Update: Federal taxes on forgiven short sales

Update: Federal Taxes on Short Sales Forgiven in CA 2014   Since the Mortgage Debt relief act of 2007 expired in December 2013 there has been much confusion over the issue of the IRS tax on short sales in California.  Although we do not have a law currently in place defining the forgiveness of Federal Taxes on Short Sales in California for  2014 we do have a documented opinion from the IRS thanks to Senator Barbara Boxer. “The Internal Revenue Service Will Not Penalize California Families … [Read more...]

Federal taxes on short sales forgiven in CA

Federal taxes on short sales are still forgiven. The Mortgage Debt Relief Act of 2007 allowed taxable debt on your federal income tax to be forgiven on a short sale.  Try searching "The Mortgage Debt Forgiveness Act of 2007" on  web sites like Google  ,Yahoo or Bing.   You'll find the The Mortgage Debt Relief act of 2007 has expired. Does that mean you will owe money to the IRS on a short sale? Get the facts. The IRS will not tax you on a short sale in 2014 if you live in … [Read more...]

Credit? Short sale or foreclosure or loan mods?

Credit score with foreclosure and short sales

Credit is the golden calf impacting your financial future. When facing the loss of your home, the decision to modify your loan, short sale your house or just to let your home foreclose can have a long-term impact on your credit. Short sale vs. foreclosure vs. loan modification and the impact on credit is not an exact science. Many variables come into play. Let's start by looking at how late payment of your mortgage impacts your credit: 30 days late: 40-110 points 90 days late: 70-135 … [Read more...]

Why are we in this housing mess?

What is the cause of the housing mess?

OK so I talk at length on these subjects: the truth about loan modifications, foreclosure's impact on credit, the advantages of short sales and how the current real estate laws are in homeowners' favor. But what is the source of these problems? Is there an answer to why we are in this housing mess and the worst economic cycle since the great depression? It doesn't matter where homeowners live -- whether in Beverly Hills, Culver City or Westchester -- the question comes up. If the question … [Read more...]

Foreclosure timeline in California

Foreclosure timeline in CA 280x150

Are you confused about the foreclosure timeline in California? Many homeowners on the Westside, Culver City, Beverly Hills, Westchester and Mar Vista have no idea what kind of timetable they are looking at when facing foreclosure in California. Some think it is one month after the first missed payment while others think it’s much longer. The best method to avoid foreclosure in California is to understand the timeline governed by state law. I created a timeline for non-judicial … [Read more...]