Posted by LynnNC on 11/10/07 11:41am
Msg #220626

Dubious Fees Hit Borrowers in Foreclosures

Excerpt from New York Times Article:

Dubious Fees Hit Borrowers in Foreclosures
http://www.nytimes.com/2007/11/06/business/06mortgage.html
As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers.

Reply by Charles_Ca on 11/10/07 11:45am
Msg #220627

Re: Dubious Fees Hit Borrowers in Foreclosures, I am very...

surprised that there is not much discussion regarding the IRS charging taxes for debt relief and boot. There are many who believe that they are getting out from under a huge load by selling short or other means only to find that the IRS considers the difference income.

Reply by pan/nd on 11/10/07 1:15pm
Msg #220631

Re: Dubious Fees Hit Borrowers in Foreclosures, I am very...

There's a bill in congress to change that.

Lord knows if it will pass.

Reply by Charles_Ca on 11/10/07 2:17pm
Msg #220639

IF it passes it has the potential to put us all out of work! n/m

Reply by Philip Johnson on 11/10/07 6:53pm
Msg #220662

Yes it is called the BIG BANKING BUSINESS GETS IT ALL bill.

You better pray to whatever religious honcho you believe in that this one fails.

Reply by Taj Signing Service on 11/11/07 3:27pm
Msg #220697

Re: Yes it is called the BIG BANKING BUSINESS GETS IT ALL bill.

What is this in reference to, does it involve signing agents all over? Or just a few states?

Reply by Charles_Ca on 11/11/07 6:54pm
Msg #220711

Check US House of Representatives HR 3915, but no one here

seems to care. If it passes as written, and it is out of committee and to be voted on by the House on Tuesday (I believe) it will make it unprofitable for Mortgage Brokers to originate loans by eliminating YSP. It is being pused by the Banking Industry who have wanted Mortgage Brokerous out of the way for a while. The Banks forced Mortgage Brokers to Disclose YSP while the same charge y the banks under a different name is allowed and doesn't even have to disclosed on the HUD. If YSP is eliminated then federally chartered banks will be the only ones to originate loans and the NSA will be history along with the Mortgage Broker. Laura Vestanen asked the question earlier this week I responded and no one else seemed to care.

Reply by Joan Bergstrom on 11/10/07 10:13pm
Msg #220670

I thought this "possible" tax relief bill" was only for homeowners who had never refinanced their property?
If Charles has the time perhaps he could clear this up?
Thanks

Reply by John_NorCal on 11/11/07 8:53am
Msg #220683

The bill Congress is considering is The Mortgage Forgiveness Debt Relief Bill of 2007. Proposed legislation would exclude from taxable income any debt forgiveness arising from the foreclosure of the taxpayer's personal residence. Also excluded in the proposal is debt forgiven in the write down of a personal residence mortgage by the lender. The debt forgiven must be acquisition indebtedness (refinance is OK to the extent of the exisiting acquisition indebtedness). The forgiveness of the equity debt (line of credit, hard money morgages, etc.) would still be taxable - unless used for substantial remodel of the personal residence.