Board Certified Specialist in Bankruptcy
All this talk about mortgage principal reduction and mortgage modification in the general press is incomplete and often confusing. People searching for answers can even find that information on government websites is too general for their specific needs. Take, for example, debt forgiveness income. This IRS page on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation says, in part: … [Read more...]
As my partner, Rick Mitchell, outlined in "Cash for Keys?" walking away from a mortgage obligation is neither simple nor straightforward. As with short sales, 90%+ of our clients have other debts in addition to the mortgage debt that's addressed in a deed in lieu/cash for keys offer and those debts remain after a deed in lieu or other "mortgage fix." For these people, a deed in lieu is at best … [Read more...]
What a great news day for Bank of America when it announced it would offer mortgage-principal forgiveness worth about $3 billion to 45,000 borrowers. The jury is (literally) out on whether it will be an equally good day for homeowners who can't pay their debts. Why it's too soon for troubled homeowners to rejoice When people can't make their mortgage PAYMENT a reduction in principal doesn't do … [Read more...]
The copywriter who thought up "Cash for Keys" did a good job. Unfortunately, the process isn't as simple as the catchy title implies. You don't simply hand the keys over to the mortgage company, take your $1000 to put down on an apartment and walk away. [important]Unless you file for bankruptcy protection, any time you sell or surrender your home for less than the balance due on the mortgage(s) … [Read more...]
In the first part of this series, we covered the misleading things that businesses advertise on television, radio and elsewhere for "debt consolidation" or "debt settlement" services. If you decide to enter into an agreement with a creditor, or want to fix a bad credit score keep these five things in mind. How to proceed with the agreement Get the settlement terms, in writing, from the … [Read more...]
Hardly a day goes by without seeing on television, or hearing on the radio, a commercial for "debt consolidation" or "debt settlement" services. Often, the ad includes a statement to the effect that if you owe more than $10,000.00 in credit card debt, you have the "legal right" to settle for less. Further, we frequently see clients who have paid hundreds or even thousands of dollars to a debt … [Read more...]
In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales. In the second post, we answered questions on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset. This post addresses questions on short sales and sifting through the confusing … [Read more...]
In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales. In this article we cover questions and answers on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset. Q: Can I legally prevent a foreclosure? First, there is very rarely any … [Read more...]
USAToday reported on the impact of loan modifications on credit scores this week. Selected paragraphs: A growing number of cash-strapped consumers are working with lenders to modify their mortgages so they can stay in their homes. But these modifications could wreck consumers' credit. A modification is typically a change in loan terms. Usually, the interest rate is reduced temporarily to lower … [Read more...]
In this week's Charlotte Observer story about tough times in the commercial construction sector, we learned that liens filed in Mecklenburg County against general contractors by their subs spiked by about 70% in the last two years. Experts say they will continue rising. The article sparked a lively discussion in the "comments" section online. What's a sub to do? Before you let the lack of … [Read more...]