Phoenix Realty Advisors

We Help Homeowners Save Their Home From Foreclosure. Call: 516-744-1222

? As a homeowner, ignoring the foreclosure and just walking away is absolutely the wrong approach to take with many long term ramifications. Many people believe they have no options available to them because their home is extremely deteriorated and they know that the value is not what it once was. However, if you simply give up and allow the bank to complete the foreclosure, the debt and headaches from the foreclosure... can haunt you long after the sale of your home. If you choose to just walk away, depending on the loan agreement with the bank, they can elect to go after you personally to seek additional losses they have suffered. The majority of mortgages that homeowners have are typically recourse loans. What this means is that in the event of a default, the bank can seek deficiency judgement against the homeowner personally after the sale is completed. There are also non-recourse loans which prohibits banks to seek any additional liquidation damages but not as common. Additionally, the blemish of a foreclosure on your credit report can be felt long after. It typically takes a period of 7 years for a homeowner to qualify for any type of financing again after a foreclosure is reported on their credit report. This can often be a huge blocking issue for anybody trying to restart their life. When you choose to be proactive and seek a foreclosure prevention solution, you can either save your home or choose to walk away on your own terms, allowing you to avoid further complications down the road. If you’re considering walking away from your home or if you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

As far as the IRS is concerned, a foreclosure is treated the same was as a property sale. The bottom line, once the property was yours and now you no longer own it. The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence, debt reduced through mortgage restructuring and forgiven mortgage debt in connection with a foreclosure qualify for... this relief. It's important to note that the exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. Where there's a profit from the sale, the event can trigger a capital gain and in some cases, you might owe income tax on the amount of any part of the mortgage debt that's been forgiven or canceled. Also if there is profit in the sale, the income is subject to either short term or long term capital gains tax depending on how long the home was owned. You could potentially be exempt from paying any capital gains if you meet certain criteria such as the home being your primary residence or if you lived in the home 2 out of the past 5 years. The IRS rules are constantly changing so we often have our clients speak with our accounting staff so they can analyze their specific scenario and understand what their personal liability will be. If you have questions about tax liabilities arising from foreclosure or if you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

How Fast Can a Lender Take Back a Foreclosed Home? In New York once a homeowner misses three consecutive mortgage payments they are served with a 90-day pre-foreclosure notice. After this, the lender files an official Lis pendens on the home which officially starts the foreclosure proceedings. From the filing, you have 20 days to answer the complaint if it's served in person or 30 days if you are served by mail. ... If no answer is received, then a mandatory settlement conference is scheduled. This is your second and final chance to answer the complaint and figure out a plan to bring your mortgage current. If the complaint goes unanswered, than a bank referee is appointed who will be in charge of handling the sale of the property through the auction. The referee also decides the final amount owed to the lender so they can finalize the price around the sale of the home. The lender then makes a motion for judgment foreclosure and sale which if granted, sets the actual sale date of the property. The final step is the actual auction of the property in the court house. The property is either sold to the highest bidder of the auction or if no bids are received, the lender retains ownership of the property. All in all, the process is ramping up tremendously as there is new case law being passed in favor of speeding up foreclosures. Depending on if a homeowner is proactive or chooses to be passive, an uncontested foreclosure can be completed in less than 244 days from the initial non-payment. If you’ve missed a few mortgage payments or If you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

Can a Home Be Sold or Transferred to a Family Member to Avoid Foreclosure? There are many factors to consider when figuring out how to sell your home in foreclosure and to whom. Factors such as current market valuation, amount of the principle mortgage, the amount in arrears (the debt that is overdue) and the current condition of the home. With that being said, if there is ample equity in the property, meaning your home is worth more than what you owe to the bank, then yes ...you can sell your home to avoid losing it to the bank. However, in many cases the home is "upside down" or the homeowner owes more to the bank than what the property is actually worth in the current market. It's important to remember that a home requires a ton of maintenance. It’s a common trait that along with not paying the mortgage, many homeowners don't keep up with maintaining the the house, thus the value deteriorates even further. In this more common scenario, the homeowner must choose another foreclosure prevention method as a traditional sale on the market would not cover the amount owed to the bank. Now if you transfer your property to a family member, this actually could make matters worse for you when trying to stop the foreclosure. Remember, when you own a home you sign the deed as well a promissory note to the bank that you must repay. Transferring ownership of the property does not release you from the obligation on the mortgage of the house. Furthermore, bankruptcy is can be an option that can be utilized in order to stop a foreclosure sale and buy some time to achieve the desired foreclosure prevention solution but by transferring a deed to another family member, you risk complicating the situation and may make filing bankruptcy near impossible. With any of these options, it's really important to talk to an advisor who can review all of the different options and help you pick what makes the most sense for you. If you’re thinking about transferring your property to a new owner or If you’re facing a foreclosure and would like to know the steps you can take to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

With so much misinformation floating out there around foreclosure solutions, today we wanted to share some common solutions to help clear up the misconceptions. When homeowners default on their mortgage payment or fall behind there are several solutions that can be pursued, such as loan modifications, foreclosure assistance programs, walking away from the home and other options, like a short sale or a deed in lieu of foreclosure. The most sought after solution is to save you...Continue reading

We Help Homeowners Save Their Home From Foreclosure. Call: 516-744-1222

? As a homeowner, ignoring the foreclosure and just walking away is absolutely the wrong approach to take with many long term ramifications. Many people believe they have no options available to them because their home is extremely deteriorated and they know that the value is not what it once was. However, if you simply give up and allow the bank to complete the foreclosure, the debt and headaches from the foreclosure... can haunt you long after the sale of your home. If you choose to just walk away, depending on the loan agreement with the bank, they can elect to go after you personally to seek additional losses they have suffered. The majority of mortgages that homeowners have are typically recourse loans. What this means is that in the event of a default, the bank can seek deficiency judgement against the homeowner personally after the sale is completed. There are also non-recourse loans which prohibits banks to seek any additional liquidation damages but not as common. Additionally, the blemish of a foreclosure on your credit report can be felt long after. It typically takes a period of 7 years for a homeowner to qualify for any type of financing again after a foreclosure is reported on their credit report. This can often be a huge blocking issue for anybody trying to restart their life. When you choose to be proactive and seek a foreclosure prevention solution, you can either save your home or choose to walk away on your own terms, allowing you to avoid further complications down the road. If you’re considering walking away from your home or if you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

As far as the IRS is concerned, a foreclosure is treated the same was as a property sale. The bottom line, once the property was yours and now you no longer own it. The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence, debt reduced through mortgage restructuring and forgiven mortgage debt in connection with a foreclosure qualify for... this relief. It's important to note that the exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition. Where there's a profit from the sale, the event can trigger a capital gain and in some cases, you might owe income tax on the amount of any part of the mortgage debt that's been forgiven or canceled. Also if there is profit in the sale, the income is subject to either short term or long term capital gains tax depending on how long the home was owned. You could potentially be exempt from paying any capital gains if you meet certain criteria such as the home being your primary residence or if you lived in the home 2 out of the past 5 years. The IRS rules are constantly changing so we often have our clients speak with our accounting staff so they can analyze their specific scenario and understand what their personal liability will be. If you have questions about tax liabilities arising from foreclosure or if you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

How Fast Can a Lender Take Back a Foreclosed Home? In New York once a homeowner misses three consecutive mortgage payments they are served with a 90-day pre-foreclosure notice. After this, the lender files an official Lis pendens on the home which officially starts the foreclosure proceedings. From the filing, you have 20 days to answer the complaint if it's served in person or 30 days if you are served by mail. ... If no answer is received, then a mandatory settlement conference is scheduled. This is your second and final chance to answer the complaint and figure out a plan to bring your mortgage current. If the complaint goes unanswered, than a bank referee is appointed who will be in charge of handling the sale of the property through the auction. The referee also decides the final amount owed to the lender so they can finalize the price around the sale of the home. The lender then makes a motion for judgment foreclosure and sale which if granted, sets the actual sale date of the property. The final step is the actual auction of the property in the court house. The property is either sold to the highest bidder of the auction or if no bids are received, the lender retains ownership of the property. All in all, the process is ramping up tremendously as there is new case law being passed in favor of speeding up foreclosures. Depending on if a homeowner is proactive or chooses to be passive, an uncontested foreclosure can be completed in less than 244 days from the initial non-payment. If you’ve missed a few mortgage payments or If you’re facing a foreclosure and would like to have steps you can take immediately to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

Can a Home Be Sold or Transferred to a Family Member to Avoid Foreclosure? There are many factors to consider when figuring out how to sell your home in foreclosure and to whom. Factors such as current market valuation, amount of the principle mortgage, the amount in arrears (the debt that is overdue) and the current condition of the home. With that being said, if there is ample equity in the property, meaning your home is worth more than what you owe to the bank, then yes ...you can sell your home to avoid losing it to the bank. However, in many cases the home is "upside down" or the homeowner owes more to the bank than what the property is actually worth in the current market. It's important to remember that a home requires a ton of maintenance. It’s a common trait that along with not paying the mortgage, many homeowners don't keep up with maintaining the the house, thus the value deteriorates even further. In this more common scenario, the homeowner must choose another foreclosure prevention method as a traditional sale on the market would not cover the amount owed to the bank. Now if you transfer your property to a family member, this actually could make matters worse for you when trying to stop the foreclosure. Remember, when you own a home you sign the deed as well a promissory note to the bank that you must repay. Transferring ownership of the property does not release you from the obligation on the mortgage of the house. Furthermore, bankruptcy is can be an option that can be utilized in order to stop a foreclosure sale and buy some time to achieve the desired foreclosure prevention solution but by transferring a deed to another family member, you risk complicating the situation and may make filing bankruptcy near impossible. With any of these options, it's really important to talk to an advisor who can review all of the different options and help you pick what makes the most sense for you. If you’re thinking about transferring your property to a new owner or If you’re facing a foreclosure and would like to know the steps you can take to stop the process, consider reading our free guide: https://phoenixrealtyadvisor.com/lp/stop-foreclosure-ebook

With so much misinformation floating out there around foreclosure solutions, today we wanted to share some common solutions to help clear up the misconceptions. When homeowners default on their mortgage payment or fall behind there are several solutions that can be pursued, such as loan modifications, foreclosure assistance programs, walking away from the home and other options, like a short sale or a deed in lieu of foreclosure. The most sought after solution is to save you...Continue reading