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Archive for the ‘Mortgage Relief’ Category

Mortgage Forgiveness Relief Act Of 2007

Question: Countrywide Home Loans - Mortgage Forgiveness Debt Relief Act of 2007?

I am trying to complete my income taxes and I had a foreclosure in 2008. The Lender was Countrywide. I never received any paperwork from Countrywide stating the debt was forgiven. Does Countrywide report a 1099-C and why haven't I received a copy yet? Seeing as through Countrywide is the worse lender.... Does Countrywide even forgive the debt? The house is worth probably $50,000.00 and I owe then at least $125,000.00. That would mean I could be taxes on $75,000.00? Does the Mortgage Forgiveness Debt Relief Act 2007 discriminate against what type of loan, interest rate and income you had?

Answer: 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.

This is taken from the IRS publication

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.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

You need to consult your Tax Adviser for this because if you are insolvent then you may or maynot have to pay taxes. For example in Debt Settlement The debt forgiven may or may not be taxible depending on if you are insolvent.

The IRS considers $600 or more of forgiven debt as taxable income.[citation needed] The forgiving creditor must provide the taxpayer with a 1099-C tax form. This form will list the amount of forgiven debt and interest in Box 2. Taxpayers with portions of personal loans forgiven may not subtract the interest reported in Box 3 from the amount of reportable income on this form.

However, the IRS does not require taxpayers to report forgiven debt if the tax payer was insolvent at the time the creditor forgave the debt. Being insolvent means that the amount of a debtor’s debts are greater than his/her assets (how much money and property the debtor owns). However, the IRS adds that “you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent.”[8]

For example, if a taxpayer is $10,000 in debt and owns $3,000 in assets, he/she cannot exclude more than $7,000 of forgiven debt from his/her income tax. Any forgiven debt over $7,000 that year must be reported as taxable income.

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Obama Mortgage Relief Fund

Have you lost your job just recently? Knocking your heads off on where to get cash? Here is the answer: federal grants. Many Americans who are wallowing in debt problems are pinning their hopes on the government’s stimulus program. This program includes a scheme to award cash grants to individuals which they can use to repay debts. What specifically is a federal grant? In 2008, as soon as the world financial crisis came like a tsunami in the United States, knocking off big businesses and putting many Americans on the heels of bankruptcy, the government has been trying out ways to cushion the impact of the crisis. When President Barack Obama took over, he immediately asked congress to allocate billions of dollars for his stimulus package. One of the highlights of this congressional act is the passage of a bailout scheme for people buried in mortgage and credit card debt. Funding assistance was allowed to be given to citizens who ask for the grant.

The solution proved to be effective as many people began to recover their businesses and income started to flow. Low-income families who could not afford to pay for their mortgage were saved from being kicked out with the government’s mortgage assistance program. The debt consolidation program was also obtained by many middle income citizens who are neck-deep in credit card debt. The package has not only saved them from litigation but has also liberated them out of sleepless nights. For many, it is like being freed from chains of debt repayment and walking away in high spirits.

The nearest public library or any government office can be approached anytime during office hours to get more information about the debt relief grant. There is absolutely no need for stringent paper requirement. All you need to present is something that will certify you as 18 years old and above and an American citizen. While processing may take some days or weeks, it will be all worth the wait when you finally take hold of your check. The amount may range, depending on how much you need, but the grant may reach up to $10,000. This is all given for free by the government, no repayments, and no collateral.

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Article Source: ArticlesBase.com - Government Debt Relief Grants Are Available to Help Those in Need

McCain, Obama Differ on Housing Crisis

Mortgage Relief Legislation

Question: Why do DEMOCRATS TRADE OUR TROOPS IN IRAQ FOR DROUGHT RELIEF AND DOMESTIC SPENDING INCREASES?

Why do DEMOCRATS TRADE OUR TROOPS IN IRAQ FOR DROUGHT RELIEF AND DOMESTIC SPENDING INCREASES

In a complicated deal over the war funds, Democrats will include about $11 billion more in domestic spending than Bush has requested, emergency drought relief for the Southeast and legislation to address the subprime mortgage crisis, Hoyer told a meeting of the Washington Post editorial board.

http://www.washingtonpost.com/wp-dyn/content/article/2007/12/07/AR2007120702550.html?hpid=topnews

Answer: because that is what SHOULD be done.

Congressman Sherman discusses mortgage relief legislation on CNBC business panel