avoiding foreclosure: The Dreaded 1099-C
- 04/14/08 02:00 AM
Here's what a blank form looks like. In a Short Sale or Foreclosure this is what the Lender might chose to file (a foreclosure might send you a 1099-A too). Like any other 1099, one copy goes to the taxpayer (you) and another copy goes to the IRS.
(click to enlarge) The most important box is
Box Number 2: Amount of Debt Canceled This is not your loan balance. It's your loan balance, plus every single little nit picking fee the Lender can tack on. Add penalty and fees too! In a Foreclosure, these fees and … (8 comments)
avoiding foreclosure: California Notice of Default Law
- 02/20/08 06:29 AM
I was just asked this question and had to look it up.I figured it was worthy of a post.In California, if the property is in Notice of Default (NOD), and the purchaser does not occupy the property (Investor), the transaction becomes what is called an Equity Purchase.That's important because there are specific rules that need to be applied and adhered to. Here's the actual question:"I plan on buying a home that is in foreclosure and flip it, But I just heard the seller (homeowner) has a 2 year right of rescission. What does that mean? Do I have to hold the … (6 comments)
avoiding foreclosure: Project Lifeline
- 02/12/08 02:43 AM
Project Lifeline Will it help? It's an addition of the Hope Now Alliance. If you are 90 or more days late on your mortgage this new "plan" is aimed at you. Typically a lender doesn't even start the process before the loan is 90+ days delinquent. 6 large lenders are said to be on board. They will stall the foreclosure proceedings for 30 days and give you a chance to catch up, refinance, short sell or modify your loan. Not sure about other states but here in California the homeowner has the right to postpone the trustee sale. It's not complicated, … (2 comments)
The point that I'm trying to make is that, just like my inaccurate title above Just because you heard it - doesn't mean it's true! maybe you've heard some of these statements... You have to be behind before they'll modify your loan.A Short Sale takes forever to get approved.I'm going to Short Sale and also payoff my credit cards.Agents won't show your home if it's a Short Sale.The Government is forcing all the … (15 comments)
avoiding foreclosure: Definition: Forbearance
- 01/24/08 06:31 AM
One of the options you might have in avoiding foreclosure is sometimes called Forbearance. It's often spelled with an e (Forebearance) probably because of it's relation to Foreclosure. Forbearance or more accurately, a Forbearance Agreement is exactly that. It's an agreement between you and the lender. It generally allows you to stop making payments now, (temporarily) and add those payments to the end of your loan. Some forbearance agreements allow a gradual payback. Unlike other loans you might have, if you fall behind on your mortgage, in order to catch up you'll have to completely catch up. Your Visa card will … (12 comments)
avoiding foreclosure: The Trouble with Bubble Bloggers
- 12/06/07 09:06 AM
Beware of the Bubble Blogger. They might be right on some things, but they can also lead you horribly astray. That happened today. I read Keith over at HousingPanic all the time. (Yes, before you tell me, I already read Patrick too). So there I was... watching the Bush / Paulson plan live on CNBC. At the same time, I was watching my Google Feed Reader for bloggers reactions looking for the first one to post their response. I subscribe to well over 100 RE bloggers. That's when I saw the post. I'm guessing the emotion of the moment got the better of … (4 comments)
avoiding foreclosure: Real Estate "GURU" Caught Skimming
- 07/11/07 10:51 AM
Here's a trail of stories to read dealing with Equity Skimming. I started at this article in BusinessWeek by Dean Foust about Foreclosure Rescue Scams. It's a good article and worth the read. "... in which unscrupulous individuals or groups approach homeowners facing foreclosure and promise to help them save their homes. In many instances, they convince the troubled homeowner--who is desperate to save their homes--to transfer the deed over to them with the promise that the investor will make the mortgage payments going forward, and the previous owner can rent while they try to rebuild their savings and repair … (3 comments)
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