RealtyTrac is chock full of information about foreclosure trends. Here's a map of Mecklenburg County's foreclosure hot spots based on September 2011 data. The Charlotte region leads the state in the number of foreclosures.We wish more Charlotteans at risk of losing their homes educated themselves and this series we wrote on foreclosure is a good place to start.For answers to your specific … [Read more...]
Let’s Not Over-use “Strategic Default”
August 18, 2010 By
We've had a few new potential clients who've contacted us recently, wanting to talk about "strategic default."Strategic default is the term used to describe a property owner's decision to stop making mortgage payments and otherwise default on his or her obligations to the lender, despite having the ability to afford it.In our law practice, it is rare to meet and work with clients who have … [Read more...]
Doesn’t the IRS Say My Debt Forgiveness Income Can’t Be Taxed?
April 14, 2010 By
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...]
Strategic Default: Part 2 of 3
March 29, 2010 By
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. After he talks about the bankers testifying on Capitol Hill, he gets to The Word: "Honor … [Read more...]
Strategic Default: Part 1 of 3
March 23, 2010 By
"Strategic default" is a conscious decision by a borrower to stop paying the mortgage(s) on a real property even though the borrower can afford the payment(s). It can happen for a number of reasons and is not a decision to be made lightly or without education about the legal, tax and credit consequences. We have counseled clients about strategic default in these common scenarios: [note]The … [Read more...]
Who Defaults, and Why?
December 18, 2009 By
This month we've run a series for distressed homeowners and published NC foreclosure data. To round out our coverage on the topic I want to discuss a paper written by James E. Rogers of the University of Arizona's College of Law because it runs counter to what people generally believe is happening with people "walking away" from their mortgages.Professor Rogers says most homeowners continue to … [Read more...]