Weeks ago, the state of California took a step in the right direction by passing a new measure for homeowners agreeing to short sales.  Under the new measure, homeowners would be granted tax relief if they chose to pursue short sales instead of allowing their properties to be foreclosed.  Throughout the state, thousands of homeowners are contending with foreclosure, making this new piece of legislation a great win.

The new bill, which will be signed by Governor Arnold Schwarzenegger, will “waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale,” reports the Los Angeles Times.  The Los Angeles Times says that the bill is expected to impact approximately 34,000 taxpayers in California.  Additionally, the new measure will allow $60 million in tax credits for companies in the green-energy industry.

While the Franchise Tax Board claims that new short sale tax break would generate $34 million less in revenue for the state of California, it is an important incentive that will greatly help homeowners who have been struggling with foreclosure and sky rocketing mortgages

According to state Senator Ron Calderon, “The mortgage-debt tax relief provision in this bill will provide financial shelter for tens of thousands of Californians who have lost their hopes and dreams in the housing market crash, and it’s about time we gave these folks a helping hand.”

At American Economic Solutions, we are absolutely thrilled about the passage of this new bill which will help those who homeowners who have been dealing with financial hardships for some time now.  With the economic times being so challenging, it is important that the government looks out for taxpayers who are losing their homes due to staggering unemployment rates and the greedy practices of mortgage lenders.  We hope that this tax incentive helps the many homeowners that need assistance so they can repair what damage has been done.

If want to learn more about this tax break, our short sale specialists are always more than willing to lend our insight.  Simply give us a call at 1-888-500-2632!

Read full story from the L.A. Times here: http://articles.latimes.com/2010/apr/09/local/la-me-tax-break9-2010apr09

No one expects to face foreclosure.  The truth is most homeowners in the United States only have to deal with foreclosure after losing their jobs, going through a divorce, suffering from an incapacitating illness or other such life events.  Unexpected events happen to everyone, even responsible homeowners.  However, once people fall behind on their mortgage payments, they will have to deal with the reality of losing their homes if they do not act quickly.

When homeowners receive notices of foreclosure from their banks or lenders after defaulting on their mortgages, they will have two main options:  allow the foreclosure to happen or pursue a short sale.  Before homeowners decide which option is most appropriate for their situation, they need to know the difference between short sales and foreclosure.

What is foreclosure?
Foreclosure occurs when a bank or mortgage lender decides to regain possession of a property after a homeowner has defaulted on his or her mortgage.  Once lenders move forward with foreclosure, homeowners must vacate their properties and surrender their homes.  The damage does not stop there as foreclosures will appear on homeowners’ credit reports and will lower their credit scores.

What is a short sale?
A short sale occurs when both homeowners and lenders agree to sell homes for less than what is owed on the homes.  The lenders accept the loss because it helps them avoid costs associated with foreclosure and homeowners avoid incurring damage to their credit reports.

Which is better?
At American Economic Solutions, we firmly believe that of all the options available, foreclosure is the worst for several reasons:

• You lose your home.
• Your lender may choose to file a judgment against you to collect your past obligations as well as costs related to the foreclosure.
• You will incur significant damage to your credit report for years to come.

With the cons far outweighing the pros, we advise you to steer free and clear of foreclosure and pursue short sales instead.  While you may think that short sales are extremely complicated, time consuming and strenuous, the truth is that when you work with our specialists, the process is very smooth and expedient.  Our short sale specialists will handle all of the applications, paperwork and work with your lender and make sure that things move along quickly.

Contact American Economic Solutions today to learn more about our effective short sale services!

In today’s unpredictable economy, many people are finding it difficult to keep up with their monthly mortgage payments.  Whether you are a homeowner that recently lost your job or experienced a drastic change in income, chances are, you are finding it hard to pay your mortgage every month.

Unfortunately, whenever you fall behind on your mortgage, lenders and financial institutions will quickly move forward with foreclosure.  Once this happens, you will have to decide if you will fight for your home, lose your home to foreclosure or consider an alternative, such as short sale.

Today, many homeowners are choosing short sales because they do not want to deal with the consequences related to foreclosure, like incurring damage to their credit reports.  Instead, they agree to sell their homes for less than what is owed to their lenders, with their lenders permission.

Believe it or not, short sales are not as complicated as many would have you believe, especially when you enlist help from the short sale specialists at American Economic Solutions.  At American Economic Solutions, our experienced specialists have handled numerous short sales throughout the country and are ready to help homeowners prevent foreclosure now.  We work close with homeowners during the three most crucial short sale phases:  pre-qualification, marketing and closing.

Pre-Qualification:  during this phase of the short sale process, our specialists will speak with your mortgage lenders for you to explain your financial situation and hardships.  We will help you complete applications and send in appropriate paperwork, such as hardship letters and tax returns, to make sure you get approved.

Marketing:  after you have been pre-qualified for short sale, we will help you market your home to attract attention from potential buyers.  You will have the chance to work with licensed real estate agents who will generate the interest of qualified buyers.

Closing: when you reach the final phase of the short sale process, our specialists will help you prepare a purchase contract and buyer pre-approval letter.  We will also work alongside you to make sure that your short sale is completed and expedite the process by communicating regularly with your lender.

With our short sale specialists on your side, you absolutely can avoid damaging your credit report, prevent foreclosure and start regaining financial control!

Anytime homeowners are thinking about modifying the terms of their home loans, it is important that they work with a credible loan modification company for numerous reasons:

Experience. Most people do not possess the experience it takes to successfully complete the loan modification process.  In fact, the majority of people who choose do-it-yourself loan modifications never complete the process.  However, when homeowners work with experienced loan modification companies, such as American Economic Solutions, they are able to successfully modify their home loans and obtain favorable terms from their lenders.

Knowledge. The majority of homeowners do not the same level of knowledge as loan modification companies do.  Additionally, most homeowners are not aware of all the federal loan modification programs that exist or even how to apply for these programs, which is why working with a company that specializes in home loan modification is crucial.

Relationships. Homeowners usually do not have established relationships with their mortgage lenders, which can make it difficult to enter into negotiations or get the best rates on their home loans.  At American Economic Solutions, we have worked tirelessly to build relationships with large lenders, like Bank of America and ING, and our relationships always benefit our clients.

Time. Anytime homeowners choose to pursue mortgage modifications on their own, they not also waste a great deal of money, but also a lot of time.  However, when homeowners work with American Economic Solutions, they are often amazed at how quickly we are able to modify their loans and they avoid wasting precious time.

Rates. The primary reason homeowners seek loan modification is to lower their monthly payments and to reduce interest rates.  Yet, the vast majority of homeowners do know have the experience, skills or abilities to get the best terms possible and this is why working with a loan modification company is so important.  At American Economic Solutions, we have helped innumerable homeowners get the lowest rates on their home loans, reducing their monthly mortgage payments and helping them save a ton of money.

Need assistance with loan modification?  Contact our knowledgeable specialists now!