Loan modification: A bad report card

Loan modification logo feds

HAMP, the government-sponsored entity put in place to help troubled borrowers, is not doing its job for homeowners facing foreclosure. The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has issued a report sharply criticizing mortgage servicers for failing to keep up with the volume of applications for mortgage modifications through the Home Affordable Modification Program (HAMP) -- as well as the Treasury Department for failing to do a better job of … [Read more...]

Update: Federal taxes on forgiven short sales

Update: Federal Taxes on Short Sales Forgiven in CA 2014   Since the Mortgage Debt relief act of 2007 expired in December 2013 there has been much confusion over the issue of the IRS tax on short sales in California.  Although we do not have a law currently in place defining the forgiveness of Federal Taxes on Short Sales in California for  2014 we do have a documented opinion from the IRS thanks to Senator Barbara Boxer. “The Internal Revenue Service Will Not Penalize California Families … [Read more...]

And the Oscar for foreclosures goes to …

academy statues for forecloser awards

It’s Oscar and Foreclosure season. What if the 84th Academy Awards had a few more considerations -- ones that tell the compelling story of the power of banks' greed. We are in the midst of the worst housing crisis our nation has known. Families losing their homes to foreclosures. The banking industry dictating homeowner negotiations short sales and foreclosure, even though the banks are not a principal in the transactions. Homeowners, not knowing who can help them save their homes from … [Read more...]

Impact of deficiency judgments in Calif.

distressed homeowners with deficiency

Here are two big pieces of the puzzle for distressed homeowners: deficiency judgments after a short sale, and the impact of foreclosures on deficiency judgments. A deficiency judgment is an unsecured monetary judgment against a borrower whose sale of property, secured by a promissory note, is insufficient to cover payment of the loan note in full. In a deficiency judgment, the seller would be found personally liable for the amount of debt remaining on a note after the sale of his or her … [Read more...]

Short sales fall to foreclosure by accident

Short Sales are a bit of a passion for me. Helping people avoid foreclosure has given me a great deal of personal satisfaction. Why else would I do them?? … They are a Challenge!!! Generally I am very even tempered and I do not go off on my professional associates ... Until today! I read an article that stated there are three main reasons a home goes into foreclosure. 1.  The seller wasn’t educated on their options. 2.  The bank simply foreclosed on the property. 3.  The … [Read more...]