Reference Materials for Home Affordable Modification Program (HAMP)

Although the Home Affordable Modification Program (HAMP) has been widely reported as under-serving those in need, and hat has been our clients’ experience here,  if you are considering filing for bankruptcy protection or have already done so, and you have also applied for HAMP, this guide explains policies and procedures related to borrower outreach and [...]

A Roof Over Your Head or Your Credit Score?

Q:  I’m unemployed and will soon have to choose between paying the mortgage and paying my other debts. If the unemployment continues I’ll have to choose between feeding my family and paying any bills at all, including the mortgage. What can I do to preserve my credit score while I look for a job and [...]

Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?

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 [...]

Strategic Default: Part 3 of 3

Here are three common questions asked of my partner, Rick Mitchell, and me by homeowners considering defaulting on their mortgages. I can’t afford to pay my mortgage and my other bills. The house is under water. I’ve asked for a modification. How long do I have to decide whether strategic default is an option? I [...]

Debunking Strategic Default Myths

Myth: strategic default is limited higher-income debtors. In our experience, clients across the income spectrum have considered and engaged in strategic default. Myth: strategic default is limited to investment properties. In our experience, clients have strategically defaulted on primary residences as well as investment/rental properties and commercial properties. Myth: lenders are eager to avoid foreclosure [...]

Cash for Keys, Neither Simple nor Straightforward

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 [...]

Strategic Default: Part 2 of 3

The term “strategic default” has been in the news. With 25% of American homes valued at less than the balance of the mortgage, and some of those “underwater” mortgage holders out of work it’s no wonder. For those who can’t stay up late enough to watch Stephen Colbert, here’s a video clip on this subject. [...]

Cash for Keys?

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. Unless you file for bankruptcy protection, any time you [...]

Chapter 13 Bankruptcy: Individuals

Chapter 13 is a repayment bankruptcy.  It is utilized by individuals, and owners of sole proprietorships or other “mom and pop” businesses, not only to obtain a fresh start, but also to retain their assets and reorganize their financial affairs. For most individuals with debt problems, the major decision is whether to file for protection under Chapter [...]

Foreclosure Prevention Resources

To supplement our series for Distressed Homeowners, I found some resources to help preserve home ownership, avoid foreclosure, and protect against foreclosure and debt elimination scams. Before you work with a firm that claims it can help you “rescue” you from foreclosure be sure to familiarize yourself with: Foreclosure “rescue” and refinance fraud Fake “government” [...]

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