Tax liability may result from a short sale or foreclosure because of a deficiency between the amount owed to a lender and the amount the lender actually receives. I have spoken with many clients and homeowners about the tax implications of such deficiencies when forgiven (waived) by the lender. Although I do not give tax advice, this subject is almostContinue Reading

Question: We have received a notice of trustee sale. How long do we have before we must move out? Answer: Whoever acquires the property at the foreclosure auction is required to give a 3-day Notice to Quit. If you do not move out, then the new owner must file an Unlawful Detainer action. You have 5 days to respond, andContinue Reading

[My recent comments on a modification article in “first tuesday,” a respected source of real estate information and education.] “Cramdown” is a catchy phrase that expresses the frustration and helplessness of a lot of underwater homeowners. If you’re trying to impress lenders and influence decision-makers, however, it’s pejorative and condescending. Principal balance “reduction” is accurate and less emotional, and keepsContinue Reading

HUD recently announced that FHA-guaranteed loans may be used to refinance “underwater” loans for borrowers who qualify and who are current on their payments. “Short refinance” has always been available. It means that the new loan amount is less than the balance of the loan to be paid. The lender being paid off must agree to the “short payoff.” Hypothetically,Continue Reading