Facing Foreclosure? What you should know.

I want to MAKE IT VERY CLEAR that I am NOT a CPA or Real Estate Tax Attorney.  However, my father is a CPA (formerly on many of our radio shows and speaking engagements) and my brother works in that line of work as well.  I ALWAYS say please consult with your own CPA and  there are some of them who are giving out incorrect info (confirmed from my father from Solomon, Ross, Grey and Company – specializing in Real Estate).

When is it ok to walk away from your home?   Whether it is a primary, vacation, or investment property, you need to know how to protect yourself from the lender coming after you personally for any forgiveness of debt or the IRS coming after you for any potential tax consequences from a short sale or foreclosure, understanding insolvency & how you can avoid any federal or state taxes, understanding BK & Foreclosure laws, and how to use this info when negotiating with the bank (if you are going thru that process).

When considering what you should do if you don’t qualify for a loan modification, you have to be aware of potential tax consequences of a short sale, legal ramifications (i.e. signing a promissory note where these lenders may have the right to come after you to collect), & know when it is a good time or not to walk away from a home that you own.

Before you list your home for sale, you need to be aware of these 3 articles.  If you or someone you know is going through this, please print out these articles and read them.  If you have any questions after reading these 3 articles, talk to a CPA who understands Real Estate.  We are not allowed to give out Tax or Legal advice, but I can certainly tell you what I would do if I was in your situation.  In fact, my father is a CPA and my brother also happens to work with him.  There are a lot of things that need to be considered.  Please consult with your own CPA or Attorney.

Here are those 3 articles.  If you would like to talk to us about listing a property for sale & you owe more than what it is worth, do yourself a favor and check out these articles and then give us a call.

Tax Consequences of a Short Sale or Foreclosure – need some advice?http://www.signonsandiego.com/news/2010/mar/03/hefty-tax-bill-may-hit-those-who-lost-home/

California won’t tax forgiven home debt – http://www.sacbee.com/2010/04/09/2666095/california-wont-tax-forgiven-home.html

Another good article to advise your friends of when it is ok to walk away from their home – http://online.wsj.com/article/SB10001424052748703795004575087843144657512.html?mod=djemRealEstate_h

However, if you are insolvent, that will eliminate any tax consequences (please consult with your CPA).  Please do not sign Promissory Notes in your Short Sale package.  If you see one in the Short Sale package, don’t sign it, crumple it up & use it as practice for your basketball shooting skills.  The lenders don’t catch it a majority of the time.  By signing the promissory note, you are authorizing the bank to come after you for your assets (possibly record a lien on any new real estate you purchase down the road).  It is not good. YOU HAVE BEEN WARNED!

Homeowners facing Foreclosure or Short Sale, Realtors who want to help protect homeowners from the lenders coming after them for the Forgiveness of Debt (down the road) & possible potential law suits for the Realtors for NOT notifying the homeowner that the lender may do that.

My next workshop is Saturday, November 13 · 10:00am – 1:00pm

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The Solomon Free Money Hour Mortgage and Real Estate Show is live Saturdays: 6-7pm PST on KFWB 980 News Talk by hosts Lisa and Fred Solomon

Industry leading The Solomon Free Money Hour Mortgage and Real Estate Show is live Saturdays: 6-7pm PST on KFWB News Talk AM 980 by hosts Lisa and Fred Solomon.  Solomon Financial offers industry knowledge and is known for its no points, no fees, and no closing costs loan programs.

KFWB News Radio 980

They are ranked highly on Google for reviewing good faith estimates for free. This popular show offers assistance and solve your everyday problems over the air.

The goal of The Solomon Free Money Hour is to educate consumers, homeowners, investors, CPA‘s, real estate buyers, sellers, mortgage and real estate professionals through its affiliate company:  Solomon Financial Mortgage.  A+ rated on the Better Business Bureau, it is easy to see why their radio show is popular among consumers.

Topics included in their shows are what to do when borrowing and investing, the best loan programs in today’s marketplace, what loan officer’s don’t want you to know, mortgage relief help, how to buy or sell your home with the least amount of stress, how to protect yourself, when is a good time to purchase, first time buyers’ assistance and other popular topics.  Guest speakers such as real estate attorneys, investors, Realtors, CPA’s, and consumers have the opportunity to give the audience an honest perspective.

Fred Solomon, Jr. and Lisa Solomon are co-founders of Solomon Financial and authors of real estate books including Put Your Money Where Your House Is: The Definitive Guide to Smart Real Estate Investing.  Collaboratively, they have aired over 270 live radio shows.

Fred Solomon is now booking public appearances and keynote speaker engagements or welcomes new radio show guests.  Solomon Financial and team are glad to help with a free consultation on your mortgage, refinance or purchase.

Website: http://www.FreeMoneyHour.com

Tel: (800) 811-7709 or e-mail info@sfmdirect.com

True Zero Cost Loan Company helps consumers save millions!

Solomon Financial Mortgage a zero cost loan company based out of Newport Beach, California,  pledges to serve our clients with honest, up front, ethical information on matters pertaining to mortgage, real estate, investment and real estate finance. We pride ourselves in giving you the best consultation as if we were consulting our own family members. We are here to help you! We are A+ rated on the Better Business Bureau (the highest rating you can get) and celebrating 20+ years. Solomon Financial has zero complaints with the DRE (Department of Real Estate).

The information, options and strategies our consultants and team members provide are based on your individual assessments, your long or short-term goals and your financial portfolio in today’s market.