Comments on: Mortgage Modifications – Very Ugly Re-Default Statistics

By: katleroy

katleroy — Fri, 06 Aug 2010 11:20:38 +0000

Also, I believe it is IRS Form 982 that the honeowner needs to file with their 1099. This allows the taxpayer to avoid paying taxes on the deficiency, if their financials show they are either insolvent or unable to pay. It’s still wise to see a CPA depending on the value of the 1099.

By: katleroy

katleroy — Fri, 06 Aug 2010 11:17:46 +0000

Sad stats, I agree. However, it should be noted that from a borrower’s perspective a good portion of these are falling apart because after one or two payments the lender is not forwarding the terms in writing and so the borrower’s are stopping making payments. They can’t get the originally outlined terms in contract form. I’ve encountered three people in just the last week that have had this happen. After fighting with the lender for months, and being elated they have saved their home, only months later to find the lender won’t fulfill their offer so they walk away. It is a shame what the lenders are doing to these homeowners. Instead of fighting for months with lenders it would be beneficial if those borrower’s close to FMV could refi into 3.25% loans with a small principal writedown, if necessary, it would save tens of thousands of homes from foreclosure and the mortgage companies billions in avoiding more foreclosures.
I watch the NODs daily and this wave of foreclosures is picking up at a drastic pace in these last few months, so it would behoove lenders to try and save those that are obviously suffering from recessionary income depletion. Just my two cents from the front lines.
I specialize in short sales, which is almost always a better route for the homeowner and the lender, which they will hopefully see after months/years of denying the numbers.

By: mnhomesolutions

mnhomesolutions — Wed, 19 May 2010 16:03:52 +0000

DG: On IRS no longer taxing difference on short sale..do you happen to have the link? THank you.
cj

By: DG

DG — Wed, 05 May 2010 19:34:21 +0000

Short sales and foreclosures are no longer taxable income if its on a primary residence. No need to pay a CPA when you can go to the IRS web site and see it written clear as day.

By: inline

inline — Mon, 09 Feb 2009 23:13:27 +0000

I suggest that before anyone attempts a “short sale” they should check with a qualified tax attorney or a tax accountant, preferrably a CPA, my understanding is that you would be taxed either as ordinary income or as a capital gain on the portion of the mortgage that was forgiven.

By: Andre

Andre — Wed, 03 Dec 2008 17:03:51 +0000

But the point is 500 were able to keep their property!
I think that number makes it worth the effort?

Right???

A 50% success rate is fantastic in my book!!

Right???

There’s enough investment opportunities for all of us.

By: Chris

Chris — Wed, 19 Nov 2008 19:40:29 +0000

One of the things about Barney Frank and Dodd both is getting as much attention on anything else so they don’t get investigated. The two of them are at the heart of the current mortgage meltdown and they know it.
Does McCarthy ring a bell in anyone’s head?

Once again it is a government regulation that requires the banks to wait until you are 90 days behind before they can do anything for a customer. Do you hear any talk by those idiots Frank or Dodd to change any of that? NO!
Chris B

By: jeff

jeff — Wed, 19 Nov 2008 17:59:23 +0000

The problem with loan mods and their failure rate is due to the fact that most institutions are not willing to modify any terms until the borrower is 90days late. That leaves all the people fighting to pay the mortgages, and doing so, at the back of the line. Barney Frank wants those 90+ day lates to go to the front of the line for loan mods (idiot). All that tells borrowers is to default, as they won’t get any assistance until they do!! Brilliant ideas coming out of the govt…

By: kalimah

kalimah — Wed, 19 Nov 2008 16:27:32 +0000

Wow, it’s a hard pill to swallow. I guess it’s a wake-up call that not everyone is financially/mentally prepared for the “american dream of home ownership”. Although we would like to think that everyone who wants a home, should own one, this seems to be evidence to the contrary.
Thanks for the wake-up call.