Link to Mortgage Debt Forgiveness Act

Here is a link on the Internal Revenue Service page which explains the Mortgage Debt Forgiveness Act passed December, 2007. The lender that forgives a portion of the debt owed on a mortgage will issue a 1099 to the homeowner. For example if you owe 300,000 and the property is sold for $250,000, the lender will issue to a mortgage holder a 1099 for the difference, their loss. In this case it would be $50,000. http://www.irs.gov/individuals/article/0,,id=179414,00.html [Read more]

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Fannie Mae and Freddie Mac Sponsered Programs

This is a good sign that the banks are going to be communicating more with homeowners. Banks will be paid $800 per file to help homeowner’s who qualify rework some loans through loan modifications. The homeowner has to have decent income to qualify. The homeowner may be in pre-foreclosure stages. I believe one of the problems is the huge amount of files that the banks have on their hands. http://finance.yahoo.com/loans/article/106138/Relief-Starts-to-Trickle-to-Troubled-Homeowners

Hopefully, many homeowners may be able to contact the banks and many homeowners who have avoided communicating because they have given up may have a chance on saving their homes.

Technorati Tags: fannie mae, foreclosure relief, freddie mac

Miami To Buy Foreclosed Properties

Miami received more than any other jurisdiction grant money to buy, rehab and sell bank owned properties. This money is not for homeowners in pre-foreclosure or to prevent homeowners from losing their homes.  http://www.miamiherald.com/business/story/756991.html. They are buying bank owned properties, meaning the houses are vacant and has already gone thru the foreclosure process. The homeowners are long gone. I wonder how much of that money will be used to rehab since alot of these homes that are vacant have been trashed and vandalized.

Technorati Tags: City of Miami, Foreclosure