WASHINGTON – Jan. 24, 2012 – The nation’s five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices unfairly evicted homeowners, government officials said Monday.
A draft settlement between the banks and U.S. states has been sent to state officials for review. It would be the biggest settlement with a single industry since the 1998 multistate tobacco deal.
Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, even though the banks may have to pay as much as $25 billion in total to settle with the government.
About 750,000 Americans – about half the households who might be eligible for assistance under the deal – would likely receive checks for about $1,800 each.
The agreement also could reshape longstanding mortgage-lending guidelines and make it easier for those at risk of foreclosure to restructure their loans. Roughly 1 million homeowners could see the size of their mortgages reduced.
Five major banks – Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial – and U.S. state attorneys general could adopt the agreement within weeks, according to two officials briefed on the discussions. They spoke on condition of anonymity because they are not authorized to discuss the agreement publicly.
The settlement would only apply to privately held mortgages issued from 2008 to 2011, not those held by government-controlled Fannie Mae or Freddie Mac. They own about half of all U.S. mortgages, roughly about 31 million U.S. home loans.
© Copyright 2012 USA TODAY, a division of Gannett Co. Inc.
Gather with friends and family to enjoy the diverse vibrant sounds of jazz under the stars every 3rd Friday of month at the new Downtown West Palm Beach waterfront concert series. Free and open to the public. Guests are encouraged to bring blankets and chairs. Price: Free Phone: (561) 822-1515 Age Suitability: All Ages Tags: jazz Gather with friends and family to enjoy the diverse vibrant sounds of jazz under the stars every 3rd Friday of month at the new Downtown West Palm Beach waterfront concert series. Free and open to the public. Guests are encouraged to bring blankets and chairs.
When/Where: Friday, Jan 20 8:00p to 10:00p at Waterfront Commons, West Palm Beach, FL
La Cage Aux Folles at Kravis Center for the Performing Arts: Kravis Center - Alexander W. Dreyfoos Jr. Concert Hall, West Palm Beach, FL
When/Where: Tuesday, Feb 14 at 8PM at Kravis Center
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South Florida Fair Celebrates 100 years of Florida Fair Fun! Check the site for more information: http://www.southfloridafair.com/GeneralInfo
When/Where: January 13 - 29, 2012 at the South Florida Fairgrounds
CHICAGO – Jan. 18, 2012 – Don’t blame the real estate appraiser if it turns out that house you’re trying to sell or buy isn’t worth what you thought it was, says the Appraisal Institute.
Real estate agents, homebuilders and others have tried to blame the market’s distressed condition on appraisers, saying that real estate appraisers are at fault for producing opinions of value that don’t match a home’s listing, contract or sales price, according to the Appraisal Institute. And that has delayed a recovery in the housing market.
Appraisal Institute President Sara W. Stephens calls that accusation “nonsense.”
“The fact is that appraisers are undertaking the same thorough research and thoughtful analysis that they always have in order to continue producing reliable, credible opinions of value,” Stephens says. “Don’t shoot the messenger.”
Stephens points out that mortgage appraisals assist lenders in making a lending decision and are not intended to confirm a listing, contract or sales price. There’s no reason to assume the contract price is the “correct” price simply because it’s higher than the appraisal, she says.
Stephens also notes that appraisers’ clients are lenders, not buyers or sellers. Appraisers are independent, third-party experts with no motive to be biased.
“Appraisers don’t set the real estate market; they reflect what’s happening in the market,” Stephens says. “Think of the appraiser as a mirror, reflecting the market. Obviously, the market is depressed – home prices have fallen far below the values of a few years ago. Many homes simply aren’t worth what their owners think they are.
“Qualified, competent appraisers are capable of using their experience and education to determine when – and how – to use distressed sales as comparables,” Stephens says. “These appraisers know what adjustments to make, if any, when using distressed sales as comparables.” In some markets, she says, distressed sales are so prevalent that it would be improper not to use them as comparables.
The Appraisal Institute created a one-page PDF handout to counter the argument that appraisals have impacted the housing market recovery. To read or print a copy, visit the
Appraisal Institute’s website.© 2012 Florida Realtors®
You may owe federal income taxes in 2013 if you have a short sale, foreclosure...
WASHINGTON – Jan. 9, 2012 – You may owe federal income taxes in 2013 if you have a short sale, foreclosure after this year. Now is the time to make the hard decision: Are you going to walk away from your underwater home?
Uncle Sam is still giving homeowners until Dec. 31, 2012, to go through a short sale or foreclosure without tax consequences – as long as the lender officially releases the debt.
But on Jan. 1, 2013, the rules change: The amount a lender forgives, ether in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes.
So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they’re in the 25 percent bracket; $7,500 if in the 15 percent tax section.
Homeowners would be on the hook even if the house sold but the bank had not formally forgiven the loan in a letter: The banks must officially sign off in writing before Dec. 31.
“It’s a huge issue – it will be a shock to many taxpayers after 2012,” said Mark Steber, the Florida-based chief tax officer for Jackson Hewitt Tax Service.
The law first came into affect five years ago as the housing market went bust nationwide.
The Mortgage Debt Relief Act of 2007 “generally allows taxpayers to exclude income from the discharge of debt on their principal residence,” according to the Internal Revenue Service. “Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.”
Up to $2 million of forgiven debt can be forgiven this year, $1 million if married and filing separately, according to the IRS.
Homeowners declaring bankruptcy could escape paying income taxes on any cancellation of debt income if the debt is forgiven in the bankruptcy even if the debtor is solvent, said Nick Jovanovich, a board-certified tax attorney in Fort Lauderdale, Fla.
“Bankruptcy trumps everything,” he said.
Or homeowners might not have to pay income taxes on any cancellation of debt income to the extent that they are insolvent immediately before the cancellation – that is, their debts exceed the value of their assets, Jovanovich added.
Steber and Jovanovich said homeowners should decide now what they are going to do – to give themselves time.
Short sales can take a long time, said Timothy Singer of Coldwell Banker in Fort Lauderdale.
He said he knows of one that had been pending for three years.
But lenders “have been gearing up” and speeding up the process, Singer added.
But even if banks quickly approve a short sale, the would-be buyer may get cold feet and the deal fall through, Singer said.
Then the sellers have to begin again, he said.
Copyright © 2012 the Sun Sentinel (Fort Lauderdale, Fla.), Donna Gehrke-White. Distributed by McClatchy-Tribune News Service.
All my best wishes for an exciting and happy 2012!
Cindy
FIRST! Get everyone out of the house!
Then, grab a fire extinguisher and follow the PASS method:
P - Pull the safety pin.
A - Aim the extinguisher at the base of the flame.
S - Squeeze the handle.
S - Sweep the nozzle from side to side to cover the entire base of the fire.
Friday, Dec 30 6:00p to 9:00p at Northwood Village, West Palm Beach, FL Join us at the FREE Art & Wine Promenade from 6:00 – 9:00pm. Stroll down Northwood Road while enjoying complimentary wine, live entertainment and amazing local artists showcasing their work. Love sweets? Check out Sip N’ Sweets and sample dessert wine and cupcakes from local shop Hello Cupcake. read more
When/Where: Friday, Dec 30 6:00p to 9:00p
Friday, Dec 16 8:00p to 10:00p at Waterfront Commons, West Palm Beach, FL Gather with friends and family to enjoy the diverse vibrant sounds of jazz under the stars every 3rd Friday of month at the new Downtown West Palm Beach waterfront concert series. Free and open to the public. Guests are encouraged to bring blankets and chairs.
When/Where: Friday, Dec 16 8:00p to 10:00p -Waterfront Commons, West Palm Beach, FL
Wednesday Nov. 30, 2011 at 5:00pm WineDown Wednesdays1/2 Price off Bottles of Wine Venue: ROMEO-n-Juliettes Caffe 1544 Cypress Drive Jupiter, FL 33469 (561) 768-3967 =1/2 Price Bottles of Wine
When/Where: ROMEO-n-Juliettes Caffe
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Starz of the Future A Showcase of Aspiring Talent The 2012 South Florida Fair, January 13–29, 2012, will feature an exciting program showcasing aspiring local talent competing for prizes and recognition. ... Venue: South Florida Fairgrounds Expo Center 9067 Southern Blvd. West Palm Beach, FL 33411 (561) 793-0333 Saturday Dec. 3, 2011 at 10:00am
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Friday Dec. 2, 2011 at 4:00pm The Greater Lantana Chamber of Commerce is pleased to announce the 2011 Winterfest Celebration, to be held on December 2nd and 3rd, in partnership with the Palm Beach School for Autism. ... Venue: Lantana Sports Complex 1251 W Lantana Rd Lantana, FL 33462 (561) 540-5737
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Friday Dec. 2, 2011 at 7:00pm The Palm Beaches Marathon course takes advantage of the area’s magnificent, tree-line historic neighborhoods, while incorporating over 65% of scenic waterfront vistas. ... Venue: Flagler Drive - West Palm Beach N Flagler Dr West Palm Beach, FL 33411 (561) 514-3020
When/Where: December 2 @ 7PM
Top 10 Reasons to List Your Property During the Holidays!
1. People who look at property during the holidays are serious buyers and are more ready to make a decision.
2. Serious buyers have fewer houses to choose from during the holidays, so the property has less competition.
3. Houses “show better” when decorated for the holidays with the wonderful lights and festive colors associated with the season.
4. Buyers are more emotional during the holidays and often base their decision on the warmth and good feelings they receive when viewing the home.
5. Buyers have more time to look for a house during the holidays because they have designated time off from work to purchase a home.
6. Many people want to buy before the end of the year for financial and tax reasons.
7. January is traditionally the month for transfers. Transferees can’t wait until the spring to buy. These buyers need a home now and houses must be on the market to capture these buyers.
8. Sellers can restrict showings during personal family events and still take advantage of their homes being spruced up and decorated “show ready” property.
9. Sellers can sell now – but specify a delayed closing or extended occupancy until early next year if it is agreeable within the negotiations of the contract.
10. By selling now sellers have the opportunity to buy during the spring – when more properties are on the market.