First “Flipping,” Now “Flopping”

Back during the boom, people “flipped” houses by buying low and selling high. During the bust, that same premise is being used to “flop” houses through the use of short sales. What the article failed to address was the impact of a short sale on the original homeowner.

Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?

All this talk about mortgage principal reduction and mortgage modification in the general press is incomplete and often confusing. People searching for answers can even find that information on government websites is too general for their specific needs. Take, for example, debt forgiveness income. This IRS page on The Mortgage Forgiveness Debt Relief Act and [...]

Debunking Strategic Default Myths

Myth: strategic default is limited higher-income debtors. In our experience, clients across the income spectrum have considered and engaged in strategic default. Myth: strategic default is limited to investment properties. In our experience, clients have strategically defaulted on primary residences as well as investment/rental properties and commercial properties. Myth: lenders are eager to avoid foreclosure [...]

Cash for Keys, Neither Simple nor Straightforward

As my partner, Rick Mitchell, outlined in “Cash for Keys?” walking away from a mortgage obligation is neither simple nor straightforward. As with short sales, 90%+ of our clients have other debts in addition to the mortgage debt that’s addressed in a deed in lieu/cash for keys offer and those debts remain after a deed [...]

Cash for Keys?

The copywriter who thought up “Cash for Keys” did a good job. Unfortunately, the process isn’t as simple as the catchy title implies. You don’t simply hand the keys over to the mortgage company, take your $1000 to put down on an apartment and walk away. Unless you file for bankruptcy protection, any time you [...]

NC Foreclosures

The highest rates of foreclosure in North Carolina are in the urban (Wake, Guilford, Mecklenburg) and surrounding counties (Union County in particular), and in the mountains (Caldwell County, etc.), where investment property was marketed like this…

Primer for Distressed Homeowners: Part 3 of 3

In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales. In the second post, we answered questions on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset. This post addresses questions [...]

Primer for Distressed Homeowners: Part 2 of 3

In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales. In this article we cover questions and answers on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset. Q: Can I [...]

Primer for Distressed Homeowners: Part 1 of 3

With the jobless recovery hitting the Charlotte region particularly hard, we’re getting a steady stream of calls asking for help preventing home foreclosures, forced sales and sheriff’s sales, and facilitating short sales.

Foreclosures and Short Sales: What to do?

Our clients tend to feel guilty about defaulting on their mortgages, or the prospect of imminent default. They feel bad for the consequences to the bank, and feel embarrassed about the prospect of a foreclosure. Short sales are one
alternative, fraught with traps for the unwary; income taxes arising from debt forgiveness, difficulties in getting junior lienholders to agree to a short sale, inability to convey good title at closing if all lienholders are not covered by the short sale, etc.