A Possible Solution to Your

                                    Mortgage Mess;

                                       A Short Sale

        Post 911, there were record numbers in home sales all across the board. Not only were homes being sold like hot cakes, but prices( as we now know) skyrocketed to unaffordable proportions( as we also now know ). Mix this with the irresponsible behavior of not only mortgage brokers and banks alike, but also the shady dealings of some Real Estate salespeople, and we have a major bruhaha on our hands. On top of all this, we are going through economic stress due to the rise in oil prices, the ridiculous over-spending for a mostly unnecessary war and the depreciation of the once almighty dollar.

        Eventually, like everything else known within our beautiful yet turmoiled planet, everything that goes up must come down. And that brings us to the unfortunate situation of many home owners who are now going through personal financial crisis because they just can't gather enough pennies to pay their mortgage. Why? The most prominent reason being that people trusted their mortagage brokers, lenders, and Real Estate Agents were doing a fair and honest job of getting them the best price and loan possible( even when they couldn't afford one to begin with). So when people were receiving Adjustable Rate Mortgages while being told that these rates would readjust only a few points higher or even possibly lower, they were obviously being lied to. Now these same owners are waking up to the nightmare that is called foreclosure. These people lose their homes, credit, emotional health, and livelihood all in one destructive, miserable shot.

        Sad..... It's the one word that pops into my mind when I think about this troubling situation that families are going through. Is there a solution? Yes. Does everyone know about it? No, but they should by now. But for those that don't, the solution is called a Short Sale.

        What is a short sale? It's the sale of a property, with the lending bank's authorization, for a price that is sometimes well below the pending mortgage and the property's market value. Not only does this help the owner(s) get out of a burdening and detrimental situation, but it will, in many cases, forgive the owner from having to pay the rest of the loan. Not all homes or owners qualify for a Short Sale, but on the other side of the coin, you don't necessarily have to miss payments to qualify for a Short Sale. The first thing anybody interested in going forward with this process is to seek legal advice from an Attorney to understand fully all the potential risks.

        One of these cons has to do with taxation. Under Federal Law, any debt that is exonerated is considered profit, thereby also considered income, which at the end of the year could be taxed by the Federal government. Luckily in 2007 the Mortgage Cancellation Tax Relief Act was passed, and if a person qualifies, any debt forgiven on a principal residence will not be taxed as income on the following year. The maximum for a single person is $2 milllion and $1 million for a married person.

        There is also no guarantee that a bank will accept a Short Sale on a property. It all depends on the the owners' hardship, the condition and location of the property, and the home's current market value.

        If you feel that you fit the description above and that your will and patience are running on low, don't hesitate to give us a call. We can set up an appointment and help you make a decision on whether a Short Sale is right for you. When you are ready to speak with anyone of our Realtors, give us a call. We can also be reached at any of the telephone numbers or emails below.

Leon Burrowes- (718)809-0248 or at  leongarth@gmail.com 

David J. Weiner- (718)207-2403 or at davew05@davidjweiner.net

Arnold Sanchez- (347)270-6385 or at ash.brooklynhomes@gmail.com