http://thinkglink.com ThinkGlink - Helping you make smarter decisions with your money. en-us **Consequences of Foreclosure Include Not Being Able To Buy Your Own Home** If you have lost a home to foreclosure, you will find your credit ruined and unable to get a home lender to lend you money on a new home for several years. If you find yourself buying a home with friends or relatives, they won't be able to put you on the title to the home if they obtain financing. And if you use any of your own money to buy the home, you'll be in a position of not being on the title to the home and at the mercy of your friends and relatives. Make sure you document what you do, what is expected out of the arrangement and be truthful with the new lender on who is owning the home and why. http://thinkglink.com/article/2010/03/19/consequences-of-foreclosure-include-not-being-able-to-buy-your-own-home **Paying Income Taxes In Two States** You might think that paying income taxes wasn't hard enough. Try paying income taxes in two states and try to figure out what state should get paid what and what state should credit you for any payments made to another state. If you use a tax professional, that person can help you out with state income tax returns in multiple states. If you are doing it yourself, you might benefit from income tax software that can work the payments to the different states and the credit that any state gives you for those other tax payments to the other state. You can use TurboTax, H&R Block among other tax preparations software that's available at most office supply stores, bookstores, and other retailers. http://thinkglink.com/article/2010/03/19/paying-income-taxes-in-two-states **Is Defaulting On Your Mortgage - A Strategic Default - Right For You** The new term in real estate is strategic default. A strategic default is when you decide to default on your mortgage rather than continue making payments. There are many reasons for a strategic default but some of them are the inability to pay, loss of a job, health issues, decline of income or that the home value has declined and the value of the mortgage loan far exceeds the value of the home. For some people defaulting on a contract is a moral question. While for other people, defaulting on a mortgage is solely a business decision that has nothing to do with moral issues. http://thinkglink.com/article/2010/03/19/is-defaulting-on-your-mortgage-a-strategic-default-right-for-you **Quit Claim Deed vs. Living Trust** When deciding how to pass on property to loved ones, there are many choices. You can transfer property now using a quit claim deed. You can transfer property later using a will. Or, you can place your property in a living trust now and set forth your wishes for the disposition of your property in the trust. The living trust can then dispose of your assets upon your death avoiding probate court requirements and you can control the property you own while you are living. http://thinkglink.com/article/2010/03/19/quit-claim-deed-vs-living-trust **Keeping Inheritance Separate** If you have received a sizable inheritance, you may want to protect that money from possible claims from your current spouse or future spouse. To keep your inheritance separate, you'll need to make sure that those funds are always kept in their own account, never commingled and you never use marital funds in any way with the inherited money. You should probably talk to an estate planner to help you out and make sure your inheritance is safe. http://thinkglink.com/article/2010/03/19/keeping-inheritance-separate **How Much House Can I Afford** While we all have seen shows on dream homes, we may not be able to afford those homes and may not want to actually live in those dream homes. You need to know how much you can afford when buying a house. When you know the amount, you still need to feel comfortable spending that amount on a monthly basis. A big mistake home buyers make is thinking they can afford a home and then realizing that they are spending too much of their money trying to keep their home. It's a common home buying mistake to buy more than you can comfortably afford. Make sure you are comfortable with your monthly home budget. http://thinkglink.com/article/2010/03/19/how-much-house-can-i-afford **Only Refinancing Can Help Avoid Issues With A Mortgage After A Divorce** You may think that your divorce is final when you finally obtain a divorce decree. But you should know that some things may still left open: children may still be a source of issues after a divorce. But if you have not finalized all financial matters, you may still have troubles later on. If you owned a home and you signed the note and mortgage on that home, your only safe way to get yourself out of any problems that may arise from the home and the mortgage loan is to have the home refinanced with a new loan. Your name should not be on that loan and your name should come off the title to the home. When taking your name off the title to the home, you can use a quit claim deed or other deed generally used in your area. http://thinkglink.com/article/2010/03/19/only-refinancing-can-help-avoid-issues-with-a-mortgage-after-a-divorce **Consider A Short Sale In Real Estate When Things Go Bad** When your options are limited, a short sale may be the best way to get out from under the debt burden of your home or investment real estate property. You can try to lease your property. But if you can't lease it and make it work out, and you can't sell it for enough money to pay off the debt on the property, you should talk to your lender about a short sale. But if you go down the short sale route on the sale of a home or investment property, try to get the lender to waive any right to go after you for a deficiency judgment. http://thinkglink.com/article/2010/03/18/consider-a-short-sale-in-real-estate-when-things-go-bad **Short Sale In Real Estate Can Lead To A Mess** Although the federal government will soon begin paying homeowners to complete a short sale, short sale payments are already available to first and second lenders. The problem for most homeowners today is that even if they want to sell their home in a short sale, and even if they've listed the home as a short sale in the local multiple listing service, there aren't enough short sale buyers. Will a short sale or a foreclosure happen faster? See our related short sale articles for more information. http://thinkglink.com/article/2010/03/16/short-sale-in-real-estate-can-lead-to-a-mess **Is This The Right Time To Refinance Into An Adjustable Rate Mortgage (ARM)?** For some homeowners, an adjustable rate mortgage (ARM) may be perfect for them. If they plan on living in the home up to seven years, an ARM loan may be all they need. For other home owners, the security and stability of a fixed rate thirty year mortgage may be the right thing. If you are considering refinancing, you have options available to you. If you plan on living in your current home a short period of time, you may find that it is the right time to take advantage of the low rates offered by an ARM. But for others that own homes, they may opt for the stability and security of a fixed rate mortgage (FRM). The decision on how much risk you want to take now if you refinance is yours. But in some cases, you can save quite a bit of money by going with an ARM over a FRM. http://thinkglink.com/article/2010/03/15/is-this-the-right-time-to-refinance-into-an-adjustable-rate-mortgage **Current Estate Tax Laws Causes Problems For Some Homeowners** In years past, if you inherited property, you could inherit property and immediately sell it and you would incur no tax liability. In addition, if the person you inherited property from had an estate that was less than several million dollars, the estate would also have no taxes to pay. But in 2010, if you die, your estate will pay no estate taxes at all; no matter how large the estate is. But if you inherit the property, you now have to pay tax if you sell the property on the basis of what the difference between what the property cost the owner (plus some expenses) and what you sold the property for (plus expenses). We expect the estate tax laws to change, but for now we are left with the current rules that affect many homeowners that have property that has appreciated significantly. http://thinkglink.com/article/2010/03/15/current-estate-tax-laws-causes-problems-for-some-homeowners **Home Buyer Checklist For 2010** Ilyce has compiled a checklist to be used by home buyers, and in particular, first time home buyers when looking for a new home. While her best selling book ***100 Questions Every First Time Home Buyer Should Ask*** outlines many of the items in this checklist. It's good to have a handy list when shopping for a home. You can buy Ilyce's book at most bookstores and at most online bookstores including BarnesAndNoble.com, Borders.com and Amazon.com. http://thinkglink.com/article/2010/03/15/home-buyer-checklist-for-2010 **$8000 First Time Home Buyer Tax Credit Has Restrictions** Time is running out for the $8000 first time home buyer tax credit and also for the $6500 repeat home buyer tax credit. If you can sign a contract by April 30, 2010 and close on the home by June 30, 2010, you should make it under the wire. But you have to qualify for the tax credit. The home buyer tax credit has time restrictions, income restrictions and other rules that disqualify many from getting the credit. http://thinkglink.com/article/2010/03/15/8000-first-time-home-buyer-tax-credit-has--restrictions **Condo Association Problems Come With Declining Real Estate Market** The decline in the Real Estate Market has created problems for condo associations and homeowner's associations alike. As more home buyers have lost their homes to their lenders, condominium and homeowner's associations have lost a source of their revenue. As the revenue has dried up, condo associations need to make due with less money. Until the real estate market stabilizes, employment begins to come back, and lenders stop foreclosing on homes, more and more condo and homeowner's associations will have problems meeting their obligations. http://thinkglink.com/article/2010/03/15/condo-and-homeowner-association-problems-come-with-declining-real-estate-market Ilyce Glink Show Notes - March 7, 2010: Tax Questions And Answers. Today on the show, Enrolled Agents (and members of the Georgia Association of Enrolled Agents) Bill Nemeth, Merry Brodie, and Chet Burgess, joined us to answer your tax questions. Don't forget to sign up for our March 27, 2010 event, How To Invest Your Money in 2010. The Georgia Association of Enrolled Agents, all of whom are licensed to represent taxpayers before the IRS, will be on hand to answer your tax questions and address the tax consequences of investing. Use Discount Code: plum to get 40 percent off the ticket price to our How To Invest Your Money in 2010 event. http://thinkglink.com/blog/2010/03/14/ilyce-glink-show-notes-march-7-2010-tax-questions-and-answers