Archive for the ‘Mortgage Forgiveness Debt Relief Act’ Category

Mortgage Forgiveness Debt Relief Act Extension

With the foreclosure rate steadily increasing across Minnesota, up 15% in April, and also rising in Crow Wing County there are now more programs in place to help. Your home is your most prized possession and if you are one of the many homeowners in Minnesota facing foreclosure you should know how the foreclosure process works and where to turn for help. Counselor's are free and confidential and can help you find a resolution. It highly recommended that you use a government sanctioned agency. Talk to your foreclosure counselor and lender about your situation. The lender will want to work with you. Banks often lose money in the foreclosure process so it is often in their best interest to help you figure out a workout plan for you. In Minnesota, homeowners usually will have six months to stay in the home which is followed by a sheriffs sale.

If you are facing foreclosure here are several tips:

1. When talking to financial services or lenders ask to be transferred to the loss mitigation department and document all calls and what was talked about. Get their extension so you can call them direct next time.

2. Whatever it is you talk about be completely honest. Tell the lender you want to work with them to keep your current mortgage

3. Check with your lender, see if they have any assistance programs for homeowners facing foreclosure.

4. If a resolution is found, request the document be sent to you, don't agree to anything until you have the hard copy.

5. Don't over extend yourself. Always make sure you don't enter into an agreement you will not be able to afford.

Check with your lender and a private tax preparer, see if you are eligible for mortgage debt forgiveness. In 2007, Congress changed the mortgage debt forgiveness laws. If you owe a debt to someone else and they forgive that debt, the canceled amount may be taxable.The mortgage debt forgiveness act does not include income from the removal of debt on their principal residence. Mortgage debt forgiven in connection with a foreclosure and debt reduced through mortgage restructuring qualifies for the relief.

Signs to watch out for:

1. Any cold calls. Especially those offering solutions and easy fixes.

2. Having to give out your social security number.

3. Having to pay for counseling.

4. Anything that sounds too good to be true.

This is in no way meant to serve as legal advice. If you are facing foreclosure please contact a Minnesota foreclosure counselor or the Lutheran Social Services. They can help you create a budget, payment plans, even help coordinate your transition after a foreclosure. LSS have certified counselors and provide many services useful to anyone who could use help getting their finances in order.

Minnesota Foreclosure Guide

Real Estate Blog

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Source - Are You Facing Foreclosure? Minnesota Foreclosure Help

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Mortgage Relief Law Center

Loan modification companies without any experience other than the ability to market to distressed homeowners are coming out of the wood work in masses. Taking illegal upfront fees and offering money back guarantees that don't exist. Times are tough for ex- mortgage companies as well and they will say or do almost anything to get your money. They seek out troubled homeowners at the same time they are trying to find someone to process the loan mod file cheap. They offer money back guarantees (minus $1,000 or so for processing) and typically offer the client no more than a sad story after 90 days and the loss of your home to foreclosure. Calling themselves Loan Modification Experts or Specialists, they are like Cockroaches chasing down their next meal and they are hard to keep up with and even more hard to get rid of. The Attorney General office in most states is aware of the problem but is understaffed and has a difficulties being proactive in their efforts to stop these scam artists. Don't get me wrong, not all of them are thieves. Some mean well, they just need to make money and can't collect unemployment benefits. We get calls all the time from mortgage companies that are or are going to start doing loan modifications and want someone to process their files for cheap. They want to make representations to homeowners of low interest rates, principal reductions, and unreasonable settlements based of findings in forensic loan audits and then pass the buck to a loan mod processing company that will take your information, say a prayer and mail it off to the bank. Sad, but true. They have absolutely no clue what they are doing all they know is they can't do loans anymore and loan mod clients are sitting ducks. These guys come up with cute names, websites, radio commercials, mailers etc.....  Even cold calling off title data as a government sponsored foreclosure relief agency!

Should you decide a loan modification is a viable option for you then hire an Attorney that can offer legal representation and has the required experience to negotiate with your lender. Do not fall victim to an "attorney backed" or a "attorney based" loan modification company. This is very important as they only offer smoke and mirrors. The attorney is not your attorney and only gets a very small fee so the company can say they have an attorney. If you see a company that mentions Law, Legal, Attorney or anything of this nature in their name this is highly illegal unless they are a Law Office with real Attorneys that actually represent you. You should never pay more than $5,000 to get your loan modified or stop a foreclosure sale. Attorneys are not supposed to be cheap, they are supposed to protect and defend you, and a good Attorney in this situation is priceless. The Feldman Law center in Mission Viejo, California has a proven track record helping homeowners save their homes from foreclosure. They offer in house forensic loan audits to support predatory lending and mortgage fraud cases when required as well. In cases of hardships they have the ability to drastically reduce interest rates, principal balances and completely change the terms of a mortgage. There is a team of 50 full time Attorneys, paralegals, negotiators and legal assistants that work directly under Mr. Feldman, Esq. saving homes with real loan modifications. When you retain their services you are kept up to date on a weekly basis. There are other Attorneys around the country as well, but know one with the type of operation Mr. Feldman has. His Law Firm is filled with consumer advocates that share Mr. Feldman's vision of providing struggling homeowner's real solutions and giving them their moneys worth or giving it back. You can find Mr. Feldman at www.feldmanlawcenter.com or in the office Monday - Friday 7:00 AM to 7:00 PM PST.

About the Author:

The Feldman Law Center is owned and operated by Steven C. Feldman, attorney at law. Mr. Feldman has been a member of the California State Bar since 1983 and is well versed in federal
loan modification
law.

Source - Loan Modification - Loan Modification Companies- What You Need To Know!

loan modificaiton testimonial feldman law center

Mortgage Relief Qualifications

Home owners are sometimes confronted with mortgage loan repayment problems. It is not uncommon to find  repayment plans failing to materialize, forcing one to look for alternatives to meet obligation. Fortunately, there are so many debt relief programs that have been put up by various lenders to help you meet those financial obligations towards creditors.

To determine whether you qualify for mortgage debt consolidation, you can make use of the consolidation calculator which can help you make approximate calculations. The procedure that you will require to follow is available online. Once you know your qualification status, you then approach lending firms, who will top up on the mortgage balance that you have not cleared.

It is with this money that one clears the remaining mortgage balance and is left to repay the second loan at lower interest rates. Some of the loans that qualify as home mortgage debt consolidation loans include home equity loans and refinance loans. In most cases, they are offered to borrowers who are seen to be consistent in their repayment schedules.

Most of the consolidation loans are calculated based on the value of your home. It also largely depends on your income. Many lenders want to avoid the situation where a borrower may be forced to default payment due to some let down in financial flows. The lender also has to keep a good track record of the borrower and borrowers who have a good financial history with them are better placed to borrow. This tells you that as you look for consolidation loans, it is best to consult your regular creditor.

About the Author:

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Manage Loans, Read More Of His Articles Here MORTGAGE DEBT CONSOLIDATION If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

Source - Home Mortgage Debt Consolidation

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