“In an increasingly difficult real estate market, buyers and sellers are looking for non-traditional methods for generating transactions and moving properties,” explains attorney Craig Long. “One option, that is quickly gaining popularity, is the Short Sale.”

Increasing demand for more information on short sales is what led Craig Long, LLC to bring this seminar series to Atlanta. Tal’s firm, I Short Sale, Inc., boasts a success rate 50% higher than other agents in closing short sales and will share his proven process with attendees of the event.

The seminar is open to the public and a must attend event for realtors who want to learn more about how to generate transactions using a short sale strategy, distressed homeowners evaluating whether a short sale is right for their property and homebuyers who want to know how to recognize a short-sale candidate.

Seminar Registration Information:

Two sessions of the seminar will be held on Thursday, November 13, 2008.

Morning (9 AM – 11:30 AM)

Smoke Jack Southern Grill

29 South Main Street

Alpharetta, Georgia 30004

Afternoon (2 PM – 4:30 PM)

Metro South Association of Realtors

1671 Adamson Pkwy., Ste. 100

Morrow, Georgia 30260

Registrants should call 678.679.0680 ext 103 and indicate their preference of morning or afternoon session.

About I Short Sale, Inc.

I Short Sale, Inc., is a leading nationwide short sale advisory firm that has assisted, through its principals, thousands of lenders and property owners in the intricate business of short sales, modifications, forbearances, deeds in lieu and other loss mitigation solutions. Since 1991, I Short Sale has been assisting distressed property owners and industry professionals by offering mutually beneficial solutions that help property owners and lenders avoid the lengthy and costly process of foreclosure, the stressful act of eviction and the REO sale that follows. To learn more about I Short Sale or find out about upcoming seminar series, email info@ishortsale.com or call (877) 90-SHORT.

Sacrifice: The interests of others supersede our own

Value: Our clients, our associates and our work are priceless

Accomplishment: The byproduct of the preceding principles

When someone initially purchases real estate, and they borrow money, the lender is charged a fee for a Lender’s title insurance policy. The owner has the option to purchase an Owner’s title insurance policy. Whether the borrower decides to purchase an Owner’s title insurance policy or not, the lender will not loan money without being issued a title insurance policy protecting the lender’s secured interest in the property. Rather than paying the fee for the policy, the lender passes the cost on to the borrower by including the fee in the borrower’s settlement charges.

As for refinancing the property initially purchased, a new loan represents a new risk of loss for the refinancing lender because of a potentially different priority position or level in the property. Consequently, there are new legal risks of loss for the lender, so the lender will require a new Lender’s title insurance policy.

The title insurance premium charged for the Lender’s title insurance policy on the refinance should be less than the premium charged at the purchase because of “Reissue” rates. Title insurers charge Reissue rates when an interest being insured has been previously insured by a “reputable” title insurance company within the last ten (10) years. The reissue rate charged by Craig Long, LLC, who underwrites title insurance for Stewart Title and Guaranty Company and Chicago Title, is sixty (60%) percent of the previous market, or published, rate charged. However, if the lender and borrower were given a discount, the Reissue rate does not apply.

Another fee charged and itemized on page two of the HUD-1 Settlement Statement is Intangibles taxes. When a purchase of real property occurs and the buyer borrows money to make the acquisition, the seller conveys to the buyer an interest in the property and the buyer in turn conveys to the lender an interest in the property. These interests obtained by the buyer and lender are “intangible” personal property rights the State of Georgia has decided to tax. The State of Georgia taxes a lender’s “intangible” property at closing and the lender makes the borrower pay the tax for the lender.

In a refinance context, the Intangibles taxes can be mitigated and possibly avoided. The regulations of the Georgia Department of Revenue provide that Intangibles taxes are not assessed against the part of the new loan that represents a refinancing of the current unpaid principal. Any amount over and above the current unpaid principal represents “new” money being loaned and is charged the normal Intangibles taxes of $1.50 per $500.00 of debt. For example, if I borrowed $100,000.00 last year and now have an unpaid balance of $95,000.00 and call you to borrow $110,000.00; I will pay Intangibles taxes on the difference of $15,000.00, or $45.00, rather than on the $110,000.00, or $330.00, if I borrow money from the same lender.

These two fees charged to borrowers on the HUD-1 Settlement Statement can be significant. You now know how to help mitigate these fees for your clients and hopefully close more transactions by reducing the costs. Give us a call at 678-679-0680 if we can help you succeed this year.