FREE EDUCATIONAL WORKSHOP ON Saturday, May 14

UNDERWATER? THINKING OF SHORT SELLING YOUR HOME?
We are a few days away from this highly informative real estate workshop that The Dulcie Crawford Group is hosting, together with two of Nevada's foremost attorneys in short sale representation and asset protection and trust law.

Among the topics to be covered are:

• Loan Modification — Solution or Myth? 
• Successful Strategies to Negotiate with the Bank on Your Mortgage
• How to Walk Away from Debt But Still Protect Your Assets
• Short Sale Strategies that Lead to a Deficiency Release
• 2011 Changes to the Government Aid Programs like HAMP and HAFA
• Do you need legal representation?
• Asset Trust Protection—why you need to have one to protect your family

Mark your calendars:

Saturday, May 14, 10:30 AM to 12:30 PM
Realty One Group Seminar Room
9089 S. Pecos Rd Suite 3400, Henderson, NV

Please share this event with your family and friends who you think might benefit from the wealth of information that will be presented FREE OF CHARGE during the seminar.

To register, simply visit http://dulciecrawford.myubertor.com/ShortSaleSeminar.ubr

We hope to see you at the event!

Read This If You Need More Time to Pay Your Taxes

We are reprinting this tax tip from the Internal Revenue Service’s website (http://www.irs.gov/). If you have questions related to your (tax) filing scenario, please contact a qualified tax professional. If you need a referral to one, please contact us at 702-588-6842 or 702-285-1990, or email dulciecraword@gmail.com.

IRS Tax Tip 2011-64, March 31, 2011

Taxpayers who owe taxes may be relieved to know that there are some options for those who owe and can’t afford to pay the full amount right away.

Here are the top 10 things the IRS wants you to know if you need more time to pay your taxes.

Taxpayers who are unable to pay all taxes due are encouraged to pay as much as possible. By paying as much as possible now, the amount of interest and penalties owed will be less.

1. Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an installment agreement, temporary delay or an Offer in Compromise.  
2. If you cannot pay the full amount, taxpayers should immediately call the number or write to the address on the bill they receive.  
3. You may want to consider financing the full payment of your tax liability through a loan. The interest rate and fees charged by a bank or credit card company are usually lower than interest and penalties imposed by the Internal Revenue Code. 
4. If you cannot pay in full immediately, you may qualify for a short amount of additional time, up to 120 days, to pay in full. No fee is charged for this type of payment arrangement and this option may minimize the amount of penalties and interest you incur.  
5. You may also want to consider an installment agreement. This arrangement allows you to make monthly payments after a one-time fee of $105 is paid. If you choose to pay through a Direct Debit from your bank account, the fee is reduced to $52. Lower-income taxpayers may qualify for a reduced fee of $43. 
6. To apply for an installment agreement you can use the Online Payment Agreement application available on the IRS website; file a Form 9465, Installment Agreement Request; or call the IRS at the telephone number shown on your bill.  
7. In some cases, a taxpayer may qualify for an offer in compromise, an agreement between the taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.  
8. Even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lien to secure the government’s interest until you make the final payment.  
9. It is important to respond to an IRS notice. If you do not pay your tax liability in full or make an alternative payment arrangement, the IRS is entitled to take collection action.

More information on the collection process is available at http://www.irs.gov.

Links:

• Payment Options - Ways To Make a Payment
• Other Ways to Resolve Tax Debt That Could Save You Money
• Online Payment Agreement Application
• Form 9465, Installment Agreement Request
• Publication 966, The Secure Way to Pay Your Federal Taxes
• Publication 594, The IRS Collection Process

House Panel Votes to End Two Foreclosure-Prevention Programs

Last week, the House Financial Services Committee approved two bills that would terminate two foreclosure-prevention programs. The panel passed by a 32-23 vote legislation (H.R. 839, “HAMP Termination Act”) that would end the Home Affordable Modification Program that offers incentives for lenders to modify troubled borrowers’ mortgage loans, in the wake of serious concerns about the program’s effectiveness and cost. H.R. 839 would amend the Emergency Economic Stabilization Act of 2008 to terminate the authority of the Secretary of the Treasury to provide new assistance under the Home Affordable Modification Program, while preserving assistance to homeowners who were already extended an offer to participate in the Program, either on a trial or permanent basis.

HAMP has suffered from myriad problems since its launch in February 2009, including low enrollment and high rates of re-default on modified mortgages. House Rep. Patrick McHenry (R-NC), who introduced the bill, has called the program an “epic failure”. The ranks of supporters of the bill are thinning, even among Democrats, a group of whom recently sent a letter to Vice-President Biden urging immediate action to help struggling homeowners, and calling efforts to date “inadequate” and a “critical problem”. Growing dissatisfaction with HAMP on both sides of the aisles suggest that the bill could possibly garner passage even in the Senate, where Democrats maintain a slim majority. The White House has threatened a veto of all bills that terminate emergency loan and mortgage modification measures.

The committee also approved by a 31-24 vote a bill (H.R. 861) that would terminate the Neighborhood Stabilization Program that provides money for state and local governments to help clean up blighted properties and redevelop them. The NSP has received $6 billion to enable state and local governments to purchase and either rehabilitate or destroy distressed properties in their jurisdictions. Local governments in areas hard-hit by foreclosures claim that the program helps them to cope effectively with the fallout from the housing downturn, which has left thousands of homes empty and prone to vandalism, squatters and blight. Critics of the NSP have claimed that the program fails to address the needs of troubled homeowners, and incentivizes banks and property owners to “dump” distressed properties onto taxpayers.

In related news, on March 10th, the House also voted on legislation H.R. 830, the Federal Housing Assistance (FHA) Program Termination Act that would end the FHA Refinance Program that enables underwater borrowers to refinance into less-costly Federal Housing Administration-insured mortgages. It is scheduled to go to the Senate soon; however, the Obama administration is opposed to the passage of the bill and according to the White House’s official website, “If the President is presented with H.R. 830, his senior advisors would recommend that he veto the bill.” You can read the statement here: http://www.whitehouse.gov/sites/default/files/omb/legislative/sap/112/saphr830h_20110308.pdf

The House also passed bill H.R. 836, the Emergency Mortgage Relief Program Termination Act. This program was created to help homeowners who have lost jobs to continue making mortgage payments. The bill now goes on to be voted on in the Senate. Keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill. You can read the full text of the bill here: http://www.gpo.gov/fdsys/pkg/BILLS-112hr836eh/pdf/BILLS-112hr836eh.pdf

All these legislation will greatly impact the housing recovery initiatives that we as Realtors support. To find out how these changes will affect you either as a seller or buyer, contact us today at 702-285-1990.

New Home Affordable Foreclosure Alternatives (HAFA) Changes for 2011

As a follow-up to the previous blog’s topic on the updated guidelines for the Home Affordable Foreclosure Alternatives (HAFA) program issued by the Treasury Department recently, below is a more comprehensive discussion of what these new guidelines are and how it may affect thousands of homeowners across the country. This is particularly helpful to those who are “underwater” and can give the necessary clarity as to what steps one can do if they owe more than what their properties are worth and have lost a job or is experiencing financial difficulty.

Here are important excerpts from the supplemental directive and the reason for its issuance:

In December 2010, Treasury issued version 3.0 of the Making Home Affordable Program Handbook for Servicers of Non-GSE Mortgages (Handbook), a consolidated resource for guidance related to the MHA Program for mortgage loans that are not owned or guaranteed by Fannie Mae and Freddie Mac (Non-GSE Mortgages).

This Supplemental Directive provides policy enhancements to HAFA and amends and supersedes the notated portions of the Handbook. This Supplemental Directive is effective February 1, 2011; however, servicers may begin to implement the changes outlined in this Supplemental Directive immediately. By February 1, 2011, servicers must make appropriate updates, consistent with investor guidelines, describing the basis on which the servicer will offer HAFA to borrowers (HAFA Policy) and ensure that all potentially eligible borrowers are evaluated and treated consistently.

Servicers that have executed a servicer participation agreement and related documents (SPA) must follow the guidance set forth in this Supplemental Directive. This guidance does not apply to first lien mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency, such as the Federal Housing Administration, Veterans Administration or the Department of Agriculture’s Rural Housing Service.

Here are the highlights of the supplemental directive that would be of benefit to homeowners:

Monthly Gross Income: HAFA no longer requires servicers to determine if the borrowers monthly payment is higher than a 31 percent debt-to-income ratio. Servicers must continue to verify the borrower’s hardship by obtaining a signed Hardship Affidavit or Request for Modification and Affidavit (RMA). Notwithstanding the foregoing, each servicer may include a requirement in its HAFA Policy that borrowers provide updated financial information to evaluate the borrower.

Vacant Property: To be considered for HAFA, the property currently must be or recently must have been the borrower’s principal residence. A property that has been vacant or rented to a non-borrower for not more than 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative RASS) or DIL agreement (DIL Agreement) is eligible for HAFA, so long as the borrower provides documentation that the property was such borrower’s principal residence prior to relocation and such borrower has not purchased a one- to four-unit property during the 12-month period prior to the date of the SSA, Alternative RASS or DIL Agreement. The borrower’s reason for relocation does not need to be connected to re-employment or transfer of employment. Also, there is no longer a minimum distance requirement. Servicers are not required to verify the number of miles the borrower moved from the property.

Release of Subordinate Liens: HAFA no longer requires second-lien holders to agree to accept 6 percent of the unpaid principal balance owed them, up to $6,000. Servicers now decide who gets paid how much, with a cap still at $6000.

Timing for Issuance of Short Sale Agreement: HAFA now requires borrowers seeking a short sale get an answer/agreement within 30 days. If an unsolicited borrower requests consideration under HAFA, the servicer must evaluate the borrower’s eligibility and, if eligible, complete and send the borrower an SSA no later than 30 calendar days from the date of the borrower’s request.

Timing for Response to Alternative Request for Approval of Short Sale: No later than 30 calendar days from the date of receipt from the borrower of an executed sales contract, Alternative RASS, and a signed Hardship Affidavit or RMA, the servicer must communicate approval or disapproval of the sale or provide a counter offer on the Alternative RASS.

Real Estate Brokerage Commissions: The real estate commission that may be paid shall be the amount indicated in the listing agreement between the borrower and the listing broker, provided that such commission shall not exceed six percent of the contract sales price. When the servicer has retained a contractor to assist the listing broker with the transaction, the servicer must include a statement in the SSA that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

With respect to Alternative RASS transactions, when the servicer has retained a contractor to assist the listing broker with completion of the transaction, the servicer must include a statement in the Alternative RASS form that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

Alternative Deed-in-Lieu Programs: DIL Agreements between servicers and borrowers that provide an option for the borrower to continue to occupy the property on a rental basis (deed-for-lease) or provide an opportunity for the borrower to repurchase the property at some future time are also eligible for financial incentives under HAFA, so long as all other program requirements are met. At the discretion of the servicer in accordance with investor guidelines, the borrower relocation incentive may be paid either upon the successful closing of the DIL or at a future time when the borrower vacates or repurchases the property. Servicers offering programs of this type must include program descriptions and conditions in their HAFA Policy.

Conditional DIL agreements that allow a borrower to reinstate the original loan following some period of rental occupancy are not eligible for HAFA incentives unless and until the DIL is final and the borrower no longer has the option of reinstating or modifying the original first mortgage lien.

Borrower Notices: When a borrower who was not previously evaluated for HAMP requests a short sale or DIL, and the servicer determines that the borrower meets the HAMP eligibility requirements and will be solicited for HAFA, the servicer must notify the borrower verbally or in writing of the availability of HAMP and allow the borrower 14 calendar days from the date of the notification to contact the servicer by verbal or written communication and request consideration for HAMP. This Supplemental Directive clarifies that this notification may be given simultaneously with the servicer’s consideration of the borrower for HAFA.

Retroactivity: Servicers are not required to implement the terms of this Supplemental Directive as to any loan that has been reported via the HAMP Reporting Tool or for any loan as to which a borrower has been determined to be ineligible for HAFA. Notwithstanding the foregoing, servicers may re-evaluate borrowers previously determined to be ineligible for HAFA using the guidance in this Supplemental Directive. Each servicer’s HAFA Policy must contain a written policy that describes the basis on which the servicer will re-evaluate such borrowers under HAFA.

You can read the full text of the HAFA Supplemental Directive here:
https://www.hmpadmin.com/portal/programs/docs/hafa/sd1018.pdf

If you have any questions or need clarification on eligibility and program rules, we would be happy to sit down with you for a no-obligation consultation. Please contact us at 702.285.1990, 702.588.6842 or dulciecrawford@gmail.com.

WINTER PREP TO KEEP COSTS DOWN

As the temperatures continue to dip, we want to share these tips to ensure that your home is prepared for the cold days ahead. The article below is courtesy of RIS Media, one of the leading information sources for real estate.


Fall is the perfect time for homeowners to ensure their house is prepared for winter weather. A home should be winterized so it will be able to sustain damage severe weather may bring. Additionally, if a house is winterized and damages do occur, the homeowners insurance policy will cover the house against the weather damage.  HomeownersInsurance.net offers advice so people can prepare for winter weather and help avoid potential costly issues.

Homeowners must first inspect their house thoroughly so that possible issues can be avoided. The most important interior areas are the furnace and fireplace. HVAC professionals can inspect the furnace and clean out the ducts. Furnace filters should be replaced on a monthly basis to keep ducts clean. Any flammable materials around the furnace should be removed.

If there is a hot-water radiator, the valves need to be opened slightly to bleed. When water is seen, they can be closed. If propane is used in the home, the tank will need to be filled. These should all be inspected to be sure they are working properly.

If there is a fireplace in the house, the screen or cap on the top of the chimney should be secure to keep out any birds, squirrels or rodents. The chimney should be cleaned by a professional occasionally because buildup of soot can cause fires. The damper should open and close properly and the mortar between the bricks should not be cracked. Any cracks should be fixed so heat does not seep into areas it should not be, creating a fire hazard.

The next step in preparing for winter for safety and insurance purposes is to examine the exterior. Damage may not be evident immediately during winter months, and may only be noticed with the first spring rain. The doors and windows should be checked for cracks, and then fixed. If the homeowner has a basement, shields can be placed over the window wells for protection from snow melt. Any worn shingles or roof tiles should be replaced so melted snow does not seep into weak areas. Gutters and downspouts should also be unclogged and leaf guards should be installed. Debris should then be cleared from the foundation to look for further cracks to repair.

OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARD

Below is a recent press release from The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury on the latest Housing Scorecard under the Obama administration. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market.

We like to share this piece of good news because as an active Realtor, I continue to be hopeful that the housing market improves. I have served many clients through high and low times and certainly, this challenging environment is something we haven’t seen before, but I believe is nothing insurmountable.

You can view previous housing scorecards here: http://portal.hud.gov/portal/page/portal/HUD/initiatives/Housing%20Scorecard

Here is the complete report for October:

“Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place – such as additional assistance on refinancing and helping unemployed homeowners stay in their homes – and ensuring that help is available to homeowners as soon as possible.”

“HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis," said acting Assistant Secretary for Financial Stability Tim Massad. "Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.”

The October Housing Scorecard features key data on the health of the housing market including:

• Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April of 2009, record low interest rates have helped more than 7.1 million homeowners to refinance, resulting in more stable home prices and $12.7 billion in total borrower savings.
• As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter.
• More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010 —nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million).
• At nine months, almost 90 percent of homeowners remain in their permanent HAMP modification, with 11 percent defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16 percent of permanent modifications are 60+ days delinquent.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration's unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP.

NAR MEETS WITH BIG BANKS TO DISCUSS FORECLOSURES PROBLEMS

With all the recent issues surfacing related to foreclosures, it is good to note that the National Association of Realtors (NAR) is taking a highly proactive stance to address the current market struggle with housing and mortgage. Recently, the NAR Leadership Team has held several meetings during the past two months with the heads of major national banks, i.e. Bank of America Home Loans, Wells Fargo Home Mortgage, Chase Home Mortgage, and CitiMortgage, to discuss problems with short sales and the availability of credit to potential buyers. NAR’s position has always been that “we want to help homeowners avoid foreclosure, whenever possible.”

These meetings give NAR an opportunity to discuss with the four largest lenders the problems Realtors face every day when working to get deals to the closing table. All the banks acknowledge the difficulties that realtors, lenders and homeowners are facing and have given their commitment to work with all concerned.

We are including below the key agreement points provided by NAR, as a result of this meeting. As an active member of the NAR, my group supports the initiatives and will closely monitor the progress that will enable us to provide you with the best service.


SUMMARY OF BANK MEETINGS

In each meeting, lenders and REALTORS® have agreed to work in the following areas:

Transparency
REALTORS® need to understand each lender’s policies for underwriting loans, valuing property, selecting brokers for REO listings, and deciding whether to approve a short sale.

Service
Having a single point of contact is extremely important to improve service to the borrower, short seller, and the real estate agent. NAR is urging all lenders to adopt this approach.

Balance
FHA and the government sponsored enterprises (GSEs: Fannie Mae and Freddie Mac) have become over-focused on safety at the expense of their mission. NAR urges lenders to advocate a return to a reasonable center, now that credit policies have over-corrected.

Speed
When a borrower applies for a loan and receives a conditional approval, the conditions are often impossible to meet. It would be better to decline the loan and allow all parties to move on. Short sale approvals often take months. HAFA and other short sales programs should be implemented quickly.

Accuracy
Lenders are aware that problems related to the application of new appraisal guidelines have skewed some appraisals. NAR continues to raise these issues with the lenders, regulators, FHA, and the GSEs and seek solutions.

Performance/Compensation
Real estate professionals work extremely hard and for many months on a successful short sale. NAR urges lenders to make commissions policies more transparent and to agree not to reduce commissions at or shortly before closing. At the same time, NAR acknowledges that lenders waste time processing short sales that are not real offers, and we urge our members not to participate in this practice.

Lenders also are monitoring performance of REO listing brokers and will take steps to resolve problems.