Many of our clients are surprised when we tell them that the Homeowners Association that runs their condominium complex can foreclose on their property for past due Association fees.  In Massachusetts they can foreclose even if you are current on your mortgage!   Many of the associations turn these properties over to an attorney to process and on top of your past due fees your balance will accumulate quickly with the addition of late charges, fines, attorney fees, interest, court costs and collection and enforcement costs.    Does this mean the association can foreclose on your condo and then sell it and keep all the extra for profit?  NO!   They will still be obligated to take care of any real estate taxes and municipal assessments as well as any first mortgage on the condo recorded before the date the assessment was brought.

What these associations and their attorney’s have figured out is that the bank will eventually have to pay off the association if the property is at risk of foreclosure to preserve their best interest in the property.  This puts the homeowner at a great disadvantage if they don’t have the right experts helping them in the sale of their home.

You can still sell your condominium as a short sale … so behind on your mortgage and condominium fees?  Give us a call today to find out how we can help!  We can refer you to our Massachusetts licensed attorneys too!

The percentages are up!  The short sales that we are getting approved now don’t just have a primary mortgage to negotiate.  Its more common to see  junior liens (second mortgage or line of equity) on the home, and more and more there are Orders of Executions against the property as well.  Orders of Executions are when another creditor that you owe money to (service company, credit card company) attaches a lien to your property for the money you owe them.  In order to get through a closing on your property all these liens are going to need to be properly discharged.  A lien can be discharged through payment, expiration of the lien terms or through an agreement that includes a debt forgiveness option.

Additionally, if the home is a condominium, there’s  a homeowners association that will need to be paid in full to obtain the 6D Certificate required to close and transfer title.  The condominium association fees can be piling up quicker than you know if they’ve gotten an attorney involved to do a taking of the property.

So is it still possible to do a short sale and sell the property?

YES!  With the exception of Federal and State liens we can negotiate all the attachments to the property to help you get to the closing table.  It’s important when we meet with you to let us know everything you know.  The earlier we work on the Orders of Executions and liens on the property – the quicker we can close.  So your situation may not be as unique or challenging as you think – best way to find out if you can still sell is to give us a call first!

We often get asked what the tax implications are for a seller when doing a short sale on their home.  It’s always best to ask your  tax questions to your Certified Public Accountant that knows your circumstances, and I am not a CPA, however here is some general information that may be helpful.

A short sale is created when a homeowner is looking to sell their home but the current market value will not allow them to get a purchase contract full paying off their mortgage.  Additionally, their own personal  situation (hardship) does not allow them to pay off this balance themselves at the closing.   For example,  the homeowners mortgage is for $350,000.  Out of the closing there will be $300,000 to pay the bank after all the closing expenses are covered.  We work to get a short sale approval from the bank that allows the closing to take place, the bank accepts the $300,000 and the deficiency on the mortgage of $50,000 is forgiven.  This forgiven debt is considered income by the IRS and the bank will issue a 1099 at the end of the year to reflect the forgiven debt.

Originally signed into law in December 2007, The Mortgage Debt Relief Act provided relief for home sellers by excluding the income that was generated from the forgiveness of a mortgage debt (either through short sale, foreclosure or loan modification) from their tax returns if the property was their primary residence and there was no more than $2 Million in debt to be excluded.   This act expired on December 31, 2013 after multiple extensions were granted.  There is before Congress currently several bills that would extend the Mortgage Debt Relief Act until either 2015 or 2016, but as of right now a homeowner could potentially owe money on taxes only making their current financial situation even more difficult!

Reuters has indicated that a reduction in short sale activity, potentially driven by the current expiration, would likely increase negative pressure on both timelines and recoveries offsetting some of the benefits of the recent gains in home sale prices.   Heavily supported by the State Attorney Generals offices and most housing and consumer advocate groups we hope to see the HR 2788 Mortgage Forgiveness Tax Relief Act signed into law so that our economic recovery can continue on it’s upward path… and so do we!

The truth is that sadly, at some point, most of us lose momentum. It’s already hard for me to pass an In-N-Out Burger or a Five Guys without thinking about having a burger and fries—and I am not even one month into the New Year.

Statistics show that it takes ten days to completely cleanse the body and reduce cravings for such temptations as sugary desserts and salty snacks. So, if you can maintain a healthy diet for a period of ten to fourteen days, then it’s very likely that from that point forward you will be home free.

The same goes for your daily routines as a real estate agent. If it takes ten days to get the toxins out of your body, could the same also apply to your real estate habits? What if I told you that you only had to maintain a disciplined work schedule for the next ten business days? Would you be able to do it? Would you be able to time block, prospect, market, and set appointments—if only for the next ten days? And, do you think that possibly your huge results would motivate you to continue to ten more?