Dear Clients, Someone whom I don't even know wrote to me yesterday stating I did not know what I was talking about in reference to short sales. He claimed I was wrong in my last email to you about short sale deficiencies. However, I am not. The 1099c form is a Cancellation of Debt and it is provided to the owner at closing on short sales. This cancellation of debt is a gift when the cancellation is executed, however, the seller of a short sale will still may need to pay the taxes owed on the amount of the debt forgiven.
An example of this is below:
Do you know about the 1099-C form called the cancellation of debt?
When a home owner sells his or her property using a short sale a 1099-C is generated.The IRS issued a news release on Sept 17, 2007 trying to clarify the 1099-C in regards to foreclosures. Many homeowners are unaware of this situation and feel once the property is gone all financial obligations are wiped out. That may or may not be a correct assumption.
This will illustrate how the IRS determines your potential liability in a short sale or a foreclosure.
How to figure cancellation of debt income
1. Enter the total amount of the debt canceled/forgiven. ____________________
2. Enter the fair market value of the property from Form 1099-C, box 7. ____________________
3. Subtract line 2 from line 1. If less than zero, enter zero. ____________________
Keep in mind that #1 will differ between a foreclosure and a short sale. The short sale amount is the amount the lender has agreed to forgive from the sale of your home prior to being foreclosed on and sold at auction or thereafter. If #3 is zero or less than zero than there is not a taxable amount.
If we take a look at particular numbers for an example. Let's say Mr. and Mrs. John Doe. Homeowner, owed $300,000 on their mortgage balance and the lender agreed to a short sale of $250,000, the forgiven amount is $50,000 not $300,000, the fair market value of the property is $360,000. If you enter the numbers above you'll see that #3 is a negative number being less than zero therefore, not a taxable amount. Now, if you look at this example without having sold via a short sale than you would have a taxable amount as the debt canceled/forgiven would have been $300,000 subtract the FMV of $360,000 and that leaves $60,000 in taxable income.
Amazingly what is so critical is in how the lender reports on the 1099C. The IRS is urging borrowers to look closely at the amount of debt forgiven and what value is listed for their home. If a 1099C is received from the lender and it is in error, the homeowner must contact their lender for corrections. It is important to review the 1099C to determine accuracy.
This is why it is important to use a qualified Realtor for your next purchase who has the experience and expertise to guide a client through a short sale process. I have attached the 1099c form to this email for your review. Should you have any questions at all, please feel free to give me a call.
There were 101 homes that sold in Walton County in the month of August. This is up over last year for the same period when there were 99. This slight increase can be attributed to the $8,000 first time home buyer's credit as well as reduced prices and foreclosures that have hit the marketplace.
Condo sales were also up for the month of August. There were 59 sales in the month of August compared to last year same period of 43 sales. Condos continue to be a risky purchase in some complexes. Not only do you have to qualify as a buyer, but the complex cannot have more than 15% of owners who are not current with their dues. Cash buyers have no problems in this area. However, if buying a condo on a mortgage you will need a minimum of 25% down and an excellent credit score.
Residential Lots and there are plenty of them.....are behind in sales for the month of August. Lots are plentiful and still going down in price. In the month of August there were only 58 lots that sold. Last year in August there were 89 lots that sold.
For the very latest updates in the Panhandle on foreclosures or distressed properties, please contact me to have your name added to my Monday morning report at kelly@kellykleinsoldmine.com
For the very latest information on how to bid on a short sale, REO, or foreclosured property you will need my guidance.
Remember that serious buyers make serious offers. Recently I have run into multiple offer situations where properties are now selling for over the list price. Make sure you are in the now and have all information readily available to make a smart buying decision.
With the real estate market down, have you considered how it offers a great opportunity to "move up" because the values of higher-priced homes have come down more than yours has?
I also wanted to say that although the market is slow, I'm still doing well. The reason? Integrity, experience, and I use all the latest high-tech tools to maximize a home's market exposure. In addition, I've come to the conclusion that the best solution to a softer market is harder work. So if you've considered selling, or if you hear that any family, friends or neighbors are, please call or email me any time.
Counties: Santa Rosa, Okaloosa, Walton, and Bay County Florida
Cities: Pensacola, Gulf Breeze, Navarre, Ft. Walton Beach, Destin, Niceville, Crestview, Destin, Sandestin, Miramar Beach, Santa Rosa Beach, Freeport, Panama City Beach, FL.
The most comprehensive Real Estate service center for Destin, Florida. Our Real Estate Services cover the areas of Destin, Santa Rosa Beach, Niceville and Panama City Beach. Make the most exciting investment in Real Estate In Destin FL, Santa Rosa Beach FL, Waterfront Properties, and Panama City Beach FL Real Estate or purchase a Niceville FL Home For Sale, it will be a satisfactory and rewarding experience for you. Feel free to browse through our listings of the finest Panama City Beach FL Homes For Sale today!
There were 17 new home sales in the month of July in Walton County. This is down 26% from last year's figure.
However, there were 85 sales of resale homes in the month of July. This was in increase of 7.59% and great news for our local economy. Home sales have picked up and the month of August is starting off with a bang. Buyers are back and they are buying our lowest priced products left and right. As it should be. Buy low and sell high.
CONDOS
10 brand new condos sold in the month of July compared with same period last year of only 6.
78 resales sold in the condo category. This was an increase of 14.71% over same period last year.
Condos remain to be a popular product in our resort destination. However, once easy to finance...financing today has become more difficult. You had better come with a 25% downpayment, cash, and a good credit score in order to qualify.
RESIDENTIAL LOTS
We have plenty available in this category. Good news is that 82 of them sold in the month of July. This is up 10.81% over last year same period sales.
LIS PENDENS
Hold on to your hats. There were 192 Lis Pendens filed in the month of July. A 22% increase over last year's figures. This means there will be more good deals coming on the market soon in the way of a short sale or foreclosure.
When you want more information and advice, please come to the source who can help. I look forward to hearing from you. Email me at Kelly@KellyKleinSoldMine.com to be placed on my weekly hot sheet or visit me at my website at www.KellyKleinSoldMine.com
I've always made a point of using the latest technologies to benefit my clients. However, I can say that no matter how much some things change, others never change. In real estate, the best buyer agents have always been good listeners who are responsive to their clients' needs. And there's no substitute for the integrity that lets you develop an excellent professional network so you can provide your clients with comprehensive service.
As a buyer specialist, I use the latest technologies to enhance the people skills I've been developing all my life. So when you decide to buy, please call or email me. My services are paid for by the seller, and chances are that I'll save you considerable time, money, energy and hassle.
Kelly Klein, Broker/Agent
Red Hot Realty
Servicing Destin to Panama City Beach, FL
Make the most exciting investment in Real Estate In Destin FL, Santa Rosa Beach FL, Waterfront Properties, and Panama City Beach FL Real Estate or purchase a Niceville FL Home For Sale, it will be a satisfactory and rewarding experience for you. Feel free to browse through our listings of the finest Panama City Beach FL Homes For Sale today!
If you have not yet seen the latest Foreclosure and Short Sale Lists, then visit my website at www.KellyKleinSoldMine.com to view the very latest lists. You can also join my email list and have this list directly mailed to you on a weekly basis if you prefer. Just email me at Kelly@KellyKleinSoldMine.com
This week's report also includes Waterfront Condos that are in the short sale process. Although these are not for the buyer who wants to close quickly, they can be great deals for a patient buyer.
How do millionaires get rich? They buy and sell real estate. It is no secret. It is just timing the market right. This is your opportunity to become rich too. Buy low, sell high. Call me for buyer's representation. I will help you through the process. We do not lack an inventory of foreclosures in our market area. Take a look at what is being offered today. If you know of anyone looking to be a part of this weekly email list, please provide me with their first name, last name and email address so I can include them in this report.
There are many reasons why I enjoy helping people with their real estate needs. First and foremost is the deep satisfaction I get from helping them realize their dreams and get through the major transition that accompanies buying, selling and moving. That's why, in my ongoing commitment to providing first-class service, I can confidently say that if I can't answer a specific home-related question you have, I'm a phone call or email away from an expert in my professional network who can. So I know you're probably not ready to sell yet, but if you have any home-related questions, or if you have any family and friends who do, please don't hesitate to contact me.
Kelly Klein, Broker/Agent
Red Hot Realty
850-420-2480
I offer you everything you'll need to buy or sell a home, as well as learn about the market value of homes you may own in the area. My objective is to provide you with superior real estate services for various cities in Florida at all times. Destin, Santa Rosa Beach, Ft. Walton Beach, Panama City Beach, Florida
I can send you a full report, but below are my comments.
Walton County Florida ranks third in the whole State of Florida for the lowest mileage rates in the State. It is a beautiful county the size of the State of Rhode Island with 50,000 permanent residents. The county stretches from the Gulf of Mexico to the Alabama border to our north. If you have never been here, you should place this county on your must see list. The diversity of the county from rich Horse Farms in the North and rural living to the beaches of South Walton are something to cherish. I love living here where the people are friendly and happy all of the year. Why not? It is one of the most beautiful places to ever live. Come and see our beautiful sandy white beaches and the beautiful color of the Gulf of Mexico contrasting with a blue, blue sky. When you do come, make sure you look me up for a full tour.
In June, we had 26 new home sales compared with same period last year of 28.
Resales are up. This year we had 95 compared to 87 resales last year in the home category. What is selling? Bargains! Lots of foreclosures and short sales are in the marketplace and people are buying them up. You can get a weekly list of these from me if you like by emailing me your request to Kelly@KellyKleinSoldMine.com
63 Condos sold in the month of June. Financing can be tricky on resort condos, but I have resources who can finance these with 75% down and some terrific rates all under 6%. Last year same period only 56 condos sold.
Even lots are selling again. There were 91 lots sold in the month of June compared to just 74 last year.
With sales up and inventory slowly coming down, don't wait too long to own a piece of paradise. Prices I believe are at their lowest now and will soon go back up again. It is a great time to invest in a property in Florida's beautiful Gulf Coast region.
My Real Estate Services cover the areas of Destin, Santa Rosa Beach, Niceville and Panama City Beach. Make the most exciting investment in Real Estate In Destin FL, Santa Rosa Beach FL, Waterfront Properties, and Panama City Beach FL Real Estate or purchase a Niceville FL Home For Sale, it will be a satisfactory and rewarding experience for you. Feel free to browse through our listings of the finest Panama City Beach FL Homes For Sale today!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
With the real estate market down, have you considered how it offers a great opportunity to "move up" because the values of higher-priced homes have come down more than yours has? 
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