Negotiate with Your Mortgage Lender

Many banks are willing to work with homeowners who are struggling to make payments. If you haven’t missed a payment yet, you may be able to renegotiate the terms of your loan. Lenders often prefer to modify loans rather than foreclose on homes.

Explore Government Assistance Programs

The federal government has implemented several programs to help homeowners avoid foreclosure. These include:

• Home Affordable Modification Program (HAMP): Allows you to modify your loan and reduce monthly payments.
• Home Affordable Refinance Program: Enables you to refinance an adjustable-rate mortgage into a low-interest, fixed-rate loan.

Eligibility requirements apply for these programs.

Sell Your Home to a Cash Buyer

If you’re unable to keep up with your mortgage payments, you could consider selling your home to a cash buyer. This allows you to avoid foreclosure and move on with your life.

Seek Help from a Foreclosure Defense Attorney

An experienced foreclosure defense attorney can help you navigate the legal process and explore all available options. They can assist with negotiating with your lender, filing for bankruptcy, and representing you in court.

Take Advantage of Foreclosure Prevention Services

Organizations like Neighborhood Housing Services of Waterbury offer foreclosure prevention counseling and financial education to help homeowners avoid foreclosure.

Remember, moving quickly is crucial when facing foreclosure. Don’t abandon your home, as this can have a severe negative impact on your credit score and financial future. With the right assistance and by exploring all available options, you can potentially avoid foreclosure and keep your home in [city], [state].

The post How to Avoid Foreclosure first appeared on Cornerstone Homebuyers.

The tax laws have been designed in a way that will not add any more burden to you upon inheriting the property. This implies that the financial consequences are less daunting than what you would expect, which is good news for you.

Tax Consequences When Selling A House Inherited In [city] [state]

We Buy Houses In [state] is a house-flipping company that buys houses in cash, as is, without the seller needing to make any repairs to the house. We are an ideal solution if you need to sell your house fast, or if you don’t want to deal with agents, pay agent fees, or simply want a fast hassle-free process getting your house off your hands. Our home purchasing program is transparent and fair. Get in touch with any questions you may have, and we will tackle all your issues together.

Calculation of basis in [city] [state_ab]

Let’s assume the property has gone through the probate process successfully. To comprehend how you’ll be taxed having inherited a home, you need to know how the basis is calculated. Basis, in this case, refers to the asset cost for the purpose of the calculation of capital gains, among other taxes.

When a person dies, the value or basis of their property in [city] [state_ab] is increased to the market value at the time of their death. For instance, if a person purchased a home 20 years ago for $25,000, but it was worth $100,000 at the time of their death, that property would be valued at the latter amount for the purpose of calculating capital gains.

Taxation of gains/losses of inherited houses in [city]

Capital gains or losses refer to what you earn from selling a property that you use for either personal or investment purposes. Such can be houses, furniture, and many more things. If you decide to sell an inherited house in [city] [state_ab], that sale is regarded as capital gain or loss for the purpose of income tax. In most cases, for you to qualify for lower rates of long-term capital gains, you are required to have held that property for at least a year.

However long the duration you have been in ownership of an inherited home, any gain or loss will still be treated as long-term.

Reporting the sale in [city] [state]

Upon selling an inherited home, you have to report it for income tax purposes. You should first calculate your capital gain or loss. This is done by subtracting the basis from the sale amount. You should then report that amount to the necessary authorities.

Having an inherited home can be stressful, given the fact that you have new property to take care of and pay taxes for it at the same time… You should go through the probate process in [city] [state_ab] as the first step to selling your home.

The court will then authorize you to proceed as you wish. If there are any other individuals involved in the inheritance, you should first agree with each other on that decision. You can then file a petition requesting the court to allow you to sell the property.

You should then consider how much tax you are to pay. This will be paid against the capital gains or losses resulting from the sale of the house. You can call us now to undertake a smooth and legitimate sale of your home. We are local, and we buy houses here in [city] [state_ab], and we know the market here better than anyone else. If you are still asking yourself what are the tax consequences when selling a house I inherited in [city], then we would be happy to discuss it with you in more detail.

We Are Local [city] [state_ab] Home Buyers

Selling an inherited house can relieve you of quite a burden. In addition to that, selling the property to an investor is a basic, simple, and fast process. If you need to sell your house in [city] [state_ab], just contact us for inquiries on how to go about things. When selling your home in [city] [state_ab], we will be glad to help.

The post Tax Consequences When Selling An Inherited House first appeared on Cornerstone Homebuyers.

Foreclosures are not a sudden event; there is a lot of warning before the lender implements the final procedure. Putting your head in the sand and hiding from your problems is the worst thing you could do regarding financial issues. Instead, it is always better to face your problems head-on and make the best choice by understanding all of your options. The time to take action is when you receive the first notification. Otherwise, the consequences of your failure to act are heavy.

Not only will you be evicted from the property at a moment’s notice, which is in itself a stressful way to live day-to-day, you will also lose any equity in the home. Regrettably, you could still be on the hook for any remaining debt on the mortgage as well. As for the damage to your credit, the misery of foreclosure simply does not end there; it reaches beyond your credit history and could harm your employment opportunities. A foreclosure can also have adverse effects on your housing options, and you won’t be able to qualify for a Fannie Mae mortgage for at least seven years.

Read on as we explore five ways you can stop foreclosure in [state].

Negotiate

Negotiating with the lender before proceedings begin is one way to stop foreclosure in Florida if there is still enough time. Your lender may be more open to negotiating with you than you may believe. As foreclosures can take years to finalize, an average of 830 days, lenders have a great deal of leeway in giving leniency to borrowers to reorganize their finances and overcome temporary setbacks when possible. There are also programs in place that you may qualify for that could offer assistance in times of hardship.

Short Sale

If you have defaulted on your mortgage loan, a short sale is another way you can stop foreclosure in Florida. With the lender’s approval, the home is sold at current market value, even if that is far below the amount still owed on the mortgage. However, a short sale is impactful on your credit score, and you may not have the immediate ability to attain another mortgage. You may also need to consult your tax professional, as second mortgages for uses other than home improvement may now be considered taxable income.

Bankruptcy

Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in Florida. For example, suppose you have overcome the circumstances that interrupted your income stream, and you’re now able to arrange a chapter 13. In that case, you will be restructuring your debt, making your regular mortgage payments along with payments on the arrearage, typically for a period of up to five years. Chapter 7, on the other hand, will give you a little breather while you stall payments temporarily and play catch up.

Deed In Lieu

Signing the mortgage back over to the lender and walking away, known as a deed in lieu, is another way you can stop foreclosure in Florida, satisfying the loan. However, you should be aware that junior liens, such as equity loans attached to the property through the deed, are undesirable to the lender and may prevent you from taking this route. In this scenario, foreclosure is more favorable for the lender because it will wipe out those existing debts. A lender will not act upon this option without your reaching out in writing and stating to the lender that you’re making this offer voluntarily.

Cornerstone Homebuyers

Selling your home directly to Cornerstone Homebuyers may be the best way you can stop foreclosure in Florida. It is crucial that whatever action you intend to take is taken quickly to avoid paying the heavy penalties associated with a foreclosure for years to come, and Cornerstone Homebuyers is poised to step in and help you immediately. We will provide you with a guaranteed closing date, often in a matter of a few weeks or less. If you are not ready to move, we are happy to arrange a leaseback at fair terms; the direct buyers at Cornerstone Homebuyers will work with you to help make the transition as smooth as possible for you and your family. Selling directly to Cornerstone Homebuyers is a quick and easy process; you avoid paying high real estate commissions, the expenses of listing and marketing the property, the hassles of showings, and there is no need to worry about making any repairs. 

A direct buyer from Cornerstone Homebuyers will lay out all of the numbers for you because our goal is to be certain you agree that our offer is fair. We do this at Cornerstone Homebuyers because we want you to feel good about the deal long after closing. Why not see how much Cornerstone Homebuyers will pay for your house right now, as-is for cash? Contact Cornerstone Homebuyers today at (305) 615-2888.

The post 5 Ways to Stop Foreclosure in Florida first appeared on Cornerstone Homebuyers.

Inheriting a property after losing a family member or beloved friend can be an overwhelming experience. With or without a will, estates must go through the process of probate. Naturally, if there is a will, the process is much smoother. The home would be in perfect condition in an ideal world, with the mortgage paid off and no debts filed as liens against the property. Typically, however, most properties fall short of this mark. 

The financial obligations assigned to the property carry over to the beneficiaries, along with the mortgage, insurance, taxes, and any monthly bills. The expenses which accumulate during the probate process are a heavy financial burden. Often, selling the property as quickly as possible is the best solution for all involved. Read on as we explore five tips for selling a probate property in Florida.

Probate Timeline

In essence, probate is the process of the prooving of the will; the courts ensure that the deceased’s instruction for the disbursement of their property is completed and require that a judge oversee the process. Because of the legalities involved, our first tip for selling a probate property in Florida is to understand that when a property is in probate, you will need to prepare for a lengthy period before the beneficiaries can sell the property. You will also need to keep a close eye on deadlines, carefully complete any paperwork, and follow the rules and order of operations set out by the probate court.

FSBO

Suppose you’re not concerned about investing money into the property to prep it for sale yourself, making any necessary repairs. In that case, our next tip for selling a probate property in Florida is to consider selling it as an FSBO or for sale by the owner. Should you follow this course, be sure you understand the laws surrounding disclosure. Even if there’s an issue with the home you aren’t aware of, the buyers could take legal action against you as the seller in the future. Finally, to determine a realistic price point, you should compare similar properties nearby that have recently sold. Just don’t skip on the high-quality photography and staging the home, as the tech-savvy buyers of today will typically scroll by properties that don’t present well online.

Owner Financing

Now, for those with no time constraints, a great tip for selling a probate property in Florida is to consider offering owner financing. You’ll need to do the same prep and repair work and are still under the same risks from disclosure after the sale. In this arrangement, you’ll be offering the opportunity of homeownership to buyers who may not be quite ready to assume a conventional mortgage. As they save towards their down payment and get their credit prepared for the lender’s approval, you’ll be making a higher profit on the property. In addition, for the courtesy of taking your home off of the market for this period, you can set the sale price higher than the current market because you risk the market taking off and potentially selling at below market value in the future. 

Agent

If the property is in great shape or can afford to make all of the repairs required to bring it up to par, selling a probate property in Florida with a real estate agent may be your best route. Even after the commissions, broker fees, and closing costs, some properties are better suited to this method of home sales and can provide the beneficiaries with a sizeable profit. Just remember, a real estate agent cannot provide you with the closing date for sale or even guarantee the property will sell; if you or the other beneficiaries are in a financial bind, this may not be a suitable sales method.

Direct Sale

Our final tip for selling a probate property in Florida is to consider making a direct sale; you’ll save valuable time with a guaranteed closing date lined up. As professional investors themselves, direct buyers don’t work on commissions; instead, they work full-time buying properties for cash, in as-is condition and rehabilitating them, one by one in Florida. As a result, direct buyers know the current real estate market exceptionally well. After taking the time to talk to you about your property and any hurdles that you’re facing with the probate property, a direct buyer will help you understand your options so you can make an educated decision. To this end, they can provide you with a realistic estimate detailing how much you would profit from each type of sale vs. the offer for a direct sale, which you’ll agree is fair. 

Doesn’t it make sense to talk to a direct buyer like those at [company] before you decide on one of the more common methods of selling a [state] property? Contact Cornerstone Homebuyers today at (305) 615-2888.

The post 5 Tips for Selling a Probate Property in Florida first appeared on Cornerstone Homebuyers.

What Is A Foreclosure In Florida?

In simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source).  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you. 

A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.

Depending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website.

What Is A Short Sale?

In a short sale, the home is still owned by the borrower.

The definition of a short sale is… “A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt” (source: Wikipedia)

In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.

This option typically takes some time, as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.

Short Sale vs Foreclosure – Your Options

While both options can have ramifications, a short sale often has less of an impact on the borrower’s creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.

Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.

As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option…  selling your Florida house fast  )is an easy choice for a borrower having troubles paying their mortgage on time.

Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time-consuming process of conducting a foreclosure.

Our suggestion is always this.

1. Talk with your lender and discuss ways that they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page and we’ll discuss your situation.
2. Attempt a short sale or other programs your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc.
3. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like [company] to sell your house fast for an all-cash offer. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website over here >>
4. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.

By knowing your options, you may be able to dodge a significant impact on your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.

Have a pending foreclosure?  We’d like to make you a fair all-cash offer on your house.

Give us a call anytime at (305) 615-2888 or
fill out the form on this website today! >>

The post Short Sale vs Foreclosure – What’s the Difference in Florida? first appeared on Cornerstone Homebuyers.