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PHOENIX AREA REALTORS...
We specialize in the sale of properties that are equity deficient.
Visit us at www.MiraVista-Properties.com for additional details.
PUT OUR SHORT SALE EXPERIENCE TO WORK FOR YOU! By almost any measure, a foreclosure is the single most damaging event to your credit. Worse even than a bankruptcy! A foreclosure will negatively impact your ability to obtain consumer credit for years to come. The affects are far-reaching, including limiting a consumer's ability to obtain automotive loans and credit card accounts, rent a home or an apartment, or even pursue certain employment opportunities. For homeowners experiencing a financial hardship and at risk of mortgage default or currently in mortgage default , it is well worth the time and effort to carefully assess your foreclosure prevention options with a licensed real estate professional, such as the staff at Mira Vista Properties Realty Group. As licensed Realtors and Short Sale Specialists with a combined thirty-years industry experience, we have helped homeowners throughout the Phoenix metropolitan avoid foreclosure by working directly with their lenders. Foreclosure prevention alternatives are available. Regardless of your financial circumstances or lack of home equity! Mira Vista Properties Realty Group is committed to assisting home owners with mortgage delinquency, BEFORE foreclosure proceedings commence. If you are well into the foreclosure process already, viable options for avoiding foreclosure are still available. Now more so than ever, mortgage lenders are willing to grant additional time to delinquent borrowers, in hopes of avoiding foreclosing on the property altogether. Visit us at www.MiraVista-Properties.com for additional details.
HIRING FORECLOSURE CONSULTANTS
SHORT VS. LONG TERM FINANCIAL HARDSHIPS
OUR COMMISSIONS ARE PAID BY THE LENDER
As a client listing a Short Sale with us, you have no out-of-pocket costs! Your mortgage lender pays virtually all sale costs, including our commissions, title and escrow fees and property repairs in certain cases. The mortgage lender accepts a discounted payoff. Your home gets sold to a qualified buyer and your outstanding mortgage debt, including any past-due payments, is paid off in full. Best of all, your credit is spared from the damaging effects of a foreclosure and you can move forward with your life without having to worry about past mortgage delinquency problems. Our staff of licensed professionals are standing by to work ON YOUR BEHALF and negotiate a short sale directly with your mortgage lender. Visit us at www.MiraVista-Properties.com for additional details.
SHORT SALES AND FEDERAL INCOME TAX CONSEQUENCES:
Well, not exactly. Say a home owner's existing mortgage is $300,000, but with the assistance of a qualified REALTOR specializing in Short Sales, the home owner sells the property to a buyer for $200,000. Most home owners would anticipate the $100,000 in forgiven debt to become taxable income. Something the IRS calls cancellation of indebtedness income. Using this same scenario, if this home owner's federal income tax rate is 30%, they would owe the IRS approximately $30,000 in federal income tax, in addition to having the blemish of a short sale on their credit report. The Mortgage Forgiveness Debt Relief Act, (H.R. 3648), recently signed into law by President Bush, now excludes discharges of indebtedness on a tax payer's principal residences for the purpose of calculating the individual's annual taxable income. Cancellation of indebtedness income tax, or phantom tax as some critics have called it, remained an obstacle for innumerable home owners experiencing financial hardships and considering a Short Sale of their home as an alternative to foreclosure. Many homeowners simply could not afford the additional tax burden assumed by proceeding with a Short Sale. At least that was the case before this new legislation was passed. Prior the new legislation, however, there were two existing exceptions to the federal tax code relating to the cancellation of mortgage debt. The first exception said that if a home owner is insolvent at the time their debt is canceled, then no additional federal income tax is owed. What does insolvent mean? It means if the homeowner adds up all their assets, such as cash reserves and the value of other property owned, but excluding many retirement funds, and subtracts all other liabilities and ends up with a negative number, they are technically insolvent. Simply put, if the home owner owes more than they have in assets, they are insolvent. The second exception involves non-recourse loans. In many states such as California, loans used to purchase a primary residence are typically considered non-recourse, and once again carry no added federal tax liability when sold as a Short Sale or through foreclosure. Passage of the Mortgage Forgiveness Debt Relief Act 2007 means the old insolvency tests are no longer the ONLY criteria that decides whether or not a homeowner will have cancellation of debt income tax liability. Now, homeowners are assured they will not have a cancellation of debt income tax liability when completing a Short Sale (or foreclosure), so long as the property qualifies as their principal residence and the total amount of canceled debt does not exceed $2 million. For real estate investors, the insolvency exceptions continue to be critical in a challenging real estate market because these individuals many own numerous properties, aside from their primary residence, at risk of foreclosure. Because in many instances the investor is insolvent, they avoid federal tax liability for cancellation of indebtedness. Visit us at www.MiraVista-Properties.com for additional details.
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Mira Vista Properties Realty Group, LLC © 2007 All Rights Reserved :: 1616 N Litchfield Rd., Suite 110, Goodyear, Arizona 85395 Direct telephone 888-842-6090 :: Fax telephone 888-636-2921 :: Email info@miravista-properties.com |
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