CONSIDERABLY LOWER THAN THE LAST SEVERAL MONTHS AND 1 OF THE SALES WAS A HIGH END WATERFRONT HOME WHICH DOESN'T LEAVE AN ACCURATE BASIS FOR THE AVERAGE MARKET.
WITH ALL THAT BEING CONSIDERED I MADED A SEPERATE CATEGORY FOR HOMES U.A.G. WHICH ARE HOMES THAT HAD AN OFFER MADE AND ACCEPTED AND ARE WAITING TO CLOSE.
IF I TAKE THE AVERAGE PRICE OF THE HOMES THAT ARE U.A.G. AND THE AVERAGE PRICE OF THE HOMES THAT HAVE SOLD - DROP OFF THE HIGHEST AND LOWEST SALE PRICE THE AVERAGE IS $340,920. KEEP IN MIND THIS IS USING THE ASSUMPTION THAT THE HOMES THAT ARE U.A.G. SOLD FOR THEIR ASKING PRICE.
USING SALES OF HOMES THAT SOLD 3 OR 6 MONTHS AGO AS A BASIS OF VALUE FOR YOUR OWN WILL NOT GIVE AN ACCURATE CURRENT MARKET VALUE. AS YOU CAN SEE, IN THE PAST SEVERAL MONTHS HOME PRICES HAVE DROPPED CONSIDERABLY. MY FIRST REPORT TOOK FROM JANUARY TO JUNE AS A BASIS, THE SECOND REPORT WAS FOR JULY, THE THIRD REPORT WAS FOR AUGUST, AND THIS REPORT IS FOR SEPTEMBER. THIS SHOWS THAT HOMES IN BERKLEY HAVE DECREASED IN VALUE 7% SINCE JANUARY 1.
Total Market Report is provided to give you an overall picture of the current market conditions.The following report is for single family homes sold in Berkley from August 1, 2007- September 1,2007.
Single Family Homes
Number of Homes on Market 50 (Up 3 since last report)
Average Days on the Market 135
Number of Homes U.A.G 5
Average Price of U.A.G. Homes $307,420
Number of Homes Sold 2
Average Sold Price $645,500 $331,000 As of Sept. 1, 2007 ~ $349,073 AS OF AUGUST 4, 2007 ~ $356,473 AS OF JUNE 24, 2007***
Average Asking Price $421,204
Lowest Price $205,000
Highest Price $1,095,000
MY LAST MARKET UPDATE WAS SEPTEMBER 1 AND THE AVERAGE SALE PRICE WAS $331,000 THIS MARKET AVERAGE IS DIFFICULT TO USE FOR THIS MONTH AS THERE WERE ONLY 2 SALES WHICH IS CONSIDERABLY LOWER THAN THE LAST SEVERAL MONTHS AND 1 OF THE SALES WAS A HIGH END WATERFRONT HOME WHICH DOESN'T LEAVE AN ACCURATE BASIS FOR THE AVERAGE MARKET.
WITH ALL THAT BEING CONSIDERED I MADED A SEPERATE CATEGORY FOR HOMES U.A.G. WHICH ARE HOMES THAT HAD AN OFFER MADE AND ACCEPTED AND ARE WAITING TO CLOSE.
IF I TAKE THE AVERAGE PRICE OF THE HOMES THAT ARE U.A.G. AND THE AVERAGE PRICE OF THE HOMES THAT HAVE SOLD - DROP OFF THE HIGHEST AND LOWEST SALE PRICE THE AVERAGE IS $340,920. KEEP IN MIND THIS IS USING THE ASSUMPTION THAT THE HOMES THAT ARE U.A.G. SOLD FOR THEIR ASKING PRICE.
USING SALES OF HOMES THAT SOLD 3 OR 6 MONTHS AGO AS A BASIS OF VALUE FOR YOUR OWN WILL NOT GIVE AN ACCURATE CURRENT MARKET VALUE. AS YOU CAN SEE, IN THE PAST SEVERAL MONTHS HOME PRICES HAVE DROPPED CONSIDERABLY. MY FIRST REPORT TOOK FROM JANUARY TO JUNE AS A BASIS, THE SECOND REPORT WAS FOR JULY, THE THIRD REPORT WAS FOR AUGUST, AND THIS REPORT IS FOR SEPTEMBER. THIS SHOWS THAT HOMES IN BERKLEY HAVE DECREASED IN VALUE 7% SINCE JANUARY 1.
Subscribe to:
Posts (Atom)
