Short Sale vs. Loan Modification…
Here is a quick check-list of some things to consider when deciding whether to loan modify or short sale your home
Consider a Short sale if:
Unemployed or significant reduction in income
No longer want the home
Loans greatly exceed value of the home (most home owners owe 50% more than the
current value of their home)
Have failed at loan modification
Consider a Loan Modification if:
Employed
No major change in income
Want to keep the home
Only need the loan s interest rate or term altered (i.e. do not need principal reduction banks are not generally doing principal reductions)
General Benefits of a Short Sale vs Foreclosure...
The benefits of doing a short sale are both immediate and long term:
Short term Benefits:
Less damage to credit (which may impact a variety of things such as the ability to secure a rental home, retain credit cards at lower rates; obtain financing for cars).
Lower tax liability (if any) due to typically higher payout to lender
Clearing employment background checks
Retention of employment
Stigma of foreclosure is avoided
Predictable move (rather than unpredictable eviction)
Possible relocation incentives (some lenders, some programs)
Long term Benefits:
Quicker recovery of credit
Ability to apply for a mortgage in 2 years vs. 7 years for a foreclosure.
While many traumatized home owners find it hard to imagine owning a home again, the truth is most will. The more quickly a home owner can recover and re-enter the housing market, the higher the likelihood of obtaining a home at today s lowered values. 
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Tax Considerations >Tax Deductions
Here is a question which is often asked about real estate sales: which home loan fees are deductible for income tax purposes? It is good to know the answer to this question before you sign on the dotted line. It may influence which loan you will choose. Loan fees for certain services are not itemized on your fee statement, but are grouped together into a single category.
The most obvious deductible fee is the loan fee paid to acquire a mortgage for a principal residence. The IRS recently ruled that the buyer could deduct the fee in the first year, even if the seller paid it! Other deductions include pro-rated property taxes and mortgage interest. On these items, the buyer may only deduct their share.
Most of the other closing costs are not deductible, but you may add them to your home's adjusted cost basis when calculating appreciation. Among these costs are appraisal, attorney, and inspection fees, as well as title, recording and notary fees. Fire insurance fees are neither deductible nor do they figure into the cost basis. If you are not sure which fees are deductible, consult a professional tax advisor.
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| Q |
Where is the world's oldest hotel?
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| A |
The Hotel Ryokan in the village of Awazu, Japan dates back to AD 717, when an inn was built near a hot spring reported to have miraculous healing properties. |
 See More Real Estate Trivia > |
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