Steerpike

I posted my specific experiences in another thread, but in short - The place was a short-sale; I made an all-cash offer (using a line of credit) very close to asking; there were two other offers that I'm aware of; my offer was accepted by buyer, and was approved by the lenders within 30 days or so (even with two lenders involved) and I closed very quickly - none of the horror stories I'd heard from everyone. The place I got had sold for ~$300k just two years ago (at almost 100% financing), and I ended up paying about $150k, so the lenders took a huge loss. I was fully expecting a nightmare but it went as smooth as silk. I've only done this once so I can't say this is typical, but - all I can say is - don't let the horror stories put you off! I watched prices for about 3 months, and decided the asking price was pretty reasonable. I suspect that in some short-sales, the seller is asking for a very low price and the lenders are balking at accepting.

snowbunny

By now you probably know this, but:

* there are federal tax implications vis a vis mortgage interest deduction, business expense, etc;
* there are state income tax AND state property tax implications, mostly to do with which house is your primary residence and which house is your secondary residence.

For the first year of ownership I'd highly recommend having someone do your federal and state income taxes and look over the property tax situation as to whether you can choose to designate one residence as primary (your circumstances may already dictate which one is, probably the one in which you spend the most time). Getting the properties designated correctly from the outset is the biggest headache.

After that first year, you more or less keep doing the same. The taxing entities should send you information on any changes they make regarding rules and rates.

Good luck and congrats on your new pad!

Noorah101

Thank you!! hehehe.

Our situation is a bit different because we only OWN property in AZ. But my husband rents property in Los Angeles, and spends most of his time there working. He's self employed, and the business is registered in AZ, because that's his primary residence. He stays in LA at his clients' requests.

We do a Federal tax return, plus an AZ tax return, plus a CA tax return. For the CA tax return, we only have to show that we've paid tax in AZ, we file the CA return, but don't pay any tax.

All of hubby's expenses in LA are tax deductable because he's there at his clients' requests. All his travel back and forth (every 3 to 4 weeks, regularly) are tax deductable.

Just some random thoughts that might help somehow.

Rene

Tarkak9

glad to hear that it went smooth for you! Its refreshing to hear straight forward transactions. Often there is a whole lot of waiting, it all depends on the bank(s) involved and really the person at the bank(s). Eg, some peeps of mine submitted an offer back in April and still haven't heard anything. There are horror stories, and yes, don't let them put you off, but also, don't think its as rosy as what HGTV and the likes will make it out to be either!! The biggest annoyance is that the bank can change their minds even after giving their initial approval. As like with anything, there is certain risk involved.

Often the banks say to the owner "get an offer then we'll talk" (with no guarantee that they'll accept the pay offs) so yes, there trying to get something to go and present to the bank. What banks often fail to understand is that short sale offers ARE market value, so owners are listing at what is potential market value. I am beginning to hate short sales!

The next big bubble is to be commercial real estate... which has already started.

Sally Redux

Well that was confusing...I kept thinking, "Didn't you already buy somewhere in AZ?"