Welcome to a WARM Autumn! It seems that we are inching towards cooler winter weather. We truly experienced such a pleasant warm Summer that we are curious to see what the Winter may have in store for us? We wanted to take this opportunity to keep in touch as well as to update you on all on the many changes going on in the Real Estate and Mortgage World. Unfortunately the media is not reflecting important detailed information. It keeps changing every day and the large news media channels are making generalizations, as if what they are reporting applies to every single state.
So to make a long story short, we have summarized the facts as it is applicable to us Coloradoans. Many of you have contacted us regarding Bank of America and several other of the country's large mortgage servicers that made announcements last week to halt all foreclosure actions in all 50 states - This is True, but only in states where the court system handles foreclosure actions. Please keep in mind that in the state of Colorado we have a "Non Judicial" foreclosure process that is handled by a public trustee, so we are not as impacted as states like Florida and Connecticut for example that utilize the "Judicial process" (courts) for their foreclosure process, so these states and others will experience a much different impact.
Mortgage interest rates continue to remain at record lows. The average rate for a 30-year, fixed-rate mortgage for the week ending last Thursday was 4.19%, and 3.62% for a 15-year-fixed, according to Freddie Mac. In January, the average 30-year-fixed rate was 5.09%; two years ago, rates hovered at about 6%. If you were to purchase a median-priced home ($178,600) at last week's 4.19% rate for a 30-year fixed-rate mortgage, your monthly payment (P&I) would be $872, according to Bankrate.com. Park Avenue can help you to take advantage of this once in a life time opportunity to consider a re-finance or to purchase a home or investment property.
Another subject that continues to be misunderstood and represented, or should I say forgotten by the media is The Mortgage Debt Relief Act of 2007 that has been extended and is in effect until 2012 to ease the burden of taxpayers in default, foreclosure or repossession. Debt forgiveness (under this act) becomes a Cancellation of Debt. In simple terms and keep in mind it varies by state and situation but there are a couple of situations where the tax liabilities may be set aside and no tax liability exists: 1) if the home owner has a hardship and documents it with the lender and a modification is denied. 2) An investor is insolvent and files with the IRS on their prescribed form, the 1099-c will not cause a tax liability.
Should you have further questions or know of anyone that may need help with a short sale, foreclosure or have a financial hardship, keep in mind that our team has specialized training and we are Certified Distressed Property Experts and can offer assistance throughout the entire process. We work directly with all lenders on the homeowners behalf and have tax accountants and an attorney on our team that are familiar with the Mortgage Debt Relief process and the required IRS forms.
Park Avenue Properties is in a unique position to provide superior services to guide you in all your real estate endeavors including Property Management, Commercial and Residential Sales, and Real Estate Investments. We have remained abreast of the changes and stay up to date daily as market conditions dictate.
We appreciate your support and referrals that have allowed us to grow our family business and network of friends.
The Park Avenue Properties Team