Upside Down Mortgage

Archive for April, 2009

Mortgage Relief Act Of 2007

Question: If I let a mortgage go into forclosure will the tax debt relief act signed in 2007 help me?

This was my principle residents for three years. The original loan was for 84,000. I refinanced and it came up to 94,000. I refinanced again and it came up to 102,000. I know probably it might cover only the original loan of 84,000. Will the relief act not the bailout help me? How much phantom tax would I have to pay on the remaining 18,000? Thanks for your answers!

Answer: The best thing to do is AVOID foreclosure. If you are having trouble affording your mortgage, there are a few options you should try:
1. Short Sale
2. Loan Modification
Since the Debt Relief Act passed in 2007 any homeowner that sells their primary residence via short sale is not responsible for tax implications or loss incured by the lender.
A loan modification may help make the loan affordable, but you will usually have to pay a fee for this service. Try www.NationalShortSaleOffice.com. They are one of the less expensive companies out there and are reputable.
Good luck!

ABC6's Emily Reimer on U.S. Rep. Mary Jo Kilroy's Medical Debt Relief Act

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Mortgage Default Rules

Question: Is the trustee company suppose be listed on the deed of trust with the county at the start of foreclosure?

We are in foreclosure and I had heard that the one foreclosing on the house has to be on the deed of trust to foreclose. Upon checking the county records, the trustee foreclosing was not on the deed at the time of the first letter. The original mortgage broker was listed. In fact, MERS, Wells Fargo (our servicing bank) and the trustee were not listed on the deed of trust until several weeks after the first default letter. They were all registered the same date. Is this within the rules of foreclosing on a house? At what point is the foreclosing company to be on the deed of trust?

Answer: a day before the sale, otherwise they can't sell it.

Cox Questions Reliance on Credit Raters in Setting SEC Rules

Subprime Factor

Question: what is the main factor(s) that put US under recession now?

It was reported that subprime loans were the main factor. how does this loans contributed to the problems?

Answer: Also the prime loans.

Reason - layoffs

Subprime Factor - A Novel by Jeffrey D. Schlaman