Upside Down Mortgage

Posts Tagged ‘foreclosure relief’

I have a 1 yr. lease on a fairly new home with 2 other people on the lease with me. We are in the 8th month now and we all have plans to end it after the year is up.

Last week, and just today, we received in the mail a notice titled "Notice of HUD Rights" from a company called National Foreclosure Relief based in NV (addressed to the landlord/homeowner). At first, I thought this was some type of solicitation and threw the first one away. It states that the notice is not an attempt to collect a debt but that the time to enter into a repayment plan is running out.

On the back is states:
"As of Jan. 19, 2001, the US. Department of Urban Development mandated that all borrowers who had loans governed by their loss mitigation guidelines be informed as to their rights to repayment programs."...

The Homeowners have other properties they manage/lease aside from working in separate professions. I am almost certain that if a foreclosure is of concern then they would know about it.

My question is that if there is a foreclosure, do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from 'legal experts' who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us?

Also, my question is do we have a right to know if there is a foreclosure, and do they have to give us a month notice or can they simply tell us to leave at any time? The agency would not tell me anything but instead tried to get me to go to a website and pay 29.95 to get information from 'legal experts' who could tell me what my options were. It all sounds like a gimmick to me. Can anyone clarify this for us? Thank you

Thanks in advance.

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What is The Mortgage Forgiveness Debt Relief Act of 2007?

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.