When is it okay to walk away from your home?

Every Realtor Agent Should Read This

by Fred Solomon

Give this info to your homeowner who is going through this & watch what happens to your credibility.  Feel free to refer your buyers to Solomon Financial Mortgage to do their loans.  I give free seminars on this above info.

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 4 articles.  If you or someone you know is going through this, please print out these articles & read them.  If you have any questions after reading these 4 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.

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!

Learn the following words if you or someone you know is going thru this – FULL SATISFACTION & RELEASE OF LIEN & how to negotiate with the lender to ask for & receive a Full Satisfaction & Release.

Here are those 4 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 –

For Realtors – A new way to beat the banks at their own game – http://www.trulia.com/blog/chris_sorensen/2011/01/stop_the_trustee_sale-get_your_short_sale_completed

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 debthttp://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 homehttp://online.wsj.com/article/SB10001424052748703795004575087843144657512.html?mod=djemRealEstate_h

Pay attention to what is written above here & confirm this info with your CPA or tax advisor who understands Real Estate.  Too many homeowners are just flat out not told or UNAWARE of any of this & there are situations where it may make more sense (tax wise, not necessarily credit wise) to let your property go into Foreclosure & be sold @ the Trustee Sale (especially if the foreclosing lender is purchase money & a non-recourse loan).  You heard it here first & I have mentioned this on my radio program for the last 2-3 years.

Give this info to your homeowner who is going thru this & watch what happens to your credibility.  Feel free to refer your buyers to me to do their loans.  I give free seminars on this above information.

Contact Fred:

fred@sfmdirect.com

800-811-7709

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About fredsolomon
FRED SOLOMON has been speaking to audiences for over 20 years helping people improve their financial decisions, real estate strategies and overall lives.. Many ordinary people have learned from Fred’s strategies and success tips. Fred Solomon is a motivational speaker, spokesperson and financial coach on real estate and mortgage trends, how to make money in this economy, helping others or profiting in foreclosures and short sales. Fred Solomon is featured on the investment radio talk show, “The Solomon Free Money Hour” which has aired for over three and a half years of broadcasts on CBS Radio stations and Angels AM 830 News Radio. His fun, upbeat, positive and educational radio talk show also streams live anywhere in the world (www.am830.net). Fred offers in-depth knowledge on finance and real estate investors, realtors, CPA’s and anyone interested in learning proper home loan and real estate strategies and trends. Fred grew up in the San Fernando Valley, graduated from San Diego State in 1990 with a BS in Finance and emphasis in Real Estate and immediately became a broker at the age of 22. Fred has been a licensed CA Dept of Real Estate Broker for 19 years. His experience includes residential 1031 exchanges, commercial real estate, multi-family apartments, representing buyers and sellers for the first time investor to the seasoned investor. Fred and his wife and co-founder, Lisa Solomon are co-hosts of The Solomon FREE Money Hour Mortgage Talk Radio.

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