Waltham, MA (PRWEB) December 18, 2012
McGeough Lamacchia Realty, a full service true estate agency serving Massachusetts and New Hampshire, announced these days that they have successfully negotiated just more than $ one hundred million so far in total mortgage debt forgiveness for their brief sale consumers because they began performing quick sales in 2007.

A quick sale is the process of promoting residence for significantly less than the balance remaining on the mortgage. The quick sale division of McGeough Lamacchia along with Dorner Law and Title Solutions operates with banks to get the remaining balance forgiven for their clientele, which is stated in the brief sale approvals. The amount of forgiven debt is the distinction between the quantity a homeowner owes on his or her mortgage and the amount the mortgage firm receives after closing.

For example, a homeowner does a quick sale and sells his or her residence for $ 300,000. If the outstanding balance on the mortgage is $ 400,000, in addition to six months of late payments and late fees, the homeowner may possibly actually owe the bank far more like $ 418,000. With a 6 percent sales commission and around $ five,000 in closing expenses, an further $ 23,000 would come out of the residence sale value, so the bank would get $ 277,000 at closing. The remaining balance the bank would forgive in this example would be the distinction between the total amount owed to them ($ 418,000) and what the bank receives right after closing ($ 277,000) which would be $ 141,000.

McGeough Lamacchia has successfully completed over 1000 quick sales considering that late 2006. On typical, McGeough Lamacchia quick sale clients get $ 107,065 forgiven.
John McGeough and Anthony Lamacchia, co-brokers and owners of McGeough Lamacchia Realty, did their very first brief sale back in late 2006 and then a few more in 2007. When the housing crisis hit in 2008, there was a jump in the quantity of property owners who owed a lot more than what their residences have been worth, so the need to have for home owners to do brief sales enhanced. As McGeough Lamacchia Realty started to do much more quick sales, they perfected the quick sale process and established contacts with banks to get far more approvals. McGeough Lamacchia have performed a number of short sales with every significant bank and servicer there is, including Bank of America, Chase, Citi, Sovereign, Wachovia, Green Tree and many much more.

For homeowners who can no longer afford their houses, there are numerous positive aspects to doing a short sale rather than enabling the house to fall into foreclosure. The homeowner who does a quick sale can repair his or her credit sooner as effectively as obtain a property again sooner than with a foreclosure. A homeowner avoids obtaining evicted from the house, and in several situations a quick sale makes it possible for a homeowner to get relocation help. After foreclosure, banks will frequently pursue the home owners for the remaining debt. For its brief sale clientele McGeough Lamacchia negotiates with banks to get the remaining mortgage debt forgiven, which is another advantage of performing a short sale rather than foreclosure.

In 2012 over 31 % of McGeough Lamacchia short sale clients also received cash incentives to do short sales. All significant servicers are now offering money to homeowners to do a brief sale via the HAFA (House Inexpensive Foreclosure Option) plan rather than enable their properties to go into foreclosure. The HAFA quick sale program beneath HAMP (House Inexpensive Modification Plan) delivers $ 3,000 in relocation assistance. Some key banks such as Bank of America, Chase, and Citi are paying their own incentives on their loans. Last year Chase began offering the largest short sale incentives, which can be as significantly as $ 45,000. Banks supply cash incentives due to the fact with a quick sale banks can stay away from the legal expenses of foreclosure. Quick sale residences are in far better condition than foreclosed houses and banks can sell them for a higher price tag, at least 25 % larger than foreclosed houses.

Obtaining debt forgiven for doing a short sale permits distressed homeowners to commence more than. However, the Mortgage Forgiveness Debt Relief Act, which relieves these home owners from possessing to spend taxes on the quantity of debt that was forgiven, is set to expire December 31, 2012. If the Act is not extended, these home owners who short sell their property will have to pay tax on the quantity forgiven by the lender via the quick sale procedure. Since one of the major rewards of undertaking a short sale is getting the deficiency balance forgiven, McGeough Lamacchia Realty is urging Congress to extend the Mortgage Forgiveness Debt Relief Act as quickly as attainable. The National Association of Realtors