We need to Stop Foreclosures…says Fed Chair.

Fed Chair Bernanke spoke today on the serious problems facing the national real estate market and his statements ring very true here for our Dayton Ohio Real Estate market.  You see the Dayton Ohio real estate market was 15th in the nation for 2007 to total percentage of households being foreclosed on.  The Dayton Ohio real estate market saw 14,285 foreclosure filings, up aver 145% over 2006.

Foreclosure impact on Dayton Ohio real estate:

According to Bernanke, the current mortgage delinquency rates have increased sharply and that is exacerbating the contraction in the housing sector.  So what can be done to reduce and stop foreclosure?

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As always, thanks for reading and please feel free to contact us with any questions at 937-353-4600 or Mark@MarkRyanGroup.com

Need to Stop Foreclosure… Now what about the taxes?

I am asked all the time by clients and homeowners facing foreclosure or are in pre foreclosure in the Dayton Ohio area several questions:

• How do I Stop Foreclosure in Dayton Ohio?
• How do I avoid Foreclosure in Dayton Ohio?
• What is a Short Sale and how can that stop foreclosure?
• I need Short Sale Help, where do I turn?
• What is the difference between pre foreclosure and foreclosure?
• Where can I find foreclosure help?
• If I sell as a Short Sale what happens to me with taxes?
• How do I know if my agent knows how to do a short sale?

For this article, lets focus on the tax issue with short sales.  I get that question from almost every client I meet with.  “How will a Short Sale Help and what about the taxes?"  Lets review that.

Short Sale Help and your Taxes…

With the The Mortgage Forgiveness Debt Relief Act of 2007 there is a good chance you will not owe taxes as a result of stopping foreclosure with a short sale.  Always check with your accountant on your specific situation.  The basics of the new law are:

1. Debt forgiven from 1/1/2007 to 12/31/2009
2. Must have been your principle residence
3. The principle balance of the loan must be less than $2,000,000 for a married couple…not a problem most Dayton Ohio real estate owners have to deal with.

Read here for recent news directly from the IRS on this topic: Mortgage Workouts, Now Tax-Free for Many Homeowners

Short Sale Help tips.

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As always, thanks for reading and please feel free to contact us with any questions at 937-353-4600 or Mark@MarkRyanGroup.com

Short Sale…Short Payoff…Short WHAT?

What is a Short Sale?

The short answer is when you sell your home or in our case, your Dayton Ohio real estate for less then you owe the bank.  Now you could own Dayton Ohio real estate AND sell it for less then you owe the bank… BUT you would have to pay the bank the difference.  If you can not pay the difference, ie: bring cash to the real estate closing… then you need a Short Sale.  As part of a short sale, the bank agrees to release the lien on your Dayton Ohio real estate so you can sell and accept as full pay off on your mortgage less then the balance.

ALSO READ: Short Sale Steps: How to Avoid Foreclosure

What is a Short Payoff?

A short payoff differs from a short sale in that you still sell your Dayton Ohio real estate for less then you owe the bank, but the bank does not just forgive the difference.  With a short payoff the bank will require you to sign an unsecured loan for the difference.  They will still release the lien on your Dayton Ohio real estate but they just don’t forgive the difference like they would in a short sale. 

So, the sale of your Dayton Ohio real estate can go through and you are really not harmed that much as you are just paying back what was rightful owed in the first place.  You win by being able to sell your Dayton Ohio real estate and the bank wins by not losing everything, they just get their money back more slowly.

This is not a great option for the “I WANT to sell my Home” seller in the Dayton Ohio real estate market… it is for the “I NEED to sell my home” seller in the Dayton Ohio real estate market.  When you MUST sell your home AND the value of your Dayton Ohio real estate is less then what you owe AND you have the ability to pay the difference just not the ability to come up with the cash today, a Short Payoff is a good option for you.

Tell me again…Short Sale or Short Payoff.

If you are behind or will be on your mortgage and can not make all the payments, then a short sale is most likely the best option for you and your Dayton Ohio real estate.  If you are current or behind on your mortgage but could make the payments the a short sale is most likely not an option, but a short payoff may be. There other options too… the clients we work with sit down together with us and carefully review the entire situation to determine the BEST action plan based on the specific Dayton Ohio real estate situation they are in.

The most important thing to keep in mind is that you NEED a Dayton Ohio real estate professional that is an EXPERT at assisting home sellers with short sales.  A short payoff could be handled by some real estate agents well enough… but a short sale is a whole different issue.  You need an EXPERT, someone who has been trained and has experience in working with and closing short sales in the Dayton Ohio real estate market.  Visit our other site to view a report on selecting the best agent. 

Just help me NOW!!!

As always, thanks for reading and please feel free to contact us with any questions at 937-353-4600 or Mark@MarkRyanGroup.com

How a Short Sale can save Dayton Ohio Real Estate Buyers Thousands of Dollars when they buy a home!

That’s right… you can save thousands of dollars on Dayton Ohio real estate.  Most buyers have heard of buying bank owned homes, REO’s, foreclosures, HUD or VA homes, etc…  Those homes can be a great value.  They can also be a complete nightmare… You see, when people are forced to leave their homes under pressure, sometimes they damage the home.  Many of the homes in the Dayton Ohio real estate market have damage caused by the old home owners, both by neglect AND intentionally…

Notice anything missing from this home??? 

I have seen much worse than this…

Short Sale / Pre Foreclosure  VS.  Bank Owned… what’s the better deal?

Well, I guess that depends on HOW good a deal you want… AND, what exactly do you think is a GOOD deal?  We need to consider a few questions…

    Do you want a good VALUE or just the lowest price?

    Do you want to do a LOT of work?

    Or, do you want to be able to just move in?

    Maybe do some minor repairs?

    How long are you willing to wait to get an answer on your offer?

    Can you wait a few month to “get your deal“?

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As always, thanks for reading and please feel free to contact us with any questions at 937-353-4600 or Mark@MarkRyanGroup.com