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Wendy Smith

Going, Going, Gone - The Mortgage Debt Relief Act

11-12-11
Wendy Smith

According to the IRS, the Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.

Discharge of debt is more specifically defined in Publication 4681. Generally, the Act includes debt forgiven via foreclosure, short sales and principal reduction.

The Act was designed to help homeowners avoid additional financial hardship created by short sales, foreclosure and mortgage restructuring. Therefore, debt forgiven on investment properties, vacation homes, and business properties does not qualify for this relief.

Like any ruling from the IRS, The Mortgage Debt Relief Act is easily misinterpreted. That said it would be prudent for any homeowners anticipating a 1099 to consult an accountant to determine if any expected reduction of debt is eligible under the Act.

Misunderstanding of the Mortgage Debt Relief Act can be found on numerous websites misstating the Act to be forgiveness of the deficiency loan balance resulting from a short sale or foreclosure. This is an incorrect representation of the Mortgage Debt Relief Act.

The Mortgage Debt Relief Act passed in 2007 was scheduled to expire December 2010. Legislation extended some of the Mortgage Debt Relief Act tax savings thru December 2012.

It is anybody’s guess as to whether or not further legislation will extend the expiration beyond December 2012.

The short sale process continues to be a long drawn out process therefore

any homeowner considering a short sale should consider

the consequences of not having the benefit of the

relief provided by the Mortgage Debt Relief Act.

Fortunately, some states like California have adopted similar laws on a state level.

Take the time to consult with a professional now while there is time and opportunity to make the most of this valuable relief.

Visit www.WendySmithShortSales.com for more information.

BoA Announcement

10-06-11
Wendy Smith

Below is a screen shot of an email from Bank of America that I received as a Florida Real Estate Broker.

This is an incredible (& long past due) offer from Bank of America

(Chase has been doing the same thing for nearly a year)

IF you have a Bank of America mortgage,

(you don’t have to be behind in payments)

IF you are even considering a short sale…

NOW is the time to take action. Call me.

Contact info: Wendy Smith, P.A. cell 727-452-3301

shortsaler@gmail.com

Website: www.WendySmithShortSales.com

Free consultation. It’s just that simple.

Note: I am a full time real estate broker specializing in helping homeowners that are having problems making payments or just need a short sale. I am not affiliated with the government or Bank of America – I just help homeowners.

Where Am I Supposed to Go?

08-25-11
Wendy Smith

Mike Phillips sits in front of me staring blankly at the table as the coffee in front of him slowly goes cold. He runs a hand across his face and sighs heavily. “What am I supposed to do now?” he says. His usually bright blue eyes are blank with hopelessness as they meet mine. He has hit a brick wall and he knows it.

This 55-year-old father and grandfather from Clearwater, Florida, who has worked all his life and done all he could for his family has now lost his job through no fault of his own. He is a victim of our depressed economy and his story is being played out in almost every town in every state across the country as homes slide into foreclosure leaving families who can’t afford to move on.

Mike is a skilled worker but there are no jobs. “I’ve tried to find work,” he says. “Believe me. But there’s nothing.” His unemployment benefits ran out two weeks ago and his only income is an unskilled job that gives him just 15 hours per week. “At least I get food stamps,” he says. “So the grandkids can eat.” He picks up the spoon and begins to stir the coffee round and round.

Mike lives in a home that is in foreclosure. The owner could no longer afford the payments when rent stopped coming in on a property that has lost 40% of its value. “What happens when the sheriff comes to change the locks?” he says, half to himself. “What do I tell the kids?”

I don’t know what to say to him. Where does this good, hardworking man take his children in a county with such severe budget cuts that there is no housing for children? And while politicians enjoy the luxury and comfort of their expensive homes immune to the policies they make, an unacceptable and rising number of Americans have literally nowhere to go. People can turn their heads and pretend not to see what’s happening, but these people are real and many of the ones suffering most are children.

“You know,” says Mike putting down his spoon, “I used to be the guy who gave a few cents to homeless people on the street.” He gets up, leaving the coffee still untouched on the table. “I never thought I’d be one of them.”

He walks to the door and then looks back at me. “Where am I supposed to go?”

Beautiful Townhome with Two Master Suites, Fireplace & Updated Kitchen!

12-28-10
Wendy Smith
2229 Fox Chase Blvd
PALM HARBOR, FL
wood floors, fireplace, modern kitchen, patio

2BR/2+1BA Townhouse
$80,000

Year Built 1989
Sq Footage 1,161
Bedrooms 2
Bathrooms 2 full, 1 partial
Floors 2
Parking Unspecified
Lot Size Unspecified
HOA/Maint $180 per month

Description

interior unit, neutral wood floors, beautiful fireplace, half bath downstairs, screened patio with laundry off dining nook. Quiet area off Belcher and Alderman in Palm Harbor, make offer!

Property Features

Central A/CCentral heatFireplace
High/Vaulted ceilingHardwood floorLiving room
Breakfast nookDishwasherRefrigerator
Stove/OvenStainless steel appliancesLaundry area - inside
Balcony, Deck, or Patio

Community Features

Guest parkingClubhouseSwimming pool(s)
PlaygroundGated property


Additional Photos


Curb Appeal

Living room fireplace

Modern kitchen

One of two master suites
Contact Info
Wendy Smith
Wendy Smith Real Estate
(727) 452-3301
For sale by agent/broker


Equal Opportunity Housing

Gulf access from your backyard in quaint Crystal Beach!

12-28-10
Wendy Smith
607 Broadus Street
CRYSTAL BEACH, FL
On the water! Direct access from the back yard to the bay

1BR/1+1BA Single Family House
$159,900

Year Built 1966
Sq Footage 750
Bedrooms 1
Bathrooms 1 full, 1 partial
Floors 1
Parking 2 Uncovered spaces
Lot Size 7,962 sqft
HOA/Maint $0 per month

Description

Waterfront property - has dock; ideal as a vacation home or second home; genuine Florida living at its finest; bring all offers!

Property Features

Central A/CCentral heatTile floor
Living roomBalcony, Deck, or PatioYard

Additional Photos


Photo 1

Photo 2
Contact Info
Wendy Smith
Wendy Smith Real Estate
(727) 452-3301
For sale by agent/broker


Equal Opportunity Housing