Mortgage Debt Relief Act Expires

December 31, 2012

The Mortgage Debt Relief Act of 2007 currently relieves borrowers of their cancelled or forgiven debt due to mortgage restructuring, short sale or foreclosure from reporting the relief as income on their taxes.

After this year, anyone who has debt forgiven or cancelled in connection with mortgage restructuring, short sale or foreclosure will be required to report that debt as income for tax purposes. Lenders will continue to issue Form 1099-C to any borrower who has more than $600 in debt from a primary residence forgiven or cancelled. Currently, debt that is forgiven must be reported on Form 982 and attached with their tax returns.

The amount of debt is not considered income at the time of borrowing because of the obligation to repay. If the debt is forgiven or cancelled, the amount received as loan proceeds then becomes reportable as income because the obligation to repay no longer exists.

Will this act be extended?  The Obama Administration is proposing an extension until January 1, 2015, and both parties in Congress seem to agree that extension is a good idea.

Call me today to learn more about
when buyers can purchase again
after a short sale, foreclosure or bankruptcy.

You can learn more about the Mortgage Debt Relief Act here:
IRS: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
IRS: Ten Facts for Mortgage Debt Forgiveness
Will the Mortgage Forgiveness Debt Relief Act Be Extended?

PRM Has the Solution!

Conventional guidelines often restrict financing on rural properties that don’t fit inside the “box”. At Pacific Residential Mortgage, we have solutions! Our exclusive Country Home Mortgage is perfect for hobby farms and rural properties with acreage that don’t conform to conventional financing.

Financing possibilities available for properties with:
-Crops (Orchards, Grapes/Vineyards, Flowers, Hay, etc.)
-Timber Deferral, Nursery Stock or Christmas Tree Farms
-Animals (from pets to livestock)

Call me today to learn more about our Country Home Mortgage.

Share the benefits of Country Home Mortgage with your clients.

Features of a Reverse Mortgage include:
-No credit score requirements
-No income requirements
-No mortgage payments
-Money received is tax free

A Reverse Mortgage is the financing option your senior clients need to gain more purchasing power.

Call me today to see how you can close more deals every year with Pacific Residential Mortgage as your Reverse Mortgage.

Share the benefits of a Reverse Mortgage with your clients.

Are required repairs putting a damper on your closings? Our investors allow up to $5,000 to be held by escrow to complete minor repairs after closing on a case-by-case basis. Sellers avoid the hassle of contingent repairs, buyers can choose the house they really want, and we work together to get them to the closing table.

Escrow Holdbacks are available:
-When repairs cannot be completed prior to closing due to weather conditions
-If the property is HUD or bank owned
-When repairs can be completed within 14 days of closing

A home needing a little TLC is an opportunity for a great SALE!

Each client, loan program and property is unique. Please contact me to determine the best financing option for your client. Other products are available for more substantial repair requirements.

Legend Homes has chosen Denise Prothe, Sr. Mortgage Banker MLO – 136917, as the preferred lender for their new subdivision at Tryon Highlands. Denise brings 15 years of lending experience to the project and was chosen as a Five Star Loan Originator in 2010 & 2011 by Portland Monthly Magazine.

Pacific Residential Mortgage (PRM) offers several financing options for the project including conventional and jumbo financing and an exclusive $500 closing cost credit for all buyers who chose to use PRM for their financing needs.

The Aventine, located at 1201 SW Ophelia St, Portland, OR 97219 will be available to view by Realtors during the NW Natural Broker’s Open on April 24 from 11 am – 5 pm. The home will be open for all visitors during the Ultimate Open House April 28-29, May 5-6 from 11 am – 5 pm, sponsored by the Home Builders Association.

For more information about…

Tryon Highlands: http://legendhomes.com/find-your-home/tryon-highlands/

Denise Prothe: http://www.pacresmortgage.com/team/denise-hedlind-prothe/?branch

Financing Options & Closing Costs: http://www.pacresmortgage.com/documents/tryonhighlandspreferredlender.pdf

Inspection contingencies are written in an earnest money agreement to protect a buyer’s best interest when purchasing a property. Inspections call for repairs to be completed before an appraisal takes place. In some cases, an inspection is not requested by the buyer, but an investor will make the inspection a condition of the loan.

So when is a full home inspection required by an investor?

-When it is requested on an earnest money agreement by the buyer.
-If the appraiser requires one (generally due to deferred maintenance or visible defects).
-If the property has been flipped in the last 12 months. 

Prior to writing an offer or taking a listing, if you are concerned that an inspection may or may not be required, give us a call!

At the height of the housing boom, banks never had the audacity to ask borrowers with perfect credit for their tax returns. Today, as they did for decades prior to the bubble, lenders ask for at least 2 year’s tax returns with all supporting schedules & documentation. All lenders prior to funding cross-check tax returns directly with the IRS utilizing Form 4506-T, verifying provided returns match what was filed.

When it comes to tax returns, Mortgage Bankers at PRM will ask borrowers upfront to provide complete income documentation including:
-Current Pay Stubs, W-2s, 1099, K-1’s
-Personal Tax Returns, Corporate Tax Returns (if applicable)
-Current Balance Sheet or Profit & Loss Statement  

During this tax season, allow ample time for loan processing. Lenders will require 2011 tax returns, or proof of extension, as of April 16, and an influx in filings can cause Form 4506-T to take longer to verify.

Need a referral for a CPA or Tax Consultant? Contact me!

Want a full auto detail?
Email pam.graham@pacresmortgage.com for your chance to win a complete auto detail from Pacific Residential Mortgage. Winner will be chosen April 11, 2012.
Please include your company name, contact phone number and preferred PRM Mortgage Banker with your entry.

Is your car clean, tank full and phone charged with my number on speed dial? Are you dressed for success, attitude adjusted, with a PRM pre-approval in hand?

Beyond a solid pre-approval that you can take to the bank, I can also help with:

PRM Fliers, OSI & Postcards

-Open House & Broker Open Sponsorships
-Flyers & Cost Sheets
-Marketing Support 
-Continuing Education

Give yourself a competitive edge & set yourself apart from the rest by partnering with me.

Let’s lock arms and move some inventory! 

Are you running low on my business cards? Let me know, and I’d be happy to send you more.

Need a full auto detail? Enter to win!
Email pam.graham@pacresmortgage.com for your chance to win a complete auto detail from Pacific Residential Mortgage. Winner will be chosen April 4, 2012.

You and your clients can expect:
-Genuine Hospitality
-Top Shelf industry knowledge
-Made-to-Order Accurate & timely pre-approvals
-Local processing, underwriting and funding
-Closings in 30 days or less, so refreshing!

With Pacific Residential Mortgage, you don’t need a reservation to experience 5 Star service. Your mortgage banker is ready.

Share our full product menu with your clients.