The Schieffer Group's Real Estate Blog

Open House 34970 Calle Campo Temecula sunday 12-4 & Monday 11-3 One of a kind New Custom Wine Country Estate Home! Come check it out!

2012-11-10T13:19:00.001-08:00

http://www.postlets.com/repb/8446424

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The Schieffer Real Estate Group
Murrieta, Temecula and Menifee REALTORS
Allison James Estates & Homes
951-310-7653
Visit The Schieffer Group's Website
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Murrieta, CA Real Estate, Condos, Homes for Sale
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2012-04-12T09:57:00.003-07:00

Short Sale before Foreclosures-

Americans Brace For Next Wave Of Foreclosures

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(Reuters) - Half a decade into the deepest U.S. housing crisis since the 1930s, many Americans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.

But a painful part two of the slump looks set to unfold: Many more U.S. homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.

...

RealtyTrac CEO Brandon Moore said the "numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed."

One big difference to the early years of the housing crisis, which was dominated by Americans saddled with the most toxic subprime products -- with high interest rates where banks asked for no money down or no proof of income -- is that today it's mostly Americans with ordinary mortgages whose ability to meet payment have been hit by the hard economic times.

"The subprime stuff is long gone," said Michael Redman, founder of 4closurefraud.org. "Now the folks being affected are hardworking, everyday Americans struggling because of the economy."

...

Burns and Fell are the new face of the U.S. housing crisis: Middle class, suburban or rural with a conventional 30-year fixed mortgage at a reasonable interest rate, but unemployed or underemployed. Although the national unemployment rate has fallen to 8.3 percent from its peak of 10 percent in October 2009, nearly 13 million Americans remain jobless, meaning many are struggling to keep up with their mortgage payments.

Real estate company Zillow Inc says more than one in four American homeowners were "under water" or owed more than their homes were worth in the fourth quarter of 2011. The crisis has wiped out some $7 trillion in U.S. household wealth.

"We're seeing more people coming through who have good loans with reasonable interest rates," said Ed Jacob, executive director of non-profit lender Neighborhood Housing Services of Chicago Inc, which provides foreclosure counseling. "But in many households only one person works now instead of two, or they had their hours cut."

"The answer to the housing crisis now is job creation."

If you need help with your situation call us for a free consultation.

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The Schieffer Real Estate Group

Michelle and Mike Schieffer
Murrieta, Temecula and Menifee REALTORS
Keller Williams Realty
(888) 316-1496
Visit The Schieffer Group's Website
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Murrieta, CA Real Estate, Condos, Homes for Sale
Temecula, CA Real Estate, Condos, Homes for Sale
Menifee, CA Real Estate, Condos, Homes for Sale
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Foreclosure and Shortsale for Rich Also

2012-02-24T14:53:00.003-08:00

NEW YORK (CNNMoney) By Jessica Dickler-- Five years after the housing bubble burst, America's wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country -- and many of them are doing so voluntarily.

Over 36,000 homes valued at $1 million or more were foreclosed on -- or at least served with a notice of default -- in 2011, according to data compiled by RealtyTrac, which tracks foreclosures. While that's less than 2% of all foreclosures nationwide, it represents a much bigger share of foreclosure activity than in previous years.

Foreclosure Fiasco

Why the mortgage settlement is a fair deal

Million-dollar foreclosures rise as rich walk away

The other foreclosure settlement: Millions of homeowners eligible

Foreclosures climbed in January

What the foreclosure settlement means for you

"These properties are accounting for a bigger piece of the foreclosure pie," said Daren Blomquist, vice president of RealtyTrac.

Out of all foreclosure activity, the share of foreclosures on properties valued at $1 million or more has risen by 115% since 2007 while the share of multi-million dollar foreclosures -- or homes valued at more than $2 million -- jumped by 273%. Meanwhile, the share of foreclosures on mid-range properties valued between $500,000 and $1 million fell by 21%.

Until recently, many homeowners at the high end of the housing market were able to postpone the foreclosure process, Blomquist explained. With other assets and alternatives, "they had more financial means to hold out against default."

In addition, lenders are typically more amenable to working with homeowners that have other resources, said Ron Shuffield, president of Esslinger-Wooten-Maxwell, a real-estate firm in Miami where homes priced over $1 million represented 9% of all foreclosures last year.

See inside 8 multi-million dollar foreclosures

But with a recovery in the housing market still years away, foreclosure has turned out to be a worthwhile option after all. Saddled with bloated mortgages after a long run up in property values, many high-end homeowners have chosen to pursue a "strategic default." Even though they can afford the monthly mortgage payments, they still decide to walk away from their home because they owe more on the property than it is worth.

"In the lower-priced houses you'll see more people defaulting because they can't afford the payments and it's a choice between feeding their family and paying the mortgage on a home that's under water," said Stuart Vener, a national real estate and mortgage expert with the Florida-based Wilshire Holding Group.

"In million-dollar homes, you're looking at people who can afford it, but they have to make a business decision: Does it make sense to make payments on a mortgage when the home is worth less than they owe?" he said. In many cases, it often makes more financial sense to walk away.

At least they can take their time packing up all of their belongings. On average, it takes about 348 days for a foreclosure to be completed, Blomquist said. "They may get almost a year of free housing out of the deal."

But don't expect a few depressed mansions to bring down the neighborhood. A single foreclosure in an otherwise wealthy area is unlikely to impact surrounding values, Blomquist said.

"You're not going to see the weeds growing," Vener added. But there will be an opportunity for buyers to snatch up these impressive houses at bargain basement prices, he said, which could provide a much-needed boost to sales overall. "In a good way, this is going to drive turnover," he said.

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The Schieffer Real Estate Group
Murrieta, Temecula and Menifee REALTORS
Keller Williams Realty
(888) 316-1496
Visit The Schieffer Group's Website
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Murrieta, CA Real Estate, Condos, Homes for Sale
Temecula, CA Real Estate, Condos, Homes for Sale
Menifee, CA Real Estate, Condos, Homes for Sale
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Tax Forgiveness Law Ends December 2012

2012-02-21T12:29:00.002-08:00

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation is scheduled to end December 31, 2012. If you are not making the payments on your mortgage you need to call us ASAP to help you qualify for this program before it ends.

We are Certified short sale specialist serving primarily Riverside County.(Temecula, Murrieta, Menifee, Canyon Lake, etc.)

The Mortgage 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, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not 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 thriftily taxpayer’s financial condition.

What is the Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does exclusion of income mean?

Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?

No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing

separately.

Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?

Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.

How long is this special relief in effect?

It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.

Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?

The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in Publication 4681.

If the forgiven debt is excluded from income, do I have to report it on my tax return?

Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

Source: IRS

Home Affordable Foreclosure Alternatives (HAFA) set to end on December 31 2012.

2012-02-21T06:59:00.000-08:00

The Home Affordable Foreclosure Alternatives (HAFA) program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure.The HAFA program started on April 5, 2010 and will end on December 31 2012.

The goal of this program is to help you sell your home in a short sale and settle your mortgage debt if you owe more on your mortgage than your house is worth and are unable to qualify for a home loan assistance program.

This federal government program streamlines the short sale approval process and offers financial assistance to help you with relocation.

Eligibility

You may be eligible for the Home Affordable Foreclosure Alternatives program if:

the property is your current principal residence, OR the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time.

the amount you owe on your first mortgage for your property is equal to or less than:

$729,750 for 1 unit

$934,200 for 2 units

$1,129,250 for 3 units

$1,403,400 for 4 units

you owe more on your home than it’s worth

your current mortgage was taken out on or before January 1, 2009

you are experiencing a hardship (such as a job loss, divorce or medical emergency) and are unable to afford your current home loan

While a short sale will still have a negative effect on your credit, it generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter. As a result, your credit may improve faster. If a short sale is completed on your property, we will report that your loan was "paid in full for less than the full balance."

You should contact a tax professional to gain an understanding of any tax implications.

If you are behind on payments and need someone to help you understand the different options that are availalbe to you give us a call.

The only thing it will cost you is a little time to call or email!

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2012-02-20T16:35:00.000-08:00

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San Francisco's Foreclosure Audit Turns Up Irregularities, Illegal Activity

2012-02-19T19:56:00.000-08:00

An audit San Francisco foreclosures conducted by county officials revealed documentation errors were evident in nearly all of the cases examined.

Auditors reviewed 382 case files that resulted in a foreclosure sale between January 2009 and October 2011. They identified one or more irregularities in 99 percent of the loans and one or more clear violations of state law in 84 percent.

San Francisco’s Office of the Assessor‐Recorder says by releasing the results of the audit, it hopes to open a dialogue on the importance of ensuring compliance with state laws so that corrective action can be taken.

Source: DSNews, Article By: Carrie Bay

2011-11-13T20:13:00.001-08:00

It is going to be a good week at the Schieffer Real Estate Group serving our clients! http://ow.ly/i/lecx http://ow.ly/7sije

Zillow listings

2011-11-11T19:20:00.001-08:00

For Sale: 5BR/3+1BA Single Family House in Canyon Lake, CA, $499,900

2011-11-11T15:26:00.000-08:00

For Sale: 5BR/3+1BA Single Family House in Canyon Lake, CA, $499,900

Open house Saturday 11/12/11 from 11 am to 4 pm.

Come by!

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The Schieffer Real Estate Group

Michelle Schieffer
Murrieta, Temecula and Menifee REALTORS
Keller Williams Realty
(888) 316-1496
Visit The Schieffer Group's Website
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Murrieta, CA Real Estate, Condos, Homes for Sale
Temecula, CA Real Estate, Condos, Homes for Sale
Menifee, CA Real Estate, Condos, Homes for Sale
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Welcome to The Schieffer Group's New Blog!

2011-06-30T16:07:00.000-07:00

WATCH THIS SPACE!!! We will be updating this blog with information on new homes, market conditions and local community events in the communities of Murrieta, Menifee, Temecula, Canyon Lake, Wildomar, Winchester, Perris, Fallbrook and Lake Elsinore, California. Please sign up to get our Blog updates sent to you by email.
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The Schieffer Real Estate Group
Murrieta, Temecula and Menifee REALTORS
Keller Williams Realty
(888) 316-1496
Visit The Schieffer Group's Website
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Murrieta, CA Real Estate, Condos, Homes for Sale
Temecula, CA Real Estate, Condos, Homes for Sale
Menifee, CA Real Estate, Condos, Homes for Sale
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