The new bill would give homeowners facing foreclosure a tax break when lenders forgive part of their debt. A provision of the bill that would amend a section of the tax code that allows the IRS to tax as income any debt that’s forgiven in a foreclosure sale, or when mortgage lenders agree to modify loan terms or allow short sales.
“The tax code already protects people who are insolvent or whose debt has been discharged in bankruptcy from having to pay tax when debt is canceled; therefore, the most financially stressed mortgage borrowers are already protected under current law,” the administration said in a policy statement.
But the change to the tax code should only be temporary, the administration said Tuesday, “to avoid distorting consumer and lender decisions on new mortgage loans” after mortgage markets emerge from the current “transition period.”
take a look at cnn money they are talking about how people dont believe in helping the homeowners in crisis
also take a look at this not sure if links can be posted http://money.cnn.com/2007/10/01/news/companies/bc.ca.countrywide.options.ap/index.htm?postversion=2007100110
Moe,
Kudos for your timely and well researched articles that impact the foreclosure industry. My home was foreclosed on and sold at a sheriff’s sale in July. I had asked WAMUT for ALL original documents from the closing (My initial loan was with Bank One , Ohio, and sold 3 times by the time WAMUT fore=closed). Their attorney (Shapiro and Felty –LOGS) declared that WAMUT had no copies of the documents, therefore denying me due process to defend myself in court.
I filed a RESPA request, and it was ignored. FINALLY after contacting the CEO’s office and talking to a “specialist”, WAMUT miraculously “found” all the documents I had requested for 7 months. They FedEx ed’ them to me, and there were documents that I had NEVER seen before! The appraisal was ludicrous. My home was worth about $119,000.00 in the market, yet it was appraised for $150,000.00. The Bank then issued me a open ended mortgage, as well as a HELOC due to the fact I had unknown equity of almost $30,000.00.
There were other problems with the origination documents. As I mentioned, it was the first time I ever saw these documents.
I am fighting like hell with WAMUT and they declared “It is now a Fannie Mae issue, since we are just the servicer, not the owner”. Oh, did I mention that MERS was listed as the Foreclosing entity to begin with?
Keep up the good work. Let’s all keep fighting for our rights, and especially the right of DUE PROCESS in defending invalid, or suspect, foreclosures, as they are lying to the courts. MERS has NO position of loss, they are just a NOMINEE. It seams they have bamboozled the courts across America, and as I see it, no attorney has the guts to dissect the actual laws that would stop this from happening to others. My bankruptcy attorney did not even REQUEST the original documents! I had to do it on my own, and I paid him over $2000.00 just to file a paper with the courts. He SHOULD have examined the entire portfolio, and would have easily found the discrepancies and defects that I uncovered. MORE lawyers need to do for their clients what I did on my own!
Is this still somewhere on CNN?
here ya go moe
http://money.cnn.com/2007/10/03/real_estate/bailout_backlash/index.htm?postversion=2007100316
Anthony,
Thanks for the stopping by!
Can you please be so kind and visit my forum at http://www.loansafe.org/forum/index.php I would love for you to share and help others going through this same things as you have. Many are not as savvy as you and cannot possibly even begin to defend let alone help themselves against these lenders and their lawyers.
That is one of the reasons that I am building an extensive network of mortgage law and real estate attorneys that can fight for homeowners and help them stop foreclosure.
This looks like a predatory lending case. Fire your darn BK attorney. These BK attorneys often give homeowner ill informed advice and tell them to claim bankruptcy when they should have spoke with a predatory lending attorney who knows what they are doing and can sue these lenders.
Have you found an attorney?
Regards,
Moe
Thanks so much! We need to unite and fight against these ill informed fools.
MOE,
I JUST POSTED THE E-MAIL IN A NEW THREAD”FORECLOURE SHAM, BAD BR ATTORNEY”
I hope this helps; keep up the good work
Anthony
2 homes were saved from foreclosure this month (April 2008) in California. Not by new loans but, by working on the existing loan. I was a third party to the negotiations mentioned and what I found out is most lenders have all these requirements for the employees, keeping them from being able to help, for fear of their jobs. This is not who you want to talk to, you’re looking for someone who can influence a decision for you. It really sounds easy but it’s far from it. Most of the time spent in the 5 months of talks, was sending and resending, faxing and refaxing, and talking to three different departments. So hang in there! And don’t quit.
Ask for help, it works.