Thursday, October 25, 2012

Certain Tax Exemptions Ending

There is another financial threat approaching mortgage borrowers. Currently, any mortgage debt forgiven by a lender in a short sale, loan modification or foreclosure is exempt from federal tax. However, beginning January 1st, that exemption will expire.
After the expiration date, borrowers will have to include mortgage relief as income rather than a write-off, which means that a borrower would have to pay taxes on a $100,000 principal reduction or even on a $20,000 write-off after a short sale. There is a strong possibility of an extension of the tax exemption; however there is no guarantee of it based on current negotiations.
Some short-sale lawyers are doing all that they can to make sure their clients do not get stuck with a huge tax bill. The Debt Relief Act exemption can only be applied to canceled mortgage debt that is used to buy, build, or improve a primary resident, but not a second home with the maximum being $2 million.
It seems that borrowers in New York and New Jersey would be hit hardest if the tax exemption is not extended, because both states have a considerably large backlog of foreclosures. New York has a time line of 1072 days, which is three times the national average of 382 days.
While this exemption is reaching its expiration date, borrowers should not rush into the short sale process. Instead they should look at whether a short sale would be the best choice in their situation and consider all other their options. 

Thursday, October 18, 2012

The Pines at Lake Forest New Construction by Toll Brothers

Toll Brothers offers new construction spec home available for December occupancy at the Pines of Lake Forest. For immediate consideration, contact Karolynn Schofield734-649-6411

With housing inventory so tight in the Ann Arbor real estate market, this spec home might be just right for someone looking to get into a new home by the Holidays.  This Columbia II model, located at 2421 Woodview Pittsfield, MI, is offered at $651,995 and features 3,600 square feet of living space.

Price:  $651,995
Move In:  11/2012
Bedrooms:  4
2nd Floor Master Bedroom
Baths:  3
Half Baths:  1
Square Feet:  3665
Garages:  3
MLS Number:  3205883
Lot Number:  54

Toll Brothers has 19  new construction home sites available in the Pines of Lake Forest.  Located South of Ellsworth Road, on the east side of Maple Road, The Pines offers excellent proximity to downtown Ann Arbor, the University of Michigan and U of M Medical Campus and offers Ann Arbor schools. Homes in this sub are expected to sell from the high 500's to the mid 700's.

BetterBuildings for Michigan

BetterBuildings for Michigan has announced a new program that will help the local community take control of their energy bills.

This program includes two steps. First, residents will be matched with a Certified Building Analyst who will perform a comprehensive energy assessment of their home. A report will be generated to show residents where they are using energy and where they could save money with a few improvements.

Second BetterBuildings for Michigan offers many rebates and financing to get any home improvement job completed. Along with that, there are several bonuses to choose from, such as: double your utility’s energy rebates, $1200.00 Energy Savings Bonus, same as sash financing, and low-rate long term financing.

Additional opportunities include a referral program, and lawn signs. There is an enrollment fee of $100.00, DTE/MichCon gas customers can get a $50.00 instant rebate for a limited time. For residents interested in signing up, visit


Monday, October 8, 2012

Home for Sale 5294 Village Rd Saline

Travis Pointe Golf Community Home for Sale
5294 Village Rd Saline MI - View the Virtual Tour 
Handsome Brickfront Executive Home featuring 4 Bedrooms, 3 Baths, Open Floorplan with gleaming Hardwood Floors, Cathedral Ceilings, Two Fireplaces, Formal Living/Dining, Maple/Granite/Stainless Kitchen with
adjacent Breakfast Room & Spacious Family Room with Stone Fireplace. 
Master Suite features a Picture Window with Wooded Views, Sitting Area, Dual Walk-in Closets.  Master Bath has dual sinks, Large Jetted Garden Tub, separate water closet and separate shower.  2nd Bedroom is a handsome space with Built-in Hardwood Shelving spanning an entire wall and dual closets.  3rd Bedroom has a ceiling fan, and the 4th Bedroom has a picture window and large closets. 
2nd Floor Bonus Room with Skylights & Vaulted Ceilings. Finished Daylight Lower Level. 1 Acre landscaped yard has 2 Decks, Brick Paver Patio with Gazebo bordered by a Pond with waterfall & fountain.  Saline Schools.
Travis Pointe Country Club memberships available--enjoy casual and fine dining, events, championship golf, fitness center, indoor and outdoor swimming pools and tennis courts, and more.
 Close to Downtown Saline, Farmer's Market, Festivals.  Just minutes to Ann Arbor.  Convenient to I-94 for commuting and travel.  Call Andy at 734-604-8242.

 Call Andy Piper 734-604-8242 for a private showing appointment.

Thursday, October 4, 2012

Investment Property Financing

This is the perfect time to invest in residential real estate, whether you are using a self-directed IRA, LLC, S Corp, or putting investment property in your name. 

Mortgaging investment property maximizes your buying power saving cash for additional investments, but there are some things you should consider before applying for financing on income producing property.
When you apply for a residential Mortgage, most lenders limit the total number of mortgaged properties that you can have in your name to four, including your primary residence.  This makes building a meaningful portfolio a challenge. 

Properties owned and mortgaged in your own name will always count against your total mortgages allowed.
If you have a self-directed IRA, and invest in real estate, mortgaged properties are likely to count against your total allowable mortgaged properties limit, because title is normally held in the name of the IRA in trust for you. 

Properties owned and mortgaged by an LLC, even though financed with commercial loans, would also be included in your four mortgaged property limit.  

There are a couple of ways to structure your finances to maximize mortgage-ability for future purchases! 
If you are married, you can purchase and finance income property individually enabling each spouse to have four mortgaged properties, doubling borrowing power.

You can form an S Corp to purchase and mortgage properties and avoid having any of it’s holdings count as mortgaged properties. 

There are many wonderful opportunities available for real estate investors.  If you have been dreaming about investing in real estate, this is the best time in history to jump in!
For more information, please contact:

Mary Adams
Ann Arbor, MI 48104
Cell: 231.437.0301
eFax 734.585.3531