Insolvency Not Bankruptcy Protects Debt Forgiveness
As we all know by now, when an individual owes a debt to another person or entity and the debt is forgiven, the canceled debt may be taxable. In the past, this general rule has applied to debt forgiveness related to a short sale. In 2007, Congress passed the Mortgage Debt Forgiveness Act (“MDFA”). The […]
How $8.5 Billion Foreclosure Settlement Affects Borrowers
Q&A: Status and Affect of Billion Dollar Settlement Many details of the $8.5 billion mortgage foreclosure settlement that federal banking regulators announced Monday have not been finalized yet. Here are some answers for borrowers. Q: How much money is in it? A: Ten banks and mortgage companies will pay $3.3 billion in cash to borrowers and […]
Mortgage Forgiveness Debt Relief Act and the Fiscal Cliff (VIDEO)
Many credit the Mortgage Forgiveness Debt Relief Act for much of the housing industry’s recovery in Arizona and throughout the country. Under the IRS Tax Code, debt cancellation or debt forgiveness, such as mortgage forgiveness in a short sale, is considered regular “income” for the taxpayer. Under the code a taxpayer would essentially have to pay taxes […]
HELOC Liability After Foreclosure or Short Sale
Groups preying on distressed homeowners have found another angle for exploiting those who have lost their home. As if there was not enough already for distressed homeowners to concern themselves over, now those who have been through foreclosure or a short sale with a HELOC need to be on the lookout for persons and companies […]
