When considering a short sale, sellers and agents naturally expect the negotiations to occur between the seller and the mortgage lender(s). Unfortunately, distressed homeowners may encounter other lurking lienholders, such as the Internal Revenue Service (IRS).

IRS holds statutory lien rights which may be exercised in the event an individual or business fails to meet their tax obligations. The existence of such a lien can potentially defeat or delay an attempted short sale and cost all parties involved time and frustration. However, this issue may be resolved if addressed early in the process of the negotiations.

Quite a bit of confusion begins to stir around this time of year. Many taxpayers contact us requesting a “second extension” as the deadline approaches because they might not yet be ready to file the return. This stems from the old extension procedures IRS had, when a "second extension" of time to file could be requested using Form 2688. Under the old extension procedures, you would request an automatic 4-month extension followed by a 2-month second extension. Since the inception of the Form 4868 and 7004, the extension now grants you an extra six months to file your taxes, but there is no second extension.

For Individuals and Partnerships with a fiscal year-end of December 31, the deadline to file a tax return was April 15 (extended to April 17 this year because of Emancipation Day). For many of people, the required documentation may not have been finalized or available to prepare the return, so an extension of time to file may have been requested. The IRS will allow an automatic 6 month extension to file the return if a Form 4868 for Individuals or Form 7004 for Partnerships is filed by the original tax deadline. An extension does not extend the amount of time to pay the tax due on the return. It is an extension of time to file, not an extension of time to pay. Any taxes due are still due on the initial deadline or additional penalties and interest will be assessed from the original filing deadline.

Many people become paralyzed with fear when they owe money to such an onerous creditor as the Internal Revenue Service. They cringe at the sight of that dreaded piece of mail – a notice from the IRS. The most important thing is to respond promptly. Ignoring the problem will only make it worse.

An IRS notice includes the amount of tax owed, plus any penalties and interest added from the date the tax was due. If you are unable to pay your balance in full, and fail to respond, the IRS will begin collection actions against you. This may include offsetting any refund to which you may be entitled, filing a notice of federal tax lien against your property, or serving a notice of levy of assets such as wages, bank accounts, Social Security benefits and retirement income. To prevent these drastic actions, you must communicate with the IRS promptly.

Florida’s Uniform Electronic Transactions Act has made it possible to create a real estate contract by way of electronic communication. A valid offer, acceptance and consideration must be present, however, to create such contract.

Agents should be mindful of what they are stating in their email communications when negotiating a real estate transaction. Florida’s statute of frauds requires contracts transferring interests in real property be in writing and signed by the party to be charged. Although one might automatically assume the words “signature” or “signed” contemplate an ink signature, adoption of the Uniform Electronic Transaction Act (UETA) by Florida, has broadened the scope of such terms to include markings, symbols, or even sounds which are intended to serve as a party’s signature to an agreement.

Buyers seeking to purchase property at foreclosure sale face the potential threat of title issues, as title to real property which has made its way through the foreclosure process may be invalid, clouded or subject to certain liens.

Certain errors or omissions in the foreclosure action may render a foreclosure judgment void and result in title of the foreclosure property reverting back to the former homeowner. Some of the most prevalent errors affecting foreclosure properties include insufficient notice, incorrect legal descriptions in the mortgage and/or foreclosure documents, and competing claims on the part of lenders as to ownership of the mortgage debt.

Quite a bit of confusion begins to stir around this time of year. Many taxpayers contact us requesting a “second extension” as the deadline approaches because they might not yet be ready to file their tax return. This stems from old extension procedures IRS had, where a "second extension" of time to file could be requested using Form 2688. Under the old extension procedures, you would request an automatic 4-month extension followed by a 2-month second extension. Since the inception of the Form 7004, the extension now grants you an extra six months to file your taxes, but there is no second extension.

In June 2012, the Internal Revenue Service (IRS) announced new interim application requirements (“New Requirements”) for individuals requesting Individual Taxpayer Identification Number (ITINs). ITINs are issued to foreign individuals who are not eligible to obtain a social security numbers. The New Requirements will remain in effect through the end of the year and, according to IRS, “are designed to strengthen and protect the integrity of the ITIN process while minimizing the impact on taxpayers.”

Prior to implementing the New Requirements, an ITIN application (Form W-7) simply required a notarized copy of an applicant’s passport to confirm his or her identity. The New Requirements now require ITIN applicants to supply original documentation, such as passports, birth certificates, or certified copies of such originals from the issuing agency. For example, if an applicant was issued their passport in their home country (i.e. Canada, United Kingdom, Czech Republic, etc.) to properly submit an ITIN application, such applicant would be required to either surrender their original passport to the IRS or obtain written certification of a copy of the passport from the issuing office in their home country.

A quit claim deed, sometimes incorrectly referred to as a quick-claim deed, is a legal document that transfers the owners interest (the grantor) in real property, to a new owner (the grantee). The grantor thus quits his right to the property. Hence the name; quit claim deed.

Pursuant to Florida Statute Section 201.02, a documentary stamp tax is imposed on all documents that transfer interest in Florida real property. Examples of document that may transfer interest in real property include: warranty deeds, deeds in lieu of foreclosure, and quit claim deeds.

Remember as child those long rides to a summer vacation destination in the back of the family car? They seemed interminable. Cries of “ Are we there yet?” echoed through the car. The process of reaching your destination appeared endless, and that can be what it feels like to be the Seller of a short sale property.

Despite what you read in the newspapers the processing of a short sale is still imperfect. Numerous variables to contend with and without proper management, frustrations may run high. However, here are a few things you can do to assist with the process and to avoid any additional issues or hurdles.

1. Consult an attorney and/or tax professional for advice regarding your particular situation. Every short sale is different so you can’t assume yours will be the same as someone you know who went through one already.

Many homeowners find themselves swimming in a pool of financial strain. While the mortgage is typically the largest debt obligation a person has, often, it is not the only financial burden keeping a borrower up all night. Mounting credit card debt, outstanding medical bills and even unpaid taxes are some common sources of stress and can contribute to the feeling of a heavy weight on someone's shoulders. The combination of these debts along with an upside-down home can leave a borrower distraught.

The thought of filing bankruptcy is horrifying for many people and they begin to seek for alternatives. But what can you do if you have fallen behind or have stopped making regular payments? Harassing phone calls, threatening letters and other tactics are used by the creditors to encourage borrowers to pay. Depending on the circumstances, it is possible to stop the stress, phone calls AND avoid bankruptcy.

In many cases, these debts can be settled with creditors for less than the full balance due.