Tag Archives: Relief

Property owners Consumer Center Fears Millions of Underwater US Property owners Could Owe New IRS Taxes If Obama and Congress Fail To Extend Mortgage Forgiveness Debt Relief Act

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(PRWEB) December 20, 2012

The Homeowners Consumer Center is urging President Obama, and the US Congress to immediately extend the Mortgage Forgiveness Debt Relief Act now, ahead of time to do so comes, and goes. Without having an extension of this law over ten million existing US homeowners, who owe far more on their house than it is worth could get hit with a enormous IRS tax bill, should they do any variety of loan modification, a deed in lieu of foreclosure, a short sale, or anything else that entails a mortgage principal reduction from their mortgage lender in 2013. The Home owners Consumer Center says, “We worry most US property owners are not conscious of the truth that without having an extension of the Mortgage Forgiveness Debt Relief Act by President Obama, and the US Congress, any sort of principal reduction by a bank involving a loan modification, a brief sale, a deed in lieu of foreclosure, or foreclosure will be treated as ordinary earnings by the US IRS. Just as an example if you live in Las Vegas, Los Angeles, Oakland, Miami, Chicago, Cincinnati, Phoenix, Saint Louis, Atlanta, Minneapolis, Memphis, Boston, or any other US city, and town, and your lender, or mortgage loan servicing firm agrees to a mortgage principal reduction as part of a loan modification, or a short sale-the mortgage principal reduction will be treated by the IRS as ordinary revenue by the US IRS. Is this actually what President Obama meant when he mentioned Forward for the duration of his 2012 presidential campaign?” http://HomeownersConsumerCenter.Com

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According to Bloomberg News on November 29th 2012, “The Mortgage Debt Relief Act of 2007 enables borrowers to avoid paying revenue taxes on the amount of principal thats forgiven as part of a loan modification or in the course of a brief sale in which they sell their houses for significantly less than they owe. If the measure expires, home owners would have to count such debt reduction as money they earned.” http://HomeownersConsumerCenter.Com

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The Property owners Consumer Center believes casualties from President Obama, and the US Congress failing to extend the Mortgage Forgiveness Debt Relief Act will incorporate:&#13

The Homeowners Consumer Center says, “What happens if President Obama’s Tax the Rich presidential campaign theme backfires, and the US economy tanks since of elevated taxes on little enterprise owners, or farmers? We think unemployment goes up. We also feel upside down homeowners will be forced to stroll away from their homes in droves. How does a newly unemployed person spend his, or her principal reduction IRS tax bill, if they no longer are employed?” &#13
More US property foreclosures, and far more instability in the US housing markets. &#13
Thousands of real estate agents that specialize in short sales could suddenly be unemployed. What homeowner is going to do a short sale on their below water house if they get taxed on the principal reduction-as ordinary earnings? &#13
Mortgage lenders, banks, mortgage brokers, and law firms that specialize in loan modifications will also be joining the unemployment lines-what homeowner-who owes more on their residence than it is worth would want to do a loan modification, if the principal reduction is taxed as ordinary revenue?

The Property owners Consumer Center says, “What happens to the 22.eight% of all US homeowners, who are upside down on their house mortgage when they all of a sudden understand-if they never stroll away from their houses now-they may well get taxed on any sort of principal reduction in 2013, if they do a loan modification, a brief sale, a deed in lieu, or something involving a principal reduction from their bank? At this moment we are saying if the US Congress, and the Obama Administration do not extend the Mortgage Forgiveness Debt Relief Act-now-its not just rich men and women who could be facing a enormous tax improve in 2013, it could also be almost 25% of our nations homeowners.” http://HomeownersConsumerCenter.Com

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Mortgage Relief Act Extended for One particular More Year

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Waltham, MA (PRWEB) January 03, 2013

McGeough Lamacchia Realty reports that Congress passed a bill, The American Taxpayer Relief Act of 2012, as component of a deal to avert the so-called fiscal cliff. This legislation consists of extending the Mortgage Forgiveness Debt Relief Act via December 31, 2013. The law impacts property owners who are granted principal forgiveness on their loan, due to a short sale, a deed-in-lieu of foreclosure, or have lost their property to foreclosure.

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Below the federal tax code, all varieties of forgiven debt are treated as earnings, topic to normal taxes. Simply because of the Mortgage Forgiveness Debt Relief Act, homeowners who get their mortgage debt forgiven through either a short sale or loan modification wont be taxed on the amount forgiven up to $ 2 million.

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The amount of forgiven debt is the difference amongst the amount a homeowner owes on his or her mortgage and the amount the mortgage company receives after closing. McGeough Lamacchia Realty has negotiated more than $ 100 Million in total mortgage debt forgiveness in 2012.

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This law was set to expire December 31, 2012. If it hadnt been extended, any forgiven amount of debt would be deemed taxable revenue. John McGeough and Anthony Lamacchia, co-brokers and owners of McGeough Lamacchia Realty, say this would be devastating for property owners who are already experiencing monetary hardship.

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The Mortgage Relief Act is much more critical than ever, says John McGeough. Brief sales are becoming a lot more well-known since they generally have a smaller sized impact on a borrowers credit and they let a borrower to purchase a home again sooner than if they were foreclosed on.

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A homeowner who does a brief sale will not have the cash to spend taxes on the forgiven debt, says Anthony Lamacchia, producing the extension of this Act essential for homeowners searching for a quick sale as a way to avoid foreclosure.

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The extension will also influence homeowners who arent struggling to pay their mortgage. The typical loan to value ratios the amount of mortgage debt in relation to the houses industry value–have gone up across the nation, to about 94.three%. If these homeowner want to sell their residences most likely they will need to do a brief sale.

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It must not have taken so long for this Act to get extended, says Anthony Lamacchia, and it must have been extended beyond 2013 due to the fact there will be principal reductions and short sales for much more than a single year.

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We hope it doesnt take until the finish of the year to extend it further, says John McGeough.

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For Far more Detailed details on this visit the New England Quick Sale Weblog.

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About McGeough Lamacchia

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McGeough Lamacchia Realty Team is the quantity one Genuine Estate Group in Massachusetts and named one of the fastest developing True Estate Businesses in the U.S in 2012 by Inc. Magazine. They are a full service true estate agency serving house purchasers and sellers Massachusetts and New Hampshire.

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http://www.shortsalene.com

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Passage of Mortgage Debt Relief Act to Encourage Quick Sales vs. Foreclosures for Residence Owners in 2013 East Bay Property Owners Aim to Take Benefit Ahead of Law Expires

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Oakland, Hayward, Fremont. California (PRWEB) January 10, 2013

According to the Internal Revenue Service, the Mortgage Debt Relief Act, which originally passed in 2007, enables a borrower who either obtained a loan modification or opted for a brief sale (a sale of a property for significantly less than whats owed) to be exempt from realizing the forgiven amount as taxable income.

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The extension of this law genuinely was a needed part of the actual estate recovery we are now seeing all over the nation. Whether selling a residence or if a single is fortunate enough to receive an cost-effective loan modification, the law served as a counter weight to the foreclosure epidemic we have witnessed considering that 2007. Stated Charles Lassey Founder of ACL Actual Estate and Property Management, a Northern California Complete Service Brokerage Firm that specializes in Short Sales and Property Management.

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In that study, it was located that the new extension almost certainly would not contribute to a new onslaught of delinquent mortgages in the initial half of 2013.

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Numerous opponents who took concern to the law pointed out that it will reward folks who strategically stopped paying their mortgages in hope for help from their banks and or servicers. ACLRealEstate.com disagrees when it comes to loan modifications, since several of the applications that exist right now apply only to loans that had been originated from 2010 and prior, with the bulk of assistance going to borrowers whose loans originated from 2008 and prior.

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Encouraging home owners to complete a quick sale is exactly where the industry appear to be headed. For the next 24- 36 months, a short sale will be the conventional sales in several locations of the nation. This law tends to make offers homeowner one further incentive not to go through foreclosure.

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Complimentary Report released to help Distressed Property owners realize the Mortgage Forgiveness Debt Relief Act extension

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Baltimore, Maryland (PRWEB) March 19, 2013

On January 1, 2013, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act as portion of tax bill H.R. 8, the bill addressing the fiscal cliff. Originally passed in 2007, this act exempts struggling property owners from paying taxes on debt forgiven in a quick sale, foreclosure, or loan modification.

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The bill extends the act through December 31, 2013, allowing underwater home owners to after once more pursue alternatives to foreclosure, such as brief sales or loan modifications, with no the worry of owing thousands and taxes.

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Sadly, some six years into the housing collapse it is reported that 7 out of ten house owners that locate themselves facing foreclosure finish up losing their house to foreclosure without ever realizing that other choices had been offered to them.

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For distressed property owners, the extension of the Mortgage Debt Relief Act was amazing news. Prior to this act, property owners would negotiate a loan modification or avoid foreclosure via a brief sale only to uncover they owed an equally unmanageable tax debt afterwards, The largest difficulty I have seen is that individuals don’t totally understand the benefits of this system and hopefully my complimentary report will answer some of their concerns says Dan McDevitt, Certified Distressed House Expert with Remax Very first Selection in Baltimore, MD

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As a Certified Distressed Home Specialist (CDPE), Dan McDevitt, Baltimore Brief Sale Realtor is specially trained to aid property owners who discover themselves facing foreclosure. Im committed to helping home owners who are struggling, McDevitt stated. As well often, property owners facing foreclosure think there is nothing they can do, but there is.

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In fact, the choices offered to home owners are far better than ever. Lenders comprehend how a lot foreclosures expense, and increasingly favor brief sales and other options more than letting a home go to foreclosure. Lenders are more prepared than ever to operate with property owners, stated McDevitt

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Dan McDevitt has created this complimentary report with much more info on the Mortgage Forgiveness Debt Relief Act and the choices accessible to property owners facing foreclosure. a copy of this report is also accessible from His site, http://www.BaltimoreAreaShortSales.com.

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About&#13

Dan McDevitt is a Realtor affiliated with Remax Initial Selection in Baltimore, MD that specializes in functioning with distressed property owners to assist them in discovering a dignified remedy to foreclosure. Given that 2006 when the housing market began its eventual collapse his team has helped more than 200 households in the Baltimore region stay away from the devastating effects of foreclosure.

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4 Ideas to Keep away from Loan Modification Scams Presented by Loan Relief Solutions

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Lake Forest, CA (PRWEB) Could four, 2009

Right now, loan modifications are increasing increasingly well-liked as a lot more property owners fall behind on their month-to-month mortgage payments. This increased recognition brings a growing quantity of scams by firms offering their loan modification assistance for a sizeable fee. Jason Lines, spokesman for Loan Relief Solutions, publisher of the do it yourself Loan Modification Guide and DYOLoanModification.com, nowadays supplied advice to aid home owners stay away from loan modification frauds.

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A loan modification is the approach by which a lender agrees to modify the current terms of a mortgage to a lot more favorable terms, such as a loan term extension, a modification of the monthly payment amounts, or a revised interest price. It is not a refinance, but rather, a modification of an current loan.

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According to current news reports*, the FBI is at the moment investigating roughly two,one hundred mortgage fraud instances, up 400 % from 5 years ago. To assist you stay away from becoming a victim of mortgage fraud, Lines gives the following suggestions.

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Tip #1: There are no loan modification guarantees.&#13

“Each and every borrower’s economic circumstance is unique and each and every lender has its personal loan modification criteria, generating it impossible for any firm to assure a loan modification,” says Lines. Profitable loan modifications include understanding what paperwork to prepare and how to prepare it, understanding your credit and how to enhance it, and presenting your case in terms that resonate with your lender. Even then, there is a chance – not a guarantee – that your loan will be modified.

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Tip #two: By no means spend a big quantity of income up front.&#13

Some loan modification firms ask anywhere from $ two,000 to $ five,000 in upfront costs – fees that might not get a effective loan modification. According to Lines, if you have $ 2,000 to $ five,000, you’re almost certainly better off paying your mortgage. Instead, he suggests employing a loan modification package to support you do your own loan modification, for a fraction of the price.

Watch Out for Debt Relief Grants, DestroyDebt.com Tells Customers

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Wood Dale, IL (PRWEB) September 17, 2010

Discovering reprieve from mounting debt is a pressing concern, so much so that some have fallen prey to specific debt help firms who promise substantial relief, for a value. DestroyDebt.com, an education resource and forum for shoppers seeking data about how to get out of debt, is directing buyers to trustworthy sources of info and solutions and warning consumers to watch out – the provide becoming presented could not be what it seems to be.

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A search on the web will yield an eye-catching array of prospective businesses that are eager to point you in the correct path when it comes to debt relief. Several net web sites function government grants that can be taken advantage of. The query is, are these companies taking advantage of you?

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Does the government really grant funds to taxpayers in order to assist them with their debts? How legit are these debt support companies?

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The truth is that government debt relief grants and help for debts can be found, but it takes some digging and it is seldom if ever for credit card debt. Any web site that pledges instant consolidated relief by means of one large payment directed to you through the government or state is likely offering a controversial but powerful debt consolidation plan identified as debt settlement.

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There are government web sites nevertheless that can give valuable advice if locating a grant for your debt difficulty is in fact your only option. Check it out for oneself. As a beginning point, go to the source,http://www.usa.gov, and search the keywords and phrases ‘debt relief.’ You will locate links on credit card settlement, information on unscrupulous advertisements promoting debt relief, and learn how to search for free of charge money and grants.

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Government grants are accessible for both men and women and businesses. The Small Business Administration offers many grants for very first time entrepreneurs and struggling enterprise owners. Scholarship grants are obtainable to students to assist with loans. Well being care expenditures from unexpected healthcare emergencies speedily pile up. Government grants can be identified by way of the Division of Well being and Human Services and private overall health grant foundations.

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Property foreclosures are regularly one particular of the biggest factors folks turn to outside debt assistance. Several banks are willing to operate directly with their buyers, and under the Housing Stimulus Strategy, the government has mandated lenders to collaborate with home owners so that mortgages can be refinanced under agreeable terms and loan modifications produced to avoid increasing foreclosures.

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Liabilities owed to the Internal Income Service also carry growing penalties and interest. Since of this, balances owed to the IRS can quickly turn into unmanageable.

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The topic of tax relief is monopolized by numerous firms that guarantee individual representation and pennies of the dollar. Sadly, a lot of of these so called tax accountants and attorneys give solutions to taxpayers that are created straight available by the IRS.

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In fact, there are no unique programs accessible to third celebration CPAs, lawyers or any person else that are not obtainable to a taxpayer directly. Before you pay any debt service handfuls of income under the pledge of a enormous cutback on your tax bill, speak to the IRS directly and speak to them about their Offer in Compromise program. Any outdoors agency that assures a single time tax settlements is only charging you for the exact same compromise program that taxpayers can submit themselves.

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