Short Sale Considerations

The majority of the time this blog is devoted solely to real estate investing from an investor’s point of view, however, during this post I will address the homeowners’ position in terms of short sale considerations. That being said, a short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer, you will not qualify for a short sale. So even if you meet all the other criteria, it is possible that no one will buy the short sale. It is also dependent on the lender accepting the buyer’s offer. If the lender rejects the offer, a short sale will not take place.

• Tax Consequences
• If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.
• You should speak to a real estate lawyer and a tax accountant to determine the amount of short sale tax consequences, and whether you can afford to pay those taxes, if any.
• Blemished Credit Report
• A short sale will show up on your credit report. It’s a pre-foreclosure that has been redeemed. Short sales affect credit ratings. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction. Experts say the drop in your FICO score is identical to a foreclosure reporting.

Real Estate Investing in Florida

Flagler County Florida's unemployment rate rose in July to 15.9 percent, up from 15.6 percent the previous month, according to figures released today. Ouch!!!! Bet there are some great opportunities there for real estate investors . I'll let you know :-)

See you in Florida.

James Gage

Foreclosure News

Hello All:

Many have called a bottom in the real estate market, while others, not as bold have stated that foreclosures are decreasing! I have to respectfully disagree on both points! Last month their were 360,000 foreclosure notices sent out, so the the third wave,the term I have coined, is on it's way and we should see the effect by fall.

So, what does this mean for us that are real estate investors? Get ready to make some tremendous profits with my "kibble and bits" strategy...

Until next time - be well.

James Gage

Real Estate Tip of The Month Aug 09

I have a valuable tip for Home and Condo renters, and for individuals that do lease options.
Have a clause put into your lease and lease option contracts with the seller, which requires the Property owner to supply documentation to you monthly that proves that they paid the mortgage. By documentation I mean a copy of their mortgage statement. Also state that the Rent payment will not be made until the mortgage statement is received. If they do not agree to these terms, just move on to another landlord or lease option seller. A reputable landlord eager to rent their property will agree to this.

Note: In the case of lease options, if you feel that the seller might not make the payments; insist that you pay the bank or mortgage company on a monthly basis.

This is just a sample of the useful information you receive as a Gage Consulting Group Newsletter subscriber, why not tell others? They will thank you for it; direct them to http://www.JGage.com

Thank you in advance for your support.

Until next time, be well.

James Gage