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!

In today’s market, many homeowners are finding it difficult to make their mortgage payments on time.  For this reason, our team has compiled a list of frequently asked questions and answers which may be helpful for people who are behind on their mortgages.

I am behind on my mortgage.  What are my options?
Your options will depend upon your financial situation, length of delinquency and age.   For example, if you are struggling to pay your mortgage because of accumulated late fees and penalties or have a high interest rate, one of our loan modification programs may be ideal for you.  Or, if you are over the age of 62, you may qualify for a reverse mortgage.  Depending on your circumstances, other options may include short sales, bankruptcy or loss mitigation.

I know other people who have filed for bankruptcy.  Is that the best option for me?
Again, in order to determine which option will work best for you, we would have to consider your individual circumstances.  It is true that many people choose to file for Chapter 7 or Chapter 13 bankruptcy when they are behind on their mortgage payments.  While there are several bankruptcy benefits, like having your debts discharged or being able to repay your debts over the course of 3 – 5 years, it is important that you speak with one of our mortgage specialists before you commit to filing for consumer bankruptcy.  Simply put, there may be better options for your situation.

I just received a notice of foreclosure.  What should I do?
Immediately after you have received a notice of foreclosure, you need to take quick action.  The best thing you can do is contact American Economic Solutions and speak with one of our mortgage specialists.  We may be able to prevent your foreclosure and will do everything we can to help you remain in possession of your home.   Our team will review your current situation and provide effective solutions that will enable you to stop foreclosure.  Remember, the sooner you get our team involved, the better your outcome will be.

What should I do if I want to modify my home loan but don’t know where to start?
You can start the loan modification process easily by speaking with a specialist from American Economic Solutions (AES).  We are a trusted company that has completed hundreds of loan modifications.  With our help, you will avoid scams, pay zero advance fees and have the comfort of a 100% money back guarantee.  We will work closely with your lender to come up with the best mortgage terms possible.

What if I believe I was a victim of a loan modification scam?
If you have been a victim a loan modification scam, you should report the company you worked with to the Better Business Bureau.  You can also file a complaint with your state’s Attorney General’s Office.

For further assistance, contact our team today!

This article written by Justin McHood, entitled “Loan Modification: What to Expect if You are not Currently Late” addresses questions that the Foreclosure Prevention Consultants at American Economic Solutions encounter every day.

In the section entitled “When Loan Modifications Make More Sense than Refinancing”, McHood discusses the topic of when to refinance versus a loan modification. He makes a great argument for homeowners who owe more than their house is worth. He suggests that it makes more sense to work with the homeowner’s lender to get the home loan modified, which may leave the homeowner in a better financial situation.

Another question our Foreclosure Prevention Consultants are faced with every day is, “If the client is not late on the mortgage can American Economic Solutions help the homeowner?”

McHood addresses this obstacle in the next portion of his article in the section entitled, “Loan Modifications: What To Expect If You Are Not Currently Late.” The best recommendation our Foreclosure Prevention Consultants can give is to let the homeowner know that the loan modification varies from lender to lender. While the loan modification process varies by lender, it also varies by each individual borrower’s situation. This is why at American Economic Solutions, we feel it pays to have an authorized company represent the client. We know how to work with various lenders and maximize homeowner/borrower benefits, not the banks’ benefits.
To read the full article referenced above, please visit the following site:
http://www.zillow.com/blog/mortgage/2009/01/28/loan-modification-what-to-expect-if-you-are-not-currently-late/