Need help with foreclosure? Well guess what? Today is your lucky day, because you have stumbled on to the best resource center which will help you with foreclosure. Relax, with my tips, you’re not going to end up losing your home. I understand what it’s like to continuously be in the fear of being thrown out of your own home, so trust me, I can totally relate. Here’s what you can do if you can’t pay the mortgage anymore

Tips You Can’t Go Wrong With

-Do not ignore the problem. People tend to run away from their problems if they have the option to. I’m telling you here and now, that running away is definitely not an option here.
-Maybe it’s time you found those mortgage papers again and become acquainted with your mortgage rights. Then you’ll get to know what exactly it is that your lender can do if you are unable to make your payments. You might even find that it’s not all that bad!
-Use all the assets at your disposal. We may not even realize it, but we do have the means to pay off our mortgage! Do you have two cars? Well do away with the useless luxury and use it to pay a bit of that home loan. Same goes for jewelry or even a life-insurance policy! You can always get one later!
-Do a quick list of your spending priorities. It’s amazing what a little bit of organization can achieve. Assign top priority to medical expenditure and the very next on the list should be your housing loan! No shopping, or grocery or even those seemingly necessary (but in actually fact, totally unnecessary) items you need to spend money on!
-When you get mail from your lender, RESPOND to it. Ignoring it is not going to help any and will in fact, just worsen the situation. That might actually lead to a speedier foreclosure.

Full Article

For More Information Visit: http://www.floridalawattorney.com

The best short cut to completing a short sale is actually having the lender sell the note to the property buyer. Yes, often the lender will consider selling the note at a discount when it won’t do a short sale. The difference to the lender is the cost and time saved in selling the note versus the drawn-out time required to complete a short sale.

The options to the lender are to:

1.) complete the foreclosure through the court system, which it will have to do if there are additional liens against the property that must be “extinguished”,
2.) complete a short sale to an investor who may or may not close on the transaction, despite having given a deposit and showing proof of funds, or
3.) selling the mortgage note to a buyer in a few days at a discount they would have accepted on the short sale, and have no further headaches.

Generally this decision is an easy one in accepting the best offer that nets the lender the most money in the least time. However, some lenders have policies about what discounts they will take and often they have an internal policy of not selling their single mortgages at a discount to investors. This varies greatly from lender to lender and I am always surprised when I make an offer only to be told that the loss mitigation representative says “I’m not sure”.

If we want to make an offer to the lender to buy a note, we preface the conversation with “We often buy the mortgage note (trust deed) at the same discount we would pay for a short sale and we continue the foreclosure”. We go on to explain that the lender can be out of the mortgage in seven days or less instead of 30 – 60 days or more. The benefit to us as investors is to get the transaction done and know we control the property. You do not have to have the deed to the property because you can continue the foreclosure and get the property at auction.

Full Article

For More Information Visit: http://www.floridalawattorney.com

When a bank has to take back property from someone who can no longer pay the monthly mortgage, the bank will start a foreclosure process. Reaching the final stages before the bank reposes a home is called pre-foreclosure. The owner still owns his or her home and still has time to make payment before final repossession. Many new real estate investors are unaware of the benefits of buying pre-foreclosures. One of the best ways to buy a home is pre-foreclosures, although there are many other methods of buying used homes. Some of the prices associated with pre-foreclosed homes are the lowest in the industry. The owners of homes that are about to be foreclosed are very willing to accept a greatly reduced price for their home because the have no choice about whether or not they sell their home. These owners will often be happy to sell their homes for even fifty percent below the market value. If you’re looking to save the most money possible there is no better time than this. Another benefit from buying a pre-foreclosed home is that you will be able to make the deal with the owner directly. This will enable a level of control for the buyer by eliminating a third party, and allowing the buyer control of the purchase. If the owner of the home decides they do not want your offer, and they do not find another offer, then the homeowner will lose the home without making any money. If you offer only a small amount, the owner will still be able to make some money from the home rather than making nothing.

Full Article

For More Information Visit: http://www.floridalawattorney.com

Home foreclosure usually happens when the borrower defaults on their real estate mortgage payments. This is when the steps of foreclosure begin. The lender, commonly a bank, will file a Notice of Default and will try to recover the property from you. In many cases however, you are usually given a one year grace period to update your loan and reinstate ownership of the property. During the grace period, you, being the borrower and the homeowner, also have the option to sell the property to a third party and pay off the entire loan. This will prevent a foreclosure record on his credit history.
Understandably, we all want to avoid foreclosures for the fear of being evicted from our homes. In order to avoid this distressing situation, it is important to know the reasons why homes get foreclosed.
Poor Economy
This is the first on the list, and is mostly attributed to the global financial crisis we are all experiencing – which it should be noted has it’s roots in the whole sub-prime lending disaster. Interest rates took a hike and people started losing jobs. Many people entered into a loan agreement without reading the fine print, and it is just too late when they realized that that they could not keep up with the monthly amortizations because of the high interest rates. So if you are considering of taking on a mortgage, it is best to read the contract several times and look out for hidden charges. Better yet, consult a lawyer and be critical of the contract before inking the deal.
Over-spending
The most common reason for home foreclosure typically involves one’s ability to handle money. Spending beyond your means, gambling and addiction more often that not lead to home foreclosures. So get a grip of yourself and get rid of these bad habits before you find yourself unable to keep up with your financial obligations. Bankruptcy is an option that will allow you to keep your home.

Full Article

For More Information Visit: http://www.floridalawattorney.com

Like it or not, repossession can be a reality even for both the poor and middle classes. Its not just those on low incomes that are affected. In today’s current economic age it is affecting a wider audience. Often individuals facing this problem once summoned to court believe they have no way to stop it. However, there is always a way to solve every problem. There is a solution to staying in your own home which for many is the most important thing. If you have fallen in to arrears or missed your secured loan payments then you will inevitably be contacted by your loans company. Your lender will pursue your money and your eviction could be imminent. So what can you do?

Any one that has faced repossession without exception wishes without doubt that they’d had another option as after all, your home is your home. Repossession should be your final option. Therefore take control and do something before it’s too late, no matter how late it may seem. A quick house sale and access to your equity or cash, can bring the control back to you for you to move in your life. So how do you do it? You can do this even if you have already received a notification of a court hearing. You can also do this even after receiving notice of eviction! There are fast House Sale solutions available that do not incur any expense. This is quicker and more reliable than an auction or estate agent and the price can often be guaranteed so that you can start planning again. You can even sell and rent the property back so you never actually have to leave. This is very popular for example when you are tied to the area for schools and neighbours for example.

This method will give you access to your equity. You can use the cash to settle other debts and even reach agreement with the debt companies on an up front and final payment at a discount. Your credit file will also remain in tact allowing you to rebuild when your circumstances change. The monthly rental payments will also be at a reduced rate through sale and rent back as this is a legal requirement. If you have a committed buyer guaranteeing the sale, the courts will take this on board and stop proceedings. You can even get support in your court hearing from the buyer.

Full Article

For More Information Visit: http://www.floridalawattorney.com

Losing your home is hard enough, but you also lose your credit as well. Then, after the shock of this loss you realize that you are going to have to face a daunting task and that is to rebuild your credit after foreclosure. Here are three tips that can help you in this task so you can get your life back on track.

The first tip that you will want to utilize is to make sure that you talk to your creditors and work out a plan to pay off any of your outstanding debt. The faster that you get this outstanding debt paid off the faster you will start getting a higher score.

The second tip is if you want to get started quickly is to get a new credit card with a very low limit on it. Once you have this do not use it except once in a great while and pay it off in full as soon as possible. By paying it off and not having a balance carried on the credit card you will not have the interest charges nor will you have an extra bill each month.

The third tip is one more of self control on your part and that is to establish a budget. If you have a budget set in stone and stay within that goal that you have set for yourself you will start saving money each month. With the money that you are saving you will want to place it into a savings account which will look better as an established account in lenders eyes.

Full Article

For More Information Visit: http://www.floridalawattorney.com

When it comes to foreclosure help you need to learn how to be as self-reliant as possible. You must seek out the help you need right away. Bear in mind that in buying your home you had professionals such as a real estate agent and a lawyer help you with the process. Now you need professionals to help you to hold onto your home.

One of the first steps for foreclosure help should not be the government but one of the many not-for-profit agencies that operate across the country that offer housing counseling for a low fee or in some cases, for no money at all. Every state has these agencies. Take some time to do a search over the Internet for the one closest to you.

When it comes to foreclosure help, look for the agencies that list “Mortgage Delinquency and Default Resolution” as one of their many services. Get in touch with one of these agencies at the first sign of trouble. Whatever you do, do not wait! Time is of the essence. The people who work at these agencies have their own methods of negotiation that can be very beneficial to those facing the threat of foreclosure on their homes.

You then need to get yourselves as organized as possible in terms of paperwork regarding your home. Housing counselors are inundated with those seeking their help so the more organized you are, the better service you can expect to receive.

What type of paperwork do you need to provide to the housing counselor you are assigned to? You will need a variety of items including:

· All written communication you have had with your lender, including letters and/or email correspondence 
· Your two (and in some cases, three) most recent statements for your mortgage 
· Foreclosure notices you have been sent and/or complaints regarding a court or sheriff’s sale 
· Your insurance policy for your home if you pay it directly 
· Your last two month’s pay stubs from your workplace 
· Your bank account statements for the past two or three months 
· Your last two tax returns 
· Proof of other additional income such as a second job, freelance work, child support, alimony, disability income, SSI, rental income and so on.

For more information please visit: http://www.floridalawattorney.com

 The Mortgage Forgiveness Debt Relief Act  generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

The amount excluded reduces the taxpayer’s cost basis in the home. The questions and answers, below, are based on the law prior to the passage of the Mortgage Forgiveness Debt Relief Act

1. What is Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

2. Is Cancellation of Debt income always taxable?

Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

• Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
• Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you.You are insolvent when your total debts are more than the fair market value of your total assets.Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended if you believe you qualify for this exception.
• Certain farm debts:If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.The rules applicable to farmers are complex and the assistance of a tax professional is recommended if you believe you qualify for this exception.
• Non-recourse loans:A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.However, it may result in other tax consequences, as discussed in Question 3 below.

3. I lost my home through foreclosure.  Are there tax consequences?  

There are two possible consequences you must consider: 

• Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans.)
• A reportable gain from the disposition of the home (because foreclosures are treated like sales for tax purposes).(Note: Often some or all of the gain from the sale of a personal residence qualifies for exclusion from income.)

Use the following steps to compute the income to be reported from a foreclosure:

Step 1 - Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section.  You have no income from cancellation of debt.)

1. Enter the total amount of the debt immediately prior to the foreclosure.___________
2. Enter the fair market value of the property from Form 1099-C, box 7. ___________
3. Subtract line 2 from line 1.If less than zero, enter zero.___________

The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C.  This amount is taxable unless you meet one of the exceptions in question 2.  Enter it on line 21, Other Income, of your Form 1040.

Step 2 – Figuring Gain from Foreclosure

4. Enter the fair market value of the property foreclosed.For non-recourse loans, enter the amount of the debt immediately prior to the foreclosure ________
5.    Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.)                                    ____________
6. Subtract line 5 from line 4.  If less than zero, enter zero.   

The amount on line 6 is your gain from the foreclosure of your home.  If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000 (up to $500,000 for married couples filing a joint return) from income.  If you do not qualify for this exclusion, or your gain exceeds $250,000 ($500,000 for married couples filing a joint return), report the taxable amount on Schedule D, Capital Gains and Losses.

4. I lost money on the foreclosure of my home.  Can I claim a loss on my tax return?   

No.  Losses from the sale or foreclosure of personal property are not deductible.  

5.  Can you provide examples?

A borrower bought a home in August 2005 and lived in it until it was taken through foreclosure in September 2007. The original purchase price was $170,000, the home is worth $200,000 at foreclosure, and the mortgage debt canceled at foreclosure is $220,000. At the time of the foreclosure, the borrower is insolvent, with liabilities (mortgage, credit cards, car loans and other debts) totaling $250,000 and assets totaling $230,000.

The borrower figures income from the foreclosure as follows:

Use the following steps to compute the income to be reported from a foreclosure:

Step 1 - Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section.  You have no income from cancellation of debt.)

1. Enter the total amount of the debt immediately prior to the foreclosure.___$220,000__
2. Enter the fair market value of the property from Form 1099-C, box 7. ___$200,000__
3. Subtract line 2 from line 1.If less than zero, enter zero.___$20,000__

The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C.  This amount is taxable unless you meet one of the exceptions in question 2.  Enter it on line 21, Other Income, of your Form 1040.

Step 2 – Figuring Gain from Foreclosure

4. Enter the fair market value of the property foreclosed.For non-recourse loans, enter the amount of the debt immediately prior to the foreclosure. __$200,000__
5.  Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.)                                        ___$170,000__
6. Subtract line 5 from line 4.If less than zero, enter zero.___$30,000__

The amount on line 6 is your gain from the foreclosure of your home.  If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000 (up to $500,000 for married couples filing a joint return) from income.  If you do not qualify for this exclusion, or your gain exceeds $250,000 ($500,000 for married couples filing a joint return), report the taxable amount on Schedule D, Capital Gains and Losses.

In this situation, the borrower has a tax-free home-sale gain of $30,000 ($200,000 minus $170,000), because they owned and lived in their home as a principal residence for at least two years. Ordinarily, the borrower would also have taxable debt-forgiveness income of $20,000 ($220,000 minus $200,000). But since the borrower’s liabilities exceed assets by $20,000 ($250,000 minus $230,000) there is no tax on the canceled debt.

Other examples can be found in IRS Publication 544, Sales and Other Dispositions of Assets, under the section “Foreclosures and Repossessions”.

View Full Article

For more information please visit: http://www.floridalawattorney.com/

Foreclosure “rescue” scammers steal your home, equity, and money. Here’s how to protect yourself.

As record numbers of homeowners are defaulting on mortgages and are at risk of foreclosure, foreclosure rescue scammers are coming out of the woodwork in droves. These people and companies pretend to help homeowners facing foreclosure, but instead steal homes, equity, and money — leaving the former homeowner in a more desperate financial state than before.

Don’t become the latest victim of these scams. Learn how the scams work, what the scammers are like, and how to protect yourself.

More Foreclosures Bring More “Rescue” Scams

Due to the current credit crunch and less-than-careful lending practices by banks, more people are having trouble paying their mortgage. And because the housing market is in a slump, it’s harder for homeowners in financial distress to sell their home (the sale price often doesn’t cover the mortgage) or refinance on better terms. The result is a dramatic increase in the number of people facing foreclosure.

Enter the scammers. Foreclosure “rescue” is rampant for some very good reasons:

• There are lots of potential victims.
• It’s easy to find victims because the notice of default is public record (the lender must record the notice of default with the county recorder), and nowadays this information is often computerized.
• People are desperate.
• Usually, a lot of money is at stake.

How Do the Scams Work?

The methods scammers use to rip off homeowners are extremely varied. But most of them fit into three broad categories.

1. Sale-Leaseback Scams

In these schemes, foreclosure scammers prey upon the overarching desire of many homeowners — to stay in their home. The foreclosure scammer tells the victim that the scammer will buy the house so that the mortgage is up to date and the homeowner can rent the home indefinitely and then buy the home back from the scammer. Unfortunately, the rent payments and buyback provisions are usually so onerous that homeowners can never buy the home back.

2. Charging High Fees for Little or No Services

Some foreclosure scammers pretend they are legitimate foreclosure consultants (to learn more about legitimate consultants, see “Protect Yourself: How to Avoid Foreclosure Scams,” below) and then exploit the homeowner’s trust by:

• charging exorbitant fees for services the homeowner could easily have performed himself
• charging fees for services they never perform, or
• taking steps that hurt the homeowner.

These schemes cause the homeowner to lose much-needed money. Worse, because the homeowner believes the foreclosure “consultant” is handling the situation, the homeowner does nothing during the crucial time period when action must be taken. By the time the homeowner realizes he has been scammed, it is too late to get current on the loan, negotiate with the lender, sell the house, or find effective assistance.

3. Stealing the Home Without the Homeowner’s Knowledge

In these schemes, the foreclosure scammer gets the homeowner to unwittingly surrender ownership of the home. Often, the foreclosure consultant promises that he will bring the mortgage up to date and allow the homeowner to stay in the home, setting up a payment plan for the homeowner to pay him back. The victim doesn’t realize that the home has actually been sold to the scammer (usually at a ridiculously low price) and ends up paying extremely high rent to stay in the home.

Sometimes, the homeowner believes she is merely signing new loan documents to bring the mortgage current, but instead is signing title over to the scammer. Or the scammer may simply forge the homeowners’ signature on documents.

Profile of a Scammer: What to Look For

The people and companies that prey upon homeowners in foreclosure use many tactics to gain the homeowner’s trust. Here are some examples:

• The scammer contacts you by telephone, mail, or even knocks on your door (legitimate foreclosure consultants don’t seek you out, you must go to them).
• The scammer is smooth-talking and preys upon your desperation.
• He provides little or no information about the foreclosure process.
• Many scammers claim government affiliation.
• They often use “affinity marketing” — Spanish-speakers marketing to Spanish-speakers, Christians to Christians, senior citizens to senior citizens, and so on.
• Some offer “testimonials” from other customers.
• They claim the process will be quick and easy (dealing with foreclosure is never quick and easy) and use messages such as: “Stop foreclosure with just one phone call” or “I’d like to $ buy $ your house” or “Do you need instant debt relief and CASH?”
• They tell the homeowner to cease all contact with the mortgage lender.

Protect Yourself: How to Avoid Foreclosure Scams

If you are having financial troubles, believe you may lose your home, or are in foreclosure, here’s how you can make sure that you do not become a victim of a foreclosure scam.

View Full Article

For more information please visit: http://www.floridalawattorney.com/