Fred Sed's Blog: March 2010

San Clemente Rental Properties

Welcome to the wonderful city of San Clemente! If you are planning on renting a condo or a detached home, you have come to the right place!

We provide FREE services to all potential tenants who would like assistance in searching for a rental property.

If you would like to view the availabe rental properties in San Clemente please CLICK HERE

Please contact our office with any questions at (949) 274-3733

I am behind on my mortgage payments, but not yet in foreclosure. Can I do a short sale?

Yes and this is happening with much greater regularity. Sometimes, these are actually the most attractive short sales for an buyer/investor and a lender because a lender can avoid ALL the costs of foreclosure with a short sale before foreclosure is filed.

In these case, it is more important to have a very good "hardship" story to explain to the lender why you are unable to make the payments.

My house needs a lot of repair; can you still do a short sale?

Yes, though it can make the process more difficult because the price must be substantially lower. The key is to be able to show the bank's appraiser all the work that needs to be done. Let us know if this is the case with your home.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

I have heard that I could still owe taxes after a short sale, is this true?

Yes, this is true but it is not that simple. If this is a concern to you then you need to consult an attorney or CPA, but without trying to get too complicated, we can provide our experience with this problem.

When a lender "writes off" part of a loan, it has to account for where that money went. In the case of a short sale, it is determined that the amount goes to the foreclosed homeowner, since it is their personal debt that is forgiven so that the house can be sold. The bank can account for this in one of 2 ways.

Either the bank keeps the amount of the discount on the books as a bad debt and they can go through the courts to try to collect from you on the bad debt. Or the bank can issue a 1099C form to you for the amount forgiven and that amount can be considered "income" for you.

In our experience, having the bank issue the 1099C is better for the homeowner for a couple of reasons. (Again, please consult a CPA or tax adviser if you have questions) When you receive the 1099C, the control is in your hands as to how to treat the 1099C income on your return. When the bank keeps the debt, the choice is in their hands as to whether they come after you to collect.

Most importantly, even if you receive the 1099C and declare it as income, as you should do, there is a good chance you will owe very little tax if any at all. This is because there is an IRS rule regarding "Insolvency", which essentially says if you are insolvent (more liabilities than assets) at the time of the short sale, then you don't have to count the 1099C as income. There is an IRS form to fill out to show you are insolvent. See www.irs.gov

The bottom line is the typical people who are in a foreclosure or short sale situation have little income or assets, so the 1099C is usually not counted as income, or the tax rate you might pay is very low. Again, ask your tax person or you can call the IRS for free advice.

If you are concerned about owing a debt after the short sale, it is important to remember that if you do not use a short sale to satisfy your lender, then the foreclosure process will continue. If the lender takes back the house and has to sell it for less than you owe, YOU CAN STILL BE HELD LIABLE for the amount they lost. The bank can go after you in court to collect the deficiency. So whether you choose foreclosure or short sale, you still have the potential to owe a liability to the bank. Clearly a short sale is the better way to go considering all things.

So the short answer is that you can owe taxes both after a short sale or after a completed foreclosure; however, if a short sale is done properly, the tax can often be avoided in large part. Again, each situation is unique.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

Is Laguna Beach Your Next Place Of Residence?

If your answer is yes then this is where you want to be and we offer our services for free! Our job is to find qualified tenants to occupy these properties! *

There is no cost to you as the potential tenant/renter, which means our services to you would be free. Our fees are paid for by the owner/landlord of the properties. For additional information, questions, or if you would like to set up a time to preview any property please contact Fred Sed with Fairview Realty at 949-274-3733.



(To reference a property, use the MLS # that is located next to the pictures. It is in bold and it starts with a letter then a series of numbers)

RENTAL PROPERTIES IN LAGUNA BEACH, LAGUNA BEACH LEASES

CONTACT FRED SED 949-274-3733 FOR ADDITIONAL INFORMATION OR TO SCHEDULE A SHOWING!

*Subject to credit check fee of $15.00 per person over 18.

LADERA RANCH REAL ESTATE FOR RENT / LEASE

FRED SED 949-274-3733

There is no cost to you as the potential tenant/renter, which means our services to you would be free. Our fees are paid for by the owner/landlord of the properties. For additional information, questions, or if you would like to set up a time to preview any property please contact Fred Sed with Fairview Realty at 949-274-3733.



(To reference a property, use the MLS # that is located next to the pictures. It is in bold and it starts with a letter then a series of numbers)

LADERA RANCH LEASES, LADERA RANCH HOMES FOR RENT, LADERA RANCH RENTALS

CONTACT FRED SED 949-274-3733 FOR ADDITIONAL INFORMATION OR TO SCHEDULE A SHOWING!

*Subject to credit check fee of $15.00 per person over 18.

Newport Coast Properites for Rent

If you are in the market for some of the most exquisite properties in Orange County then CLICK HERE

If you have any questions please call our office at (949) 274-3733

Single Family Detached Homes for Rent in Orange County

Do you really want to live in your own detached home? If you can't buy then you can rent! You have a

variety of options when it comes to renting your own detached home. It all depends on what city and how

much you would like to spend. If you would like to see your options please CLICK HERE

If you have any questions or would like to apply for a property please call our office at (949) 274-3733

Single Family Detached Homes for Rent in Orange County

Do you really want to live in your own detached home? If you can't buy then you can rent! You have a

variety of options when it comes to renting your own detached home. It all depends on what city and how

much you would like to spend. If you would like to see your options please CLICK HERE

If you have any questions or would like to apply for a property please call our office at (949) 274-3733