By Gigi Santoro
Look, we all know not being able to make the mortgage payments on your home is devastating. Nobody makes the decision to buy something and not be able to pay for it – really, they don’t. This is usually the result of a divorce, job loss, sickness, or something equally catastrophic. We work in the entertainment capitol of the world and with things like “Run-Away-Production” (Don’t get me started … I voted forArnold!) many of us have had to find other careers or work at lower paying jobs within our industry to keep the lights on…. And then, when a short sale is the last option, how do you afford to move your family to another home? It isn’t like you have a big bank account and can just absorb that move or you probably would be making your mortgage payment, right?
We have a solution for you that might make the decision to move a little easier. Now, banks like Chase, Bank of America, and others are willing to offer up to $30,000 (yes, THIRTY THOUSAND DOLLARS) toward relocation costs. What we are doing for our clients is selling their home as a short sale and making every effort to get them some relief toward relocation. We have had some good results — provided our clients help us by getting forms in on time. The banks do have some rules that we must follow.
Another reason we are so focused on helping our friends and neighbors is because The Mortgage Debt Relief Act is set to expire on Dec. 31, 2012. Right now, if you did short sale your primary residence, your bank may send you a 1099 for the difference between what you owed and what your home sold for. In some cases this is hundreds of thousands of dollars of TAXABLE income to you. With the Mortgage Debt Relief Act, your accountant may be able to reduce or completely remove that tax obligation. After Dec. 31, 2012 there is no Mortgage Debt Relief Act. You could be liable for that tax in the event you did a short sale too late.
If you, or someone you know, is struggling to make their mortgage payment or is already behind, call us so we can give them some good, sound advice on what options they have. There is no joy in life when you are financially strapped and afraid to go to the mail box every month. Let’s sit down, have a coffee, and discuss options — we can help! Call us today!
Call Gigi Santoro at (818) 237-5687 or e-mail Gigi@SantoroAndSons.com for a private, caring conversation.