AboutBill Iannelli Expertise Anything to do with residental real estate: Disclosure, title issues, buyer and seller representation, foreclosure, ethics, rentals, landlord rights, evictions, inspection, time frames, Arizona purchase contract.
Experience 20 years in the business. Broker owner of Iannelli and Associates. Have my own real estate radio show "Real Estate Matters" every Saturday afternoon at 1:00 on 1510 AM KFNN. Listen to past shows at my website www.realestatematters.org.
Own my own portfolio of real estate, developer of apartments, commercial real estate and single family homes.
Organizations National Association of Realtors, Member of both the Phoenix and Prescott multiple listing service.
Publications Desert Advocate Newspaper Carefree Arizona. Question and answer column. Broker agent news, TV and radio stations.
Education/Credentials Licensed Real Estate Broker, BS in Education, certified real estate instructor on the code of ethics.
Awards and Honors Don't want to brag. Not important to the public. They want answers and advice not me telling them how many millions of dollars of real estate I have sold
Question I bought my home in Gilbert about four years ago when the market was crazy for 238k, but over the past year we have had to move due to jobs 250 miles away. We recently purchased a new home and can no longer afford both. Homes in our old neighborhood are selling for 135-110k and have been on the market for 100-200+ days. Rentals are half of what our mortgage is and aren't even rented out. I am now almost two months behind on payments, and have been doing as much research as possible. My old home is not, nor has never been a rental, I never took out any other loans on it, I lived there for three years, but is is no longer my primary residence since we had to move and we just bought a new home. Would I have to pay taxes on the remaining balance whether we shortsale, deed in lieu or forclose? Everything I have been finding is all over the place and I'm confused. My CPA hasn't called me back and I have never been late on anything in my life, and am thoroughly confused. ANY advise would help, thank you.
Answer You should be ok but that does not mean the bank won't try to come after you for the taxes even though they may be wrong. If the money was purchase money to buy the home and you did not realize a gain there will be no tax. I would try and short sale to lesson the blow on my credit score. Get the final word from a CPA and the answer I gave you came from my CPA. Also my real estate attorney is in agreement. The gray area is that you purchased a new home and this is no longer owner occupied. You will need an answer from an Arizona CPA that is experienced with this type of situation. If you are interested in a short sale drop me an e-mail and we can try and sell it that way. I do many short sales and Gilbert is a hot market right now. Be careful about a deed in lieu. Have an attorney review the deed in lieu form from the lender should you decide this route. They sometimes slip in verbiage giving them the power not to forgive the debt.
my e-mail is bill@azrealestatematters.com or call me at 928-445-2753.
