Bank of America-Hosted Outreach Events

Bank of America is reaching out!  Recently Bank of America has been designating local branches as local resource center for homeowners in distress (behind on montly mortgage payments, facing foreclosure, or have a foreseeable financial problem in the near future.  Although they're not exactly in our neighborhood, there is one within driving distance in the Bay Area.  There they will provide you with the appropriate forms, provide assistance in completeing the not-so-user friendly forms, and even designate a local representative for you to stay in touch with.  Although it may be a 20 minute drive, it's much better then calling an 800 number and holding for up to 1 hour and then getting a generic answer.  I encourage any all people with a Bank of America mortgage which are in need of assistance and possibly facing foreclosure to call and visit the local center and obtain the assistance you need and deserve!

     Bank of America Resource Center
     1021 S El Camino Real, #A
     San Mateo CA 94402
     PH: (650) 581-8868
     Toll Free: (888) 669-6659
     Mon-Thurs 9am-8pm
     Fri 9am-6pm
     Sat 9am-1pm

Furthermore, Bank of America is hosting an Out-Reach Event locally.  You will be able to meet "in person with one of their specialists to discuss your home loan and any assistance solutions—including loan modification options & short sales—that may be available to you".  They say that same day answers may be available.  YOU MUST SIGN UP TO GUARANTEE YOU'LL BE SEEN!!!!  Click on the link below.

     Tuesday, August 7 - August 9, 8am-8pm
     DoubleTree Hotel
     2050 Gateway Place
     San Jose CA

http://homeloanhelp.bankofamerica.com/en/events.html?cm_mmc=CRE-HomeLoans-_-vanity-_-CA01VN0039_homeownerevent-_-071511

For more information, don't hesitate to call Homes & Beyond Realty, Inc.

Nidia Nuristani, nidia@hbrealtyinc.com, (408) 836-2457
Blanca Ramirez, blanca@hbrealtyinc.com, (408) 608-8713

Mortgage Debt Relief Act EXPIRES 12/31/2012

Mortgage Debt Relief Act of 2007 ... What is it? How does it work? When does it expire? What that means to me?

The Mortgage Debt Relieft Act generally allows taxpayers to exclude income from the discharge (short sale or foreclosure) of debt on their principal residence. The Act is set to expire Dec 31, 2012. What does this mean? For the purpose of this example, let’s assume the following:

You have a $150,000 mortgage debt which you decide to discharge. It sells or forecloses at $100,000 value. You receive a $50,000 1099 Cancellation of debt at the year end. Your current income tax bracket is 20%. You will have a $10,000 tax bill at the end of the year.

$150,000 in Mortgage Debt
$100,000 short sale price or foreclosure value
$50,000 1099 – cancellation of debt
20% Tax bracket x $50,000 cancellation of debt = $10,000 TAX BILL

Currently, there is an exception to this tax… until Dec 31, 2012. Unless we get an extension of the Mortgage Debt Relief Act, you will owe tax at the year-end if you short sale or foreclose.

Questions & Answers

1. “Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debt?”

a. No. The act only applies to money that was borrowed for purchase or substantial improvement of a homeowner’s primary residence.

2. “Does this apply to debt incurred to refinance the home?”

a. It could if the principal balance of the old mortgage would have qualified

3. “Is there a limit on the amount of debt that can be forgiven?”

a. The maximum amount of debt that can be forgiven is $2 million or $1 million if you are married but filing separately for the year.

4. “Is there an extension?”

a. No. As of now there is a bill House Resolution 4290 currently in committee.

b. If approved, it would extend the Mortgage Debt Relief Act until the end of 2013.

c. Although the bill has gained a number of co-sponsors, the chances of it passing are currently unclear.

5. What this means for homeowners?

a. If you are considering a short sale, you need to begin now.

b. For the sale to qualify for the Mortgage Forgiveness Debt Relief Act, it has to close before the end of 2012.

c. Although short sale timelines have improved, it is not unusual for them to take 6 months.

d. Banks don’t necessarily have to foreclose… what if the bank forecloses next year

Call us for more information. Nidia Nuristani (408) 836-2457), Blanca Ramirez (408) 608-8713 or visit www.HBRealtyInc.com/AvoidForeclosure

Wells Fargo agree to pay out $434 MILLION

Wells Fargo has agreed to pay out $432.5 million to settle a lawsuit over predatory lending to minorities.

The city of Memphis, Tennessee, sued the bank claiming that it unfairly targeted low-income African-American communities for high-interest and high-fee loans. The city alleged that the bank used deceptive marketing, failed to properly explain the loan terms to borrowers, and then sold the loans on secondary markets to reduce its own risk, CNN Money reported.

Under the terms of the settlement agreement, Wells Fargo will lend up to $425 million to residents of Memphis and the adjoining counties with $125 million set aside for high-risk borrowers.

An additional $3 million will be paid to the city for economic development. Wells Fargo will also provide $4.5 million in funding for property improvements and community grants.

If you are a distressed homeowner having difficulties paying your mortgage, call me today. 

Nidia Nuristani
Realtor / Certified Distressed Property Expert
Direct: (408) 835-2457
nidia@hbrealtyinc.com

Mortgage Debt Relief Act

Mortgage Debt Relief Act of 2007 ... What is it?  How does it work?  When does it expire?  What that means to me?

The Mortgage Debt Relieft Act generally allows taxpayers to exclude income from the discharge (short sale or foreclosure) of debt on their principal residence. The Act is set to expire Dec 31, 2012. What does this mean? For the purpose of this example, let’s assume the following: 

You have a $150,000 mortgage debt which you decide to discharge.  It sells or forecloses at $100,000 value.  You receive a $50,000 1099 Cancellation of debt at the year end.  Your current income tax bracket is 20%.  You will have a $10,000 tax bill at the end of the year. 

$150,000 in Mortgage Debt
$100,000 short sale price or foreclosure value
$50,000 1099 – cancellation of debt
20% Tax bracket x $50,000 cancellation of debt  = $10,000 TAX BILL

Currently, there is an exception to this tax… until Dec 31, 2012.  Unless we get an extension of the Mortgage Debt Relief Act, you will owe tax at the year-end if you short sale or foreclose.

Questions & Answers

1.      “Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debt?”

a.      No. The act only applies to money that was borrowed for purchase or substantial improvement of a homeowner’s primary residence.

2.      “Does this apply to debt incurred to refinance the home?”

a.      It could if the principal balance of the old mortgage would have qualified

3.      “Is there a limit on the amount of debt that can be forgiven?”

a.      The maximum amount of debt that can be forgiven is $2 million or $1 million if you are married but filing separately for the year.

4.      “Is there an extension?”

a.      No.  As of now there is a bill House Resolution 4290 currently in committee. 

b.      If approved, it would extend the Mortgage Debt Relief Act until the end of 2013.

c.      Although the bill has gained a number of co-sponsors, the chances of it passing are currently unclear.

5.      What this means for homeowners?

a.      If you are considering a short sale, you need to begin now.

b.      For the sale to qualify for the Mortgage Forgiveness Debt Relief Act, it has to close before the end of 2012.

c.      Although short sale timelines have improved, it is not unusual for them to take 6 months.

d.      Banks don’t necessarily have to foreclose… what if the bank forecloses next year

Call us for more information. Nidia Nuristani (408) 836-2457, Blanca Ramirez (408) 608-8713 or visit www.HBRealtyInc.com/AvoidForeclosure

Bank of America Short Sale, Chase Short Sale?

Is your mortgage with Bank of America or Chase?  Are you having difficulties keeping up with your mortgage?  As a Bank of America & Chase Preferred Agents, Homes & Beyond Realty, Inc. may be able to help you.  In the most recent trainings we have been given the tools to aid distressed homeowners and help them avoid foreclosure.  Both lenders have really streamlined their internal processes and timelines.  They are encouraging home ownership and are doing everything they can in order to keep you in your home.  Bank of America is mailing out letters and doing principal reductions.  However, if you don’t qualify for a loan modification, principal reduction or forbearance, you may qualify to do a Short Sale and be released from the financial liability.  Furthermore, both Bank of America and Chase are granting UP TO $30,000 for relocation assistance paid at the closing table of the Short Sale.  Everything is confidential.  Call us for more information.  Nidia Nuristani (408) 836-2457, Blanca Ramirez (408) 608-8713.