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You may owe federal income taxes in 2013 if you have a short sale, foreclosure

You may owe federal income taxes in 2013 if you have a short sale, foreclosure


I wonder why this hasn’t made any noise, but whatever you do make sure you do what’s right for you.


Sun-Sentinel-

Now is the time to make the hard decision: Are you going to walk away from your underwater home?

Uncle Sam is still giving homeowners until Dec. 31 to go through a short sale or foreclosure without tax consequences — as long as the lender officially releases the debt.

But on Jan. 1, 2013, the rules change: The amount a lender forgives, ether in a short sale or foreclosure, on a primary residence will be taxable on federal income taxes.

So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 in they’re in the 25 percent bracket; $7,500 if in the 15 percent tax section.

Homeowners would be on the hook even if the house sold but the bank had not formally forgiven the loan in a letter: The banks must officially sign off in writing before Dec. 31.

[SUN-SENTINEL]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings?

What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings?


Lets revisit this article from last October… After the ruling yesterday, I bet many Title Company executives are ____________________ fill in the blank…

After Foreclosure, a Focus on Title Insurance


By RON LIEBER
Published: October 8, 2010

When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.

This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gauntlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.

Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.

But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.

What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings? Could they somehow win back the rights to their homes, free and clear of any mortgage? But they may not be able to simply move back into their home at that point. Banks, after all, have turned around and sold some of those foreclosed homes to nice young families reaching out for a bit of the American dream. Would they simply be put out on the street? And then what?

The answer to that last question may depend on whether those new homeowners have title insurance, because people who buy a home without a mortgage can choose to go without a policy.

Then there is a glimpse behind the scenes …

[ipaper docId=46466367 access_key=key-448g7r9wonwz1j4ufuq height=600 width=600 /]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (2)

After Foreclosure, a Focus on Title Insurance

After Foreclosure, a Focus on Title Insurance



By RON LIEBER
Published: October 8, 2010

When home buyers and people refinancing their mortgages first see the itemized estimate for all the closing costs and fees, the largest number is often for title insurance.

This moment is often profoundly irritating, mysterious and rushed — just like so much of the home-buying process. Lenders require buyers to have title insurance, but buyers are often not sure who picked the insurance company. And the buyers are so exhausted by the gauntlet they’ve already run that they’re not interested in spending any time learning more about the policies and shopping around for a better one.

Besides, does anyone actually know people who have had to collect on title insurance? It ultimately feels like a tax — an extortionate one at that — and not a protective measure.

But all of the sudden, the importance of title insurance is becoming crystal-clear. In recent weeks, big lenders like GMAC Mortgage, JPMorgan Chase and Bank of America have halted many or all of their foreclosure proceedings in the wake of allegations of sloppiness, shortcuts or worse. And a potential nightmare situation has emerged that has spooked not only homeowners but lawyers, title insurance companies and their investors.

What would happen if scores of people who had lost their homes to foreclosure somehow persuaded a judge to overturn the proceedings? Could they somehow win back the rights to their homes, free and clear of any mortgage? But they may not be able to simply move back into their home at that point. Banks, after all, have turned around and sold some of those foreclosed homes to nice young families reaching out for a bit of the American dream. Would they simply be put out on the street? And then what?

The answer to that last question may depend on whether those new homeowners have title insurance, because people who buy a home without a mortgage can choose to go without a policy.

Title insurance covers you in case people turn up months or years after you buy your home saying that they, in fact, are the rightful owners of the house or the land, or at least had a stake in the transaction. (The insurance may cover you in other instances as well, relating to easements and other matters, but we’ll leave those aside for now.)

Continue reading…NEW YORK TIMES

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© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, foreclosure, foreclosure fraud, foreclosures, Old Republic Title, STOP FORECLOSURE FRAUD, title company, Title insuranceComments (2)

FORECLOSURE DEFENSE ATTORNEYS…TIME TO TAKE OFF THE GLOVES!!!

FORECLOSURE DEFENSE ATTORNEYS…TIME TO TAKE OFF THE GLOVES!!!


I have to apologize to Mr. Martinez as I normally do not post full content unless it is one of those post that you must read without being navigated to another place or distracted. Please visit the link below as it is a great source from an insider stand point.

FORECLOSURE DEFENSE ATTORNEYS…TIME TO TAKE OFF THE GLOVES!!!

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Ok I get it… ….Attorney’s are to hold themselves to a higher standard…professionalism…professional courtesy…courtroom edicate…yada yada yada!  I get it I really do!  But my fellow legal advocates…it really is time to take off the gloves.

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In hearing after hearing I’m seeing these defense attorneys walk in with the same timid attitude of sorts trying to be nice, trying to maintain their professionalism while across the table I’m seeing these foreclosure mill runners (I call them runners because they’re not even the attorney on the case just the runner appearing before the judge on behalf of the foreclosure mill) being extremely flagrant, arrogant and flat-out bully like to a large degree.  And what I’ve noticed is that the moment they get tripped up by the more aggressive defense lawyer, they tend to quickly tell the judge how they’re not the attorney assigned to the case and how they’re just present for the hearing and will have to check back or ask for a continuance or make the defense feel like they’ve won something by postponing the sale.  Amazing how on the fly these runners are making decisions for their clients about postponements without making a call.

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Quite frankly for those who know me personally I give you what you dish out.  If you act like a bully I’m going to treat you like a bully.  I personally don’t like these foreclosure mills and what they stand for on a moral and ethical front.  I believe that any attorney that can stomach putting families in masses in the street for money is morally challenged and any lawyer that’s willing to commit fraud upon the court doesn’t deserve my professional courtesy.  Defense attorneys need to stop treating these foreclosure mill attorneys as their equal brothers and sisters of the profession and start treating them like enemies of the state.  That may seem a bit harsh but for every homeowner that seeks our assistance does so with a passion unseen or felt by our profession.  We need to harvest that same passion, translate it into legal argument and bring it right into the courtroom.  We cannot allow for families to lose their home as a matter of course through runners!  RUNNERS!!! Are you kidding me!  We should be kicking their ass’s right out the courtroom down out to the street and we aren’t.  We are giving them professional courtesy.

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I think it’s time to get aggressive and outright scary in these courtrooms.  Why should a judge take us seriously when we’re not bringing the passion and seriousness of the issues to the forefront?  I walk into courtrooms and see judges laughing, I see lawyers talking while waiting their turn and a hearing is going on.  I see judges making jokes and then saying your motion to dismiss is denied.  I am nothing short of AMAZED at how unimportant kicking a family out of their home is.  Let me tell you that it’s one thing to see an adult client in front of you but it is something completely different to visit their home and see a child 4 or 5 holding a toy or a 12-year-old ask you if you’re going to save his family.  I recently traveled to New York on another case and let me tell you that in these judges courtroom, intimidation is not the word.  NO ONE is talking in the courtroom.  These judges in New York are not playing and neither are the defense attorneys.  I see great passion and argument and I see judges looking squarely at the merits of the case.  So why is this not happening in Florida courts?

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When I see my legal associates like Matt Weidner put up a post of frustration and fear that we are losing the battle I get angry and begin calling members of my legal team to have a strategy session and figure out new ways to take back the momentum.  Defense attorneys need to silence the courtroom with their passion and sound legal arguments.  They need to create the platform in which judges and other defense attorneys stay quiet to learn.  We need to own the room when we’re in it and speaking and we need to spank these little foreclosure mill runners and make them run back to daddy Stern or daddy Watson.  Walk into court every time knowing they’ve committed fraud.  Stop being so scared to say it and use every other word you know to describe it.  Say it loud…FRAUD FRAUD FRAUD!!!  Move for sanctions!  They’re crooks…treat them like it!  Stop treating them like your equal, stop giving them professional courtesy and start treating them like they deserve to be treated!

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TIME TO TAKE OFF THE GLOVES!!!

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Source: DISCOVERY TACTICS

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© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in assignment of mortgage, chain in title, conflict of interest, CONTROL FRAUD, corruption, foreclosure, foreclosure fraud, foreclosure mills, foreclosures, forgery, MERS, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., note, robo signers, servicersComments (5)

Don’t Blame the Dream of Home Ownership

Don’t Blame the Dream of Home Ownership


Robert Kuttner

Robert Kuttner

Co-founder and co-editor of The American Prospect

Posted: June 13, 2010 06:52 PM

Here is a fable that is making the rounds. It is a collection of half-truths and outright lies:

The financial meltdown was the result of too many people pursuing the American Dream of home ownership. People who couldn’t really afford to be homeowners became speculators. Government added to the damage with cheap mortgages, misguided laws such as the Community Reinvestment Act, and overgrown government-sponsored agencies like Fannie Mae and Freddie Mac.

This stuff is a staple of rightwing talk shows. In a moment, I will rebut each element of this storyline, but first I want to single out a wildly misleading piece by the New York Times financial columnist Joe Nocera. The piece, which ran in Saturday’s business section, was titled “Wake-Up Time for a Dream.”

The dream — surprise — is home ownership. It is depressing that a rightwing theme has invaded the mainstream Times.

Nocera writes, “The financial crisis might well have been avoided if we as a culture hadn’t invested so much political and psychological capital in the idea of owning a home. After all, the subprime mortgage business’s supposed raison d’etre was making homeownership possible for people who lacked the means — or the credit scores — to get a traditional mortgage.”

Now this is just malarkey. And the Nocera piece is worth reading in its entirety to appreciate just how an influential financial columnist can get a critically important story so utterly wrong.

For starters, the homeownership rate was already 64 percent in the mid 1960s. It peaked at about 69 percent just before the bubble burst — but was nearly 68 percent in 2001 before subprime lending took off. Back in the 19th century, thanks to the Homestead Acts of the Lincoln era, homeownership (mainly family farms) was well over 70 percent in much of the west.

Ordinary working people can become homeowners and accumulate property wealth when two elements are present. Government programs have to be competently run and prevent private-industry sharks from abusing them. And working people need a degree of financial predictability in their job security.

In the period between, Franklin Roosevelt and LBJ, both factors prevailed. The Federal National Mortgage Association, later privatized as Fannie Mae, was part of the government. If mortgages met its standards, FNMA bought them from local banks and replenished bank working capital. Just as importantly, wages of working people steadily rose, so that more and more ordinary Americans could afford mortgage payments. Not surprisingly, homeownership rates rose. After Congress passed fair housing legislation in 1968, so that minorities could get a fair shot, black homeownership took off, too.

But beginning in the 1970s, wages stopped increasing with productivity growth. And the financial sharks got hold of programs intended to promote homeownership.

A newly privatized FNMA increasingly thought more about using its implicit government guarantee to increase market share and enrich its executives and shareholders. Not until Bush II, however, in 2004 and 2005 just before the housing collapse, was Fannie directed by the political masters in the White House to lower its standards and purchase pools of dubious mortgages so that Bush’s “Ownership Society” could claim credit for increasing homeownership rates.

Fannie Mae, a corrupted agency, has become a handy all purpose scapegoat. The lack of a provision in the financial reform legislation to resolve the mess at Fannie has become the main alibi that Republican senators give for voting against the whole reform package.

Nocera contends that the subprime industry’s “raison d’etre” was to promote homeownership “for people who lacked the means — or the credit scores — to get a traditional mortgage.” Sorry, Joe. The industry’s reason for being was so that financial wise guys could make a bundle at the expense of suckers. Low income prospective homeowners were merely useful props. They were the poster children, but not the real purpose.

(In 1994, the same Nocera was celebrating prosperity-for-all in a wildly over-optimistic book titled “A Piece of the Action: How the Middle Class Joined the Moneyed Class.” If his latest debunking is Nocera’s way of doing penance for his own earlier misplaced euphoria, it is just not helpful.)

The pity is that carefully run government programs, from the Homestead Acts to Neighborhood Housing Services, to the good work of community development financial institutions such as Chicago’s ShoreBank, have indeed increased the rate of homeownership among working people, and have done so by avoiding bait-and-switch products like subprime loans, not promoting them. The culprit is not the dream of owning your own home, but the utter cynicism of the financial sharks who took advantage of people innocently pursuing the dream.

Large numbers of subprime loans were in fact marketed to elderly people who had low mortgage debts, who could not live on fixed incomes and who needed to refinance their homes to take out equity. This was not about promoting homeownership but destroying it. Many of these victims are now losing their homes. The stripping of home equity is partly a story of a collapsing pension system in the face of rising costs for America’s seniors.

The 1977 Community Reinvestment Act, which encouraged banks to keep credit flowing to less affluent neighborhoods “consistent with sound lending standards” is not part of this fiasco at all. Had CRA been enforced, subprime loans that waived underwriting standards would have been illegal. Most of the mortgage brokers who retailed subprime loans were not even covered by CRA.

It’s certainly true (and no serious person claims otherwise) that 100 percent of Americans will never own their own homes. Some people are too transient or just too poor. Some would prefer to rent. But, maddeningly, one element of the story that the debunkers of the American Dream invariably leave out is the near-collapse of programs for affordable rental housing. Among moderate income Americans who rent, the fraction of income spent on housing rose steadily for three decades.

Ironically, many low income people turned to homeownership as a last resort because they couldn’t find an affordable rental — and the same Bush Administration that gutted subsidies for affordable rental housing refused to enforce laws on the books specifying standards for responsible lending to aspiring homeowners.

A sound housing policy would combine assistance for homeownership with affordable rental housing. A homeownership rate of 70 percent, which is common in several affluent European nations, is perfectly reasonable — if our political system keeps sharks like the subprime gang from wrecking the system and agencies such as FNMA from being corrupted.

Fannie Mae, which over-reached and went broke as a private company with a government guarantee, is now a ward of the federal government. It should be restored to its original form under Roosevelt, as a public corporation with high principles and high standards.

In the aftermath of the subprime collapse, many hard working lower income people, including a great many African Americans, have seen their dreams wiped out. The home ownership rate in black communities, which were targeted for subprime loans, is in free fall. Brandeis University’s Institute on Assets and Social Policy reports a devastating increase in the black-white wealth gap.

The same New York Times recently published a fine piece by reporter Michael Powell on what is happening to the black middle class in Memphis, “Blacks in Memphis Lose Decades of Economic Gains.”

The same story could be told about hundreds of predominantly African American neighborhoods.

The villain of the piece is the mortgage meltdown coupled with rising unemployment rates that are the collateral damage of the same financial collapse. The villain is not moderate income homeowners.

These people paid their mortgages on time, and there was nothing wrong with their dream. What was wrong was the failure of their government to keep the private financial industry from stealing the dream.

Robert Kuttner’s new book is A Presidency in Peril. He is co-editor of The American Prospect and a senior fellow at Demos.

Source: Huffington Post


© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in foreclosure, foreclosure fraud, foreclosuresComments (0)

Mortgage holders sue bank in CLASS ACTION:

Mortgage holders sue bank in CLASS ACTION:


From: b.daviesmd6605

BY STAFF,  CITY NEWS SERVICE OCLNN.com
Wednesday, May 19, 2010

SANTA ANA – Distressed homeowners packed an appellate court hearing Tuesday as their attorney tried to persuade justices a 2008 California law should force banks to work harder to ease the terms of their mortgages.

Attorney Moses S. Hall argued before the three appellate court justices in the Fourth District’s Santa Ana courtroom that banks holding the loans of his clients are not complying with a state law compelling them to try to negotiate modified mortgages.

Attorney Justin D. Balser, representing the RPI Quality Loan Service Corp., argued the homeowners cannot bring the class-action lawsuit to the courts and must rely on the California Attorney General’s Office to enforce the law.

The appellate court justices appeared skeptical of that claim and queried him why people could not sue to have their rights enforced in the courts.

Balser argued that letting residents try to enforce the law in the courts would lead to a “flood of lawsuits.”

“This is the only statute of its kind in the nation,” Balser said.

Attorney Melissa Coutts, who also represented RPI, said she was looking for the appellate justices to provide guidance on the law, which she argued was too vague.

“If there was a specific remedy (in the law), we wouldn’t be here,” Hall responded. “There’s nothing to help keep people in their homes.”

Terry and Mike Mabry filed their class-action lawsuit after they said their lenders refused to help them save their home in Corona.

The two had invested in 13 properties, which they rented, but when the economy soured their found themselves struggling to keep up with mortgage payments as renters left or demanded lower rent, they said. They ended up losing some of the properties and others were lost in short sales, they said.

However, when it looked like they wouldn’t be able to afford the adjustable rate mortgage on their own home they contacted their lender and were told they could not renegotiate the terms unless they missed at least two payments, Terry Mabry said. The couple had not missed any payments, she said.

“When we reached out for help we were hit with one wall after the other,” Terry Mabry said. “The bankers led us to believe they were working with us, but they weren’t. All we wanted was to be helped.”

Terry Mabry argues that all the state law was meant to do was give homeowners a chance to work with the lenders to save their houses and is not a guarantee.

“The law was meant to create a discussion, not to guarantee a solution,” Terry Mabry said. “But we never even got to the discussion point. That’s the most frustrating part.”

The Mabrys thought they were in serious negotiations until they returned home one day to find a notice to sell their home floating around the front lawn.

Carlos and Maria Hernandez of Lake Forest also thought they were going to save the home they bought 5 years ago after they were put in a home-loan modification program for eight months.

“The next thing we know we were given a notice that the house was already sold,” Carlos Hernandez said.

“We put all of our savings in that house,” Hernandez said. “We want to stay in it because it’s for the future of our kids.”

Carlos Hernandez had trouble making mortgage payments because he lost his job, but was able to keep up with the new payments, he said.

The Mabrys and Hernandezes remain in their homes as appellate court justices consider the lawsuit.

Read more: http://www.oclnn.com/orange-county/2010-05-19/business/mortgage-holders-sue-bank-in-class-action#ixzz0p84ayuW5

Posted in case, conspiracy, foreclosure, foreclosure fraud, foreclosure mills, forensic loan audit, Mortgage Foreclosure Fraud, mortgage modificationComments (0)


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