Taxes!

As many of you are aware, April 15th is just around the corner. 6 days! If you closed a short sale in the year 2014 then this may apply to you. (See below for Tax Implications in a Short Sale)

Please note that you may be able to exclude some or all of your cancelled mortgage debt as a result of a short sale if you were insolvent immediately before the cancellation of debt. Please see pages 5 and 6 of the IRS pub 4681 and the IRS insolvency worksheet which will assist you and your tax advisor in determining if you qualify.

Please refer to the attached IRS pub 4681and consult your tax advisor for all tax information affecting debt forgiveness and your short sale.

In addition, borrowers who receive a 1099-C in association with a short sale, foreclosure, or deed-in- lieu should work with their accountant in order to confirm that the 1099-C was actually completed correctly by the borrower’s lender.


Always retain your final HUD-1 (estimated settlement statement) as well as any documentation related to the original amount of the mortgage. If the 1099-C has not been completed correctly, the borrower and a CPA can demonstrate the correct calculations to the IRS.
Check with your tax professional about a possible extension of the Mortgage Forgiveness Debt Relief Act for 2015.

IRSCircular230Disclosure: Any US federal tax advice contained in this communication is not intended or written to be used, and cannot be used for the purposes of avoiding penalties under the Internal Revenue Code, or promoting, marketing, or recommending to another party any transaction or matter addressed herein. This section is not intended to give tax advice. It is advisable to confirm the current tax laws with each case with your tax advisor. 

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Chicago Update!

Although the traffic of downtown Chicago has been an adventure in itself, our Principal Attorney Elizabeth Kayser and one of our File Managers Matt O'Toole have made some great headway in our Chicago expansion plans. 

Our company has done numerous short sales in the State of Illinois throughout the years, but we realize that no two short sales are the same; so to better serve our clients we’ve spent the time to learn the ins and outs of the Illinois short sale. We have built business relationships with those who share the same vision; to ensure the same best practices that have created success for us in our other locations. The ever-changing housing industry has us constantly searching for new improvements that will continue to propel the firm and our team toward our mission: A graceful exit from a difficult situation for a Homeowner. 

Elizabeth and Matt continue business meetings and networking through tomorrow before they will head back to St.Louis to debrief. 

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

FAQ of the Month - March

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

FAQ of the Month - February

Question: Will I have to pay back the rest of the amount owed on my mortgage after a short sale?

         Answer:

As with most legal questions, it depends.

First, it depends on which state the property is located in. There are some states with anti-deficiency statutes that preclude banks pursuing the remaining balance on the loan (the legal term for the remaining balance is “deficiency”). However, anti-deficiency statutes are not common, so this question will often require another level of analysis.

Next, it will depend on the investor of the loan. Loans that are backed by Fannie, Freddie, FHA, and VA will allow for a full waiver of deficiency upon completion of the short sale and full compliance of the terms of the short sale approval. However, there are some narrow exceptions that may require the seller to make a cash contribution at closing to offset a sum of the outstanding balance in order to be granted a full waiver of the rest. These requested cash contributions are the exception to the rule and can even can be countered by the seller in some circumstances.

Finally, if a private investor has backed the loan, the waiver of deficiency will depend on that particular investors policy. Some privately held banks will negotiate the deficiency on a case-by-case basis. Although policies can vary, most of these private banks will primarily focus on the seller’s financial position in determining whether to waive all or part of the deficiency.

 

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Case Studies

Case Studies told by Kayser File Managers are now available on our website. 

HERE

These stories are recaps of some of the most interesting files of 2014! 

Preview one of our stories below:

Short Sale Maze

File Manager: Ryan Hyde

We often come across sellers and agents who have tried to pursue a short sale on their own to no avail. In some cases it has only been a few weeks, but in others, the effort has already been dragged out for months before we are brought into the fold. We can and do get these deals closed, protecting the seller from foreclosure and securing the commission for the agent. However, to dig these “lost” cases out of a hole can take a lot additional effort, expertise, and creativity.

One particular FHA short sale with Bank of America exemplified this challenge.

When the agent and seller got us involved, they had been in the process for 4 months and had already seen offers fall by the wayside while trying to navigate the maze of the short sale process. After 16 variances, the stars aligned and we were able to close the short sale. This protected the borrower from foreclosure and a deficiency judgment; the agent received their commission and the buyer moved into their new home.

This is what our client, the seller, had to say when it was all over:

“You have been truly amazing.  Thank you so much for assisting me in the sale of my home....I know I definitely could NOT have done it without you.  I haven't had the best of luck over the last six months, but you have come through and took such a huge weight off of my chest...allowing me to actually enjoy and celebrate the impending birth of my son.  Thank you...so much, you have no clue what this has done for me.  As you know, I lost my job in August.  I would like to do something to show my appreciation for all of your hard work...it may just be a little delayed, given the crazy set of circumstances I have been dealt.  But if it means anything...it was an extreme pleasure to work with you.  You are prompt, so friendly, and on top of things, and I have a large amount of respect and admiration for you.  For once, my worry was able to take a "back seat", all because I knew you were handling things and taking care of business.  Again, thank you so much for all of your hard work.  You've lightened my load more than you know....”

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Kayser Short Sale Law Center: Recap 2014

2014 brought much change to us here at Kayser. We not only completed over 170 short sales, but we expanded our services into the Chicagoland area, brought on a partner and have relocated our offices to Clayton, where we have joined a venture capital firm that specializes in accelerating and expanding companies that have exciting prospect and growth potential such as ours.

Although we have increased the resources available to us to better serve our clients, we have not changed who we are or what we do. In fact, we are expanding our services by launching a new division doing Loan Modifications sometime this year to further assist homeowners.

The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Welcoming 2015!

Missed our latest Press Release and Newsletter? 

Don't worry, simply click the links below to see what is happening with Kayser and some important news updates in the short sale industry!

Press Release

January 2015 Newsletter

*The choice of a lawyer is an important decision and should not be based solely upon advertisements This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.