Calif. enacts tax forgiveness on mortgage debt

IRS taxes

If you have suffered a short sale, foreclosure or loan modification, here's some good news: Most taxpayers can now exclude canceled mortgage debt income up to $500,000. The limit is $250,000 for married/registered domestic partner (RDP) individuals filing separately. The California law created by SB 401 now brings us into conformity with the federal debt-forgiveness laws and applies to debt forgiveness in 2009 and through 2012. However, California's limits of qualifying principal residence … [Read more...]

Is Calif. Short Seller debt forgiveness in peril?

Gov. Schwarzenegger vetoed a bill last week which would have been similar to the federal government's tax forgiveness on "phantom debt" for short sellers. His reason for the veto was the bill contained an unrelated provision regarding tax refunds for the state's largest businesses. Gov. Schwarzenegger is supporting the banning of taxation of mortgage debt forgiveness and called for the legislature to send him a bill to provide tax forgiveness before the April 15th tax deadline. According … [Read more...]

Lending banks are dripping out loans

Banks are Dripping out Loans and penalizing excellent buyers. It is amazing to me that no matter how much down payment a buyer has or how exceptional their credit scores it is impossible to get a loan without complications and costly delays. It seems as if the lending banks must have an intricate monitoring system that will only allow a specific number of loans within a risk analysis to be released. Logical on the lending side? Yes, Please…Could have used this in 2004. Continuing to … [Read more...]

Sellling your home Short? You are not alone!

Option ARM loans are resetting. Selling your home short?  You are not alone! Standard and Poor's reports about 93 percent of option-ARM buyers chose to pay a minimum amount less than the interest due. Many of these loans were taken out in 2004 and are close to their five-year reset when the loans convert to a standard amortization.  If the accumulated interest has pushed the loan-to-value ratio above 110 percent some of the more recent loans will reset early. One example of the … [Read more...]

5 Tips to Protect Yourself from Loan Modification Scams.

Direct from the Office of Attorney General here are 5 tips to avoid being scammed by "Foreclosure Consultants". 1. Never pay up front fees!!  "Foreclosure Consultants" are prohibited by law from collecting money before services are performed. 2.  Beware of "Foreclosure Rescuers".  These people attempt to convince home owners they can stay in their homes as renters and buy their homes back later. Sometimes they are part of a fraudulent bankruptcy filing.  Either way if you transfer … [Read more...]