Frankly Speaking Blog

If a bank writes off debt in a short sale, it’s a “taxable event,” and the lender tells the Internal Revenue Service about the deal by submitting a “Form 1099-C, Cancellation of Debt” at the end of the year. Home sellers must acknowledge the amount when they fill out their federal taxes. Through Dec. 31, 2012, however, the federal government forgives any tax liability associated with forgiveness of a mortgage loan.

In general, homeowners believe the government will extend this tax provision. However, as evidenced by the First Time Homebuyer Credit expiration in 2010, you can’t always count on the government to bail you out.

The government generally considers forgiven debt to be income. If a seller has signed legal loan papers to take out a $200,000 mortgage and the lender accepts $100,000 in a short sale, for example, the seller received the equivalent of $100,000 in free money by government estimates. As a result, the IRS taxes it. For tax year 2012, however, the government still forgives the debt; in 2013, it might not.

The tax amount can be significant. On a debt of $100,000, a short-sale seller in the 25 percent tax bracket could end up owing $25,000 in income taxes.

Since short sales can take months and even fall through, homeowners considering a short sale may want to start the process sooner rather than later.

If you would like to avoid foreclosure and explore other options, visit the short sale page on our website or call me at 407-227-2753.

Article from Florida Realtors  

At Ferrell Realty, Inc., we like to pause this time ofyear and reflect on the blessings in our lives. In addition to the love of family, companionship of friends, the bounty of this great country and health and happiness for all we love, we are grateful for the opportunity to serve your real estate needs.

Wishing you a very Merry Christmas!

Sincerely,

Frank Ferrell

Brighten Someone Else's Day with Random Acts of Kindess

Helping someone anonymously, especially a stranger is sure to put a smile on your face. Here are some of the best ideas we found to get you started. • Pay for the car behind you in the drive-through at a restaurant or coffee shop. • Put money in an expired parking meter. (Check your local laws first.) • Put some flowers on your neighbor’s porch. • Leave that awesome parking spot for someone else. (You could probably use the exercise anyway, right?). • Pay for the car behind you at a toll booth. • Forgive a debt, free and clear. • Deliver baked goods to your city workers. • Put coins in an expired dryer full of damp clothes. • Buy extra bags of pet food to take to your local animal shelter. • When you see firefighters, police, or members of the military in a restaurant, anonymously take care of their bill. • While visiting a hospital or nursing home, find out who doesn’t get any visitors and make a visit. • Brush off snow and ice on an extra car or two after you finish yours. • Leave coupons you won’t need on top of the corresponding items at the supermarket. • Send or take flowers to a local hospital with instructions for delivery to someone who needs them. • Give a magazine subscription to a nursing home.

Winter Park's Charles Hosmer Morse Museum of American Art will hold a free Christmas Eve Open House on Saturday, Dec. 24, from 9:30 a.m. to 4 p.m.

http://www.morsemuseum.org/calendar/day/2011/12/24/

New refinance program targets 'underwater' owners current on payments
Source: orlandosentinel.com

Matt Hamilton has dutifully paid the loan on his Maitland house and a Longwood rental condo, but until now he could not refinance them to obtain more-affordable interest rates because the properties are financially underwater.

I love bargains!  I'm going to another estate sale in Winter Park.  This weekend's sale is an incredible 4-Day Estate Sale - Running Wednesday through Saturday.

WEDNESDAY 9AM-1PM IS JEWELRY AND COIN SALES ONLY 

The remaining sale, Thursday - Saturday includes many wonderful collectibles, BMW, leather furniture, piano/organ, wonderful artwork, washer & dryer, tools, kitchen, UNIQUE ITEMS and much more.

The address for this estate sale is 3307 Derek Court in Winter Park.  Click link below to view more photos of items being sold. 

http://www.estatesales.net/estate-sales/222330.aspx

Get your holiday shopping started early and find some great deals.  Maybe I will see you at this one.

By the way, if you or someone you know is in need of an estate sale professional, contact me and I will provide you with experts in our area who handle these special estate liquidation sales.

Want to start your holiday "Discount" shopping early?  This weekend's estate sale, located at 244 Balfour Drive, contains many wonderful items, including a large collection of fine & costume jewelry,sterling flatware, beautiful mirrors, CHRISTMAS & HOLIDAY, decorator items, wonderful clothing and much, much more...

http://www.estatesales.net/estate-sales/222204.aspx

Hope to see you there!

In select states, (Florida is one) from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home. The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home.The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.

With an FHA 203k loan, “buyers can find a property that needs some TLC, fix it up however they want to, and finance the whole thing for $100.

In addition to $100 down instead of FHA’s typical 3.5 percent down payment, HUD says it will also cover up to 3 percent of the closing costs in most cases.

With a $100 down payment, you may soon realize your dream of home ownership.  I will do my part and find the right home for you!  Just call or text me at 407-227-2753.

 

As many Floridians look ahead to Memorial Day weekend and the start of the summer travel season, Ferrell Realty is urging drivers to plan ahead and follow important safety tips.

• Check your vehicle (Examples: check tire condition and pressure, oil and other fluid levels and inspect belts and hoses).
• Expect the unexpected when out on the road. Pay attention and buckle up.
• Get plenty of rest before traveling and take regular rest breaks.
• Be patient and alert to changing road conditions.
• Plan your travel route and check alternate routes. Have a map.
• If your vehicle breaks down or you need to change a flat tire, pull completely off the roadway.
• Please be cautious in areas with taller grass or brush, because hot vehicle components can spark a fire.
• Don’t drive under the influence of alcohol or drugs (even prescription drugs can limit your ability to safely operate a motor vehicle).
• Cell phones or satellite devices help in an emergency. Make sure they are fully charged.
• Obey the posted speed limit and check for changing speed limit conditions.
• Signal in advance for lane changes and turning maneuvers.
• Take plenty of food and water.
• Slow down and be prepared to exit the roadway if extreme weather conditions occur.