Buy The Truth About Your Bad Home Loan

The Truth About Your Bad Home Loan is a post from: Upside Down Mortgage

My home was foreclosed in 2008. I owed approximately 96K, including court and attorney fees. The home recently sold for 119K. My redemption period was over, so the lending bank sold the home through a realtor. Am I entitled to any of the excess monies?

If a foreclosed home sells for more than amount owed what happens to the profit? is a post from: Upside Down Mortgage

Can you buy a home if you owe your ex spouse money for child support? is a post from: Upside Down Mortgage

Do you still owe late payments on a mortgage after the home sells? is a post from: Upside Down Mortgage

Since the home value has dropped and the mortgage balance has not, people can easily find themselves having to downsize. Selling the home that they are upside down on is a natural solution. But with the real estate market the way it is, it might be hard to sell for what you are hoping for. You can either cough up the difference or let the bank foreclose and take the home. But that will destroy your credit and most people think that it means they cannot get into another home. This is not always the case. This book called "Who Says You Can't Buy a Home!: How to Put Credit Problems, Down Payment Challenges, and Income Issues Behind You -- And Get a Mortgage Now" can show you many ways of how you can buy a home even when your credit has been shot because you were upside down and then foreclosed on.

Buy Who Says You Can't Buy a Home!: How to Put Credit Problems, Down Payment Challenges, and Income Issues Behind You -- And Get a Mortgage Now (Paperback) at Amazon

Who Says You Can’t Buy a Home! is a post from: Upside Down Mortgage

Here is my situation. I purchased a home for $229k now the market value of this home is only 170k. It is a very nice home. Are there programs available for people in this situation? I was hoping that the government would have done something about this. I have good credit. Thanks for all the advice and help.

How to buy new home when upside down on current one?

How to Buy a New Home When Upside Down on Current Home? is a post from: Upside Down Mortgage

Bad circumstances can happen to anyone so anyone can be upside down on their mortgages. Therefore, it is good to know what to do to avoid the situation. You need to think about the problem before it occurs so that you can prevent it from happening. That means, you need to think about whether there is a chance of you being upside down and you end up owing the lender more than your home is worth any time in the future. You need to think ahead.

There are many resources that can help you. First, you can talk to a real estate agent. A good realtor will have a lot to offer as well as words of warning about what loans you need to avoid getting. You can talk to your realtor about getting pre-approved for a home loan with good rates and good terms. The subprime problem turned the real estate market upside down and now it is harder to get a loan.

With the possible upside down mortgage problem in mind, you can read more about how to best buy a home. By reading books, you are doing your own research and will not have to always rely on the information provided to you by your realtor. You can double the information and facts given by the real estate agent so that you will make an informed decision regarding buying a home.

Most people do not want to do the research because they just want to get on with buying when they find a home that they want to buy. But, by doing some research upfront, you can save yourself a lot of headache further down the road. The books will tell you what you need to do to protect yourself when buying a home.

Nolo's Essential Guide to Buying Your First Home (book with CD-Rom & Audio)

Will you ever be upside down

Will You Ever Be Upside Down? is a post from: Upside Down Mortgage

Fair housing is an important part of the federal laws and there has to be a federal department that makes sure that landlords or lenders comply with the laws. If you have a problem with mortgage companies or you think that you are being unfairly discriminated, then the US Department of Housing and Urban Development may be able to help you. Some people have never heard of this department of the government because they have not been or are not aware that they have been treated unfairly. Sometimes, they do not know what to do.

Enforcer of the Fair Housing Act

The Department of Housing and Urban Development enforces the Fair Housing Act and other federal laws that prohibit:

• discrimination and
• the intimidation of people in thier homes.

Fair housing is about equally access to rental housing and homeownership opportunities. That means, the law helps renters as well as homebuyers. It is illegal and in violation of federal laws for landlords to refuse to rent or sell homes to someone based on:

• race,
• color,
• nation origin,
• religion,
• sex,
• familial status or
• disability

Housing discrimination is illegal and the Dept of Housing and Urban Development will ensure fair housing for anyone seeking a place to live. Many homeowners with upside down mortgages were discriminated in ways that violate the Fair Housing Act.

US Department of Housing and Urban Development is a post from: Upside Down Mortgage

Selling home when upside down

Bear in mind, though, that if you are upside down, you are not going to get enough money to pay off your mortgage and you might have to pay some out of your own pocket. If you have the money to pay, then you will have no problem, otherwise, you might want to find a way to deal with this before you sell your home. A short sale is an example of what you can do to get you bank to accept less than what you owe.

The key to a successful home sale

If you are upside down, then you will want to sell your home fast and for as much money as possible. That means choosing the right person to help you sell. If you decide to hire a realtor, you need to choose one who is experienced to help you sell fast and for a high price. If you decide to sell youself (FSBO) then you might need to do a lot of marketing to get as many people to be interested in your home as possible.

Choosing a Realtor

Choosing the right person to sell your home is one of the most important steps of selling. Therefore, choose wisely. At a minimum, speak with 2 or 3 Realtors from different companies or agencies. Ask prospective Realtors the same list of questions, in order to compare their answers. Find out what they would do to sell your house.

Above all, choose a Realtor that you feel comfortable with and like. This person will help you make the biggest sale of your life, so find someone you think will do a good job!

The following is a list of questions that may be helpful to ask while speaking with prospective Realtor.

1. How many years have you been in business?
2. For how long have you sold houses in this area?
3. How many houses did you sell in the past year?
4. What is your commission?
5. If I were to work with you, how would you market my house?
6. Will you organize meetings with potential buyers and will you coordinate them personally?
7. Can you give me names and telephone numbers of other families that have used your services?

Lastly, if you want to solve your upside down mortgage problem, you might want to ask if they have any experience with upside down mortgages or short sales.

Selling Your Home When You Are Upside Down is a post from: Upside Down Mortgage

Buy Why the Poor Pay More: How to Stop Predatory Lending (Hardcover) at Amazon

Stop Predatory Lending Practices is a post from: Upside Down Mortgage

Buy STOP! Illegal Predatory Lending: A Self-Help Guide (Paperback) at Amazon

Predatory Lending Legal Remedies is a post from: Upside Down Mortgage

I'm trying to find out what the first step is and if my lender will be willing. My understanding of the new bill is that it is voluntary are the part of the lender, no mandatory.

I’m Upside Down. How Can the New Bill Help Me? is a post from: Upside Down Mortgage

Buy Understanding Mortgages: A Beginners Guide to Mortgages and Refinancing for the First Time Homebuyers (Paperback) at Amazon

A Beginners Guide to Mortgages and Refinancing for first time home buyers

A Beginners Guide to Mortgages and Refinancing for First Time Homebuyers is a post from: Upside Down Mortgage

Economic decline is having a detrimental effect and numerous Americans right this minute are feeling the hard times as increasingly, people are losing their jobs and their homes. High costs of gasoline and essential commodities are also making it tougher for American households to survive without extra money coming in. During these times, individuals are considering how to save money which is particularly true for families that support one, two or even more children. Between feeding them and getting them all to school, these families will surely have to cut back in some areas in order to survive.

Nevertheless, it's not just adults who need to be responsible because taking care of the finances in a recession, youngsters can also have an important role. In point of fact, they can use these tight times to instruct their youngsters about saving for the future. This will help them deal with tougher times in the future should they experience it when they have their own families to look after. Below are some of the methods that you can teach your children about saving up.

Oftentimes it is hard for parents to accept but our children can be understanding and when you explain the situation to them clearly, with examples that they can relate to, they will be able to understand. Many will even help you of their own volition without you telling them what they need to do, because instructing them as to the reasons why they should do something is more effective than telling them straight-out. The last mentioned will often antagonize them or will get them to rebel as they sense you are give them orders without any cause. Having money boxes may seem out-of-date in this digital age but it is nonetheless still impressive in teaching children how to save up.

Having coin banks may seem obsolete in this digital age but it is nevertheless still impressive in teaching children how to save up. Inform them that laying aside will allow them to have some cash should they need to buy something that they require. A share of their lunch money - for instance a quarter or two, is an excellent way to begin. Of course, do not deter them from purchasing food when they need to eat but inform them that if they are not in need of food, they can lay aside the money so that they can use more for the next day.

Overfeeding children is a problem so keep a handle on this which will help them to stop trying to get more than they can use. Always ask them to clean their plates every time - that way they will only get the food that they will be able to eat. This will teach them about saving and buying only the things that they require. This is a great coaching for the future so that they will not become adults with 'maxed out' credit cards, buying products that they do not really need in the first place. Let's be honest, whatever your kid does is only a reflection of what you are doing at home, so if you require the kids to start laying aside, make sure that you are also playing your role in saving in these times of economic slowdown.

How to Teach Kids to Save During Recession is a post from: Upside Down Mortgage

What is a 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 canceled 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 normally 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.

Example of a Cancellation of Debt

Here’s a very simplified example of how cancellation of debt works. 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.

Is it likely that your debt will be canceled?

When people cannot pay their mortgage payments, they hope that their debts will be cancelled, especially when they have upside down mortgages. However, the reality is that all lenders will do anything to recoup some of the money, if not all, first. Cancelling the debts is really something that they will not do if they can help it at all.

Cancellation of Debt is a post from: Upside Down Mortgage

The  Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. In this bad economic time and rising foreclosure rate, this Mortgage Forgiveness Debt Relief Act comes in handy.

What is meaning of The Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Debt Relief Act of 2007 basically provides for when you owe a debt to someone else and they cancel or forgive that debt. Usually when a debt is forgiven, the forgiver can then claim a tax deduction of that canceled debt while the debtor may have to pay taxes on that amount. The canceled debt amount may be taxable. However with this Mortgage Forgiveness Debt Relief Act of 2007 in place, taxpayers may 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, qualifies for the relief.

What Debts are Eligible for the Mortgage Forgiveness Debt Relief Act of 2007?

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 does not 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.

Where to Get More Information on this Mortgage Forgiveness Debt Relief Act of 2007?

More information, including detailed examples can be found in the IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

Mortgage Forgiveness Debt Relief Act of 2007 is a post from: Upside Down Mortgage

So many people cite personal finance problems as a leading cause of divorce and long-term, debilitating stress that it is rather surprising so few products are available that help people manage this important aspect of life. As well, given the severity of such problems, it stands to reason that dealing with financial problems needs to be done effectively. This will not only allow you to improve your own, financial and mental health, but will allow you to avoid dealing with difficult debt collectors.

The easiest way to start dealing with debt is to figure out your total debt obligations. Organize unpaid bills and debt from the lowest amount due to the largest. With these payments in mind, determine the amount you can repay every month. You will need to complete a budget to arrive at this number. For a more comprehensive strategy, prioritize debt based on the rates your creditors charge you. High-rate debt will take a higher priority than low-rate debt.

Debts that need to be paid immediately should always take priority. If they remain unpaid, the creditors have the ability to take severe action against you, which is something you do not want. Past due rent and mortgage payments are examples of ultra-high priority debts. If you are seriously past due and cannot repay any debt without risk, consider delaying payments until a full budget has been completed, which we discuss next.

The next step when dealing with debt and managing personal finances is to fine-tune your budget. This helps you calculate your monthly expenses and determine if there is anything "extra" that can get earmarked for debt repayment. Another advantage with preparing a budget is that you can pinpoint areas that you can reduce spending and, thereby, start saving money in terms of expenses.

If you are far past due, one way you can start dealing with debt is to talk with your creditors. Once you have completed a budget and decided the amount that you can afford to pay each month, you should negotiate with your creditors (if your financial situation warrants it) and agree on an amount that you can repay each month. You can either interact with them over the phone or write them a letter mentioning about your current financial situation.

Now that lenders are taking a bit of heat about responsible lending practices, nearly all of them offer third-party services to people who are having a tough time dealing with debt. These no-cost services will offer tips and knowledge about how to remedy your debt situation and regain control of your personal finances. If you are having problems surviving from month to month or if you are stressed to the max about whether you can overcome your debt, you should consider taking advantage of such programs.

Since every situation is unique, it becomes difficult to give general recommendations about dealing with debt and handling personal finances. However, the above guidelines certainly provide a basic overview. To take your personal finances to the next level, you should visit sites like Help Fix My Finances.com to work through your own, unique financial plan.

Dealing With Debt Effectively is a post from: Upside Down Mortgage

The Subprime Crisis

It was not long ago when the real estate market was booming. But then the subprime lending crisis hit the market and everything changed. At that time borrowers with bad credit were able to borrow a lot of money because of the homes they were buying. However, soon they saw their home values dropping unexpectedly. Many of them ended up in foreclosure. Today, about 50% of homeowners with subprime, risky adjustable rate loans have defaulted on their loans or they are already in foreclosure. In some states, the problem is worse than others.

The Prime Crisis

With a lot of subprime borrowers defaulting all at once, the values of homes fell more and more and a lot of lenders were forced out of business. The problem became so severe that the government had to step in and rescued many lenders and financial institutions. As companies are forced to downsize in order to avoid having to file for bankruptcy protection, they lay off workers. With the jobless claims rising, more and more people cannot afford to pay their mortgage payments even when they have good fixed rate, traditional mortgages and they also have good credit.

Foreclosure and Upside Down Mortgage

The problem is spreading even if the jobless claim number has fallen recently and new home sales number is encouraging. The number of people without jobs are still high and some of them are holding onto their homes but they will not be able to hold on much longer if they cannot find jobs soon. They will eventually be foreclosed on. If their interest rates rise and they cannot refinance, added to the fact that home values probably will not rise so soon, they are going to find themselves in an upside down mortgage situation.

The Upside Down Mortgage Problem is a post from: Upside Down Mortgage