Can I Settle My Second Mortgage Without a Tax Liability? – Ellie

Question: Dear Steve, I have lived in my house for 16 years. Due to various circumstances, I have fallen behind on mortgage payments. My primary lender has filed for foreclosure as a result. My home is currently listed for sale. I have a smaller second mortgage with Chase that was a piggyback loan on a … Read more

Wells Fargo Turned Us Down for a Loan Modification

Question: Dear Steve, Our mortgage adjusted to an obscene payment without prior notice As soon as we saw the new payment we immediately applied for a loan modification but were eventually turned down (with a nice offer to help short sell). Long story short, we had a snag with our loan when we originally bought … Read more

Can Our Old Home Qualify for Tax Forgiveness if We Rented it? – Kevin

“Dear Jim, Bought a house in 2006 as my primary residence for 185k. In 2009 we receieved an appraisal of the property for 90k from the county. In the middle of 2009, I had to take another job which required a move across the US. With no time to try to sell the house, I … Read more

Tax Will be Due on Forgiven Mortgage Debt Unless Congress Acts

Thanks to a reader and tipster (send in your tips here) I was alerted to the following story about the soon to be ending tax forgiveness regulation for homeowners getting mortgage debt forgiveness. “In 2007, Congress enacted the Mortgage Forgiveness Debt Relief Act, which prevents homeowners from paying taxes when their mortgage debt is forgiven … Read more

Mortgage Problems? Facing Foreclosure? Prepare to be Scammed.

The millions of desperate homeowners who have found themselves upside down and at risk of losing their homes have created a fertile environment for scamsters. The scams on homeowners are varied and include audits and NPV tests, modification services, foreclosure rescue services, sell and lease-back schemes, and my personal favorite, mass joinder suits. Let’s start … Read more