There was a lot of speculation going into the new year regarding whether or not the Mortgage Debt Relief Act of 2007 would be extended through 2013. The Mortgage Debt Relief Act protects distressed homeowners from having to pay taxes on the difference between the amount owed on the mortgage and the price of the short sale. For example, if a homeowner had a mortgage of $200,000, and the bank agreed to a short sale of $100,000, the IRS would assess the $100,000 difference from the distressed homeowner. Forgiven debt is normally considered taxable income, but under the Mortgage Debt Relief Act of 2007, distressed owners do not have to consider their discharged debt as income (for their primary residence). Fortunately for these homeowners, the Congress came together to extend the legislation through 2013.
According to industry reports released earlier this quarter, Broward short sales have increased by over 60%. One of the reasons banks are approving an increased number of short sales is due to the $25 billion mortgage settlement reached earlier this year between mortgage lenders and the government. As a result of negligent conduct and poor business practices by many leading mortgage lenders in handling mortgage foreclosures (robo -signing) both state and federal governments now require lenders to accommodate and ease the process for homeowners in avoiding foreclosure. Lenders are now required to increase their approval of mechanisms to abate the foreclosure crisis. Short sales and loan modifications are two tools homeowners who are in pre-foreclosure can use to avoid going into foreclosure.
Banks are taking longer and longer to foreclose on borrowers in default. Take a look at this very informative article from The Wall Street Journal.
My website sales rep came to the office last week and asked me if I wanted to pay for blogging services, to pay his company to post information on my website for me. I didn't think that they could or should represent me - that the posts should be genuine - that they should be my words so here it goes. I'm not going to use this Blog to post information about bankruptcy, you can get that from my website and truthfully, it would just be very boring. I think this Blog is best used to share my stories. To talk about situations I encounter in my everyday work life. The truth is often unbelievable, you can't make this stuff up. Of course I will never share names or personal details. I will absolutely protect the confidentiality of my clients but the stories are often better than anything you find on TV or in the movies so I thought I would start writing about what happens here in this office on a regular, irregular basis. Stay tuned!
I was interviewed on Monday October 11, 2010 by Melanie Alnwick from Fox 5 News. Please click on the link to see the story.
"I speak, miss, of twenty years ago. He married-an English lady-and I was one of the trustees. His affairs, like the affairs of many other French gentlemen and French families, were entirely in hands. In a similar way I am, or I have been, trustee of one kind or other for scores of our customers. These are mere business relations, miss; there is no friendship in them, no particular interest, nothing like sentiment. I have passed from one to another, in the course of my business life, just as I pass from one of our customers to another in the course of my business day; in short, I have no feelings; I am a mere machine. To go on-"