Category Archives: Charlotte investment properties

Avoid Foreclosure – AND the Tax Man

stop-foreclosure1Have you ever wondered why some foreclosures sit on the market for what seems like forever and others are foreclosed on right away? The homeowner who has diligently paid their mortgage on time year after year and have built up equity in their home are foreclosed on first! The bank sees the value and plans to make back their money AND get your equity when they auction off your home.

Other homeowners who have little or no equity are allowed to remain in the home without payment sometimes for years!  Banks know they will reduce the incidences of vandalism and have someone who may keep up the home for free if they are allowed to remain.  It also allows the market to appreciate over that time so that a future sale will be more profitable for the bank.

Then, if that’s not enough, the IRS will charge you income tax on the loan amount

tax man in the form of a 1099 Miscellaneous. Your foreclosed loan is taxed as earned income in that single tax year!

Unfortunately sellers lose their home and their equity to banks all the time and then have the double jeopardy of having to pay an additional tax in already distressed situation.

You have options the bank doesn’t want you to know about.  I can help. Call me or go online here and answer a few questions, and I’ll work with you to get what you want for your home and get you moving forward again. I am a REALTOR®, but this is not about listing your home for sale.  I am also an investor and this is about getting you what you want for your house, helping you prevent foreclosure and the taxman. Don’t wait until you’re more than two to three months behind.  Then, it’s much harder to help you get what you want for your house.

cbs isaPlease call me as soon as you know you can’t make your payment.  I’ll ask a few confidential questions by phone to see if my team and I can help, and schedule a visit to see your property.  Call or email me today.  Click this link to see the questions.  My team and I can help you prevent foreclosure, the taxman and get you moving forward.

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Here’s a testimonial from a loyal fan:

‘Chrystal, your experience and professionalism helped me prevail through difficult times in the listing and sale of my long-time family home.

From creating professional marketing materials including onsite brochures, online photo tour, and email blasts, promotion of my listing through TwitterFacebookLinkedIn and YouTube.com, to showing the house 6 of the 24 times it was shown, you were on the job.

After the property was under contract, your previous experience and successful resolution of similar problems discovered during the home inspections helped me work through a difficult transaction that included a breakdown in communications, unexpected property conditions and lender required repairs, and keeping the buyer on track with lending requirements and in love with the house until closing.

I couldn’t have done it without you.  It’s my pleasure to recommend your real estate services to everyone I know.’

Tony Sweatt, Fort Mill, South Carolina

Seller Tip: Don’t Try This at Home

Or What a Seller Did to Infuriate Me and cut off his own nose to spite his face.  My investor buyers, who already had a renter lined up, wanted to see a cute house set atop a hill near their home.  The house was newer, had a 2 car garage, large yard, larger bedrooms and walk-in closet in the master and looked like a great potential investment.  We submitted a complete package, made a cash offer to close in 10 days, and hoped for the best. 

We were overjoyed when the listing agent called with a counter offer that was reasonable and my clients accepted.  Before the paperwork could exchange hands, the listing agent called back to say there were now multiple offers on the table and that my clients should come back with their highest and best, after our verbal offer had been accepted!  Well imagine my surprise when the listing agent argued there was no contract to honor!  She had not gotten the counter offer signed by her seller before presenting it, and in fact, it was true – there was no contract to honor. 

The North Carolina Real Estate Commission states a broker can only give Notice of Acceptance; the broker can’t bind a client to a contract that the client hasn’t signed.  A Broker will create a binding contract by notifying the party making the offer/counter-offer, or that party’s Broker, that the Broker has in their possession the offer signed & accepted by their client as written;  A call to the Legal Department that day revealed that although what the agent did was not illegal, it was, however, unethical.  

Much of real estate is transacted in good faith, and it’s common practice and legally binding to communicate acceptance by phone, email, fax, and mail.  In this case, the agent communicated acceptance of the counter offer without having the seller signed docs in hand.  The greedy seller then violated his word, and lured by the smell of money, accepted another offer described by the listing agent as ‘WAY WAY over the list price’ instead of signing what he’d agreed to.  The agent said the offer was so ridiculous that it probably wouldn’t work out, and that she’d call me if and when it went back on the market.  

My clients and I were angry and frustrated.    They went on the get another great property under contract.

Then, you guessed it.  The email arrived.  The buyers, who had their contract accepted on the basis of a cash purchase, couldn’t get a loan.  Poor buyer.  Poor seller.  My offer had gone in with a proof of funds letter; apparently, theirs did not.

My buyers are very happy with their new purchase, and we close Friday. 

There’s no way they’d have gone back to negotiate with the previous seller after what they’d experienced.  There was just too much risk with all the behind the scenes chain of events that must come together smoothly to close that the seller and listing agent couldn’t be trusted to perform. 

And the seller’s property is still on the market… and that smell of cold hard cash has long wafted away.

For an agent who does things the right way, and protects your best interests from contact to close, contact me by phone or text at 704.562.1030 For a property search to get you on your way to building your investor portfolio, visit TheSafariGroup.com and SEARCH Properties.