Real Estate in Lake, Cook, Dupage & Mchenry County
In today's market, more so than ever before selecting the correct professional real estate consultant is a crucial step in the buying and selling process. Whether you're planning on buying, selling or you simply have a question; feel free to call Rob Morrison.
Buyers- The time is now to invest! The cost of housing is more affordable and the interest rates are extremely low. Motivated sellers surround the market place creating opportunities for buyers to purchase at a premium price. Individuals and families are downsizing, up scaling or simply relocating invoking a level of motivation that only a buyer who takes action will capitalize on. Short sales and foreclosures if bought correctly can also be advantageous to a buyer.
Sellers- Take a punch, give a punch! It's not as violent as it sounds... as a seller you may find yourself marketing and selling your home for less than desired (Taking the punch) but you have now switched seats. You’re no longer a seller, you’re a buyer. A buyer with a lot of driving power to purchase a new home for an exceptional price. (Giving a punch) Just remember to always pack a harder punch than the one you received and unforeseen equity will be your end result.
Short Sale- Is a homeowner who needs to sell but owes more on their home then it's currently worth. Short sales have become a good option for homeowners who simply do not have the financial means to support their home for much longer. This process is best started sooner than later. Discussing the possibility of a short sale with a real estate professional, attorney and CPA is always recommended for this option due to terms that are not as clear cut as they appear.
For example: Banks have a tenancy to file judgments on homeowners for deficiencies. The judgment for the difference can remain attached to a homeowner for over 2 years and jeopardize their credit. A good agent will attempt to negotiate a deal excluding a judgment but the homeowner will more than likely be obligated to complete a 1099 form. The form will then show the deficiency owed as income for the homeowner. The IRS in turn can tax you on that income. If a homeowner is in a 28% income tax bracket and the deficiency is $45,000 then the homeowner is responsible for an additional $12,600 on their taxes. This is where a creative CPA comes in hand. Also a homeowner may qualify for an exclusion from the 1099 if they have lived in the property between 2-5 years or they complete a 982 form proving they are completely insolvent.
Do you need to know more about short sales or what documents to collect and submit to the bank? Contact Rob Morrison today!
Foreclosure-Generally a bank will send a (NOD) notification of default to the title company and homeowner after 3-6 missed payments. After the Nod is received by the title company the home will usually go to auction 3-9 months following. The bank much like a short sale may also send you a 1099 to pay taxes on your deficiency. Even property tax will be due from the homeowner unless negotiated with the bank.
Need to learn more about foreclosures contact Rob Morrison today.
