February 28, 2009

Estoppel The Insanity!

In the state of Florida, if a homeowner purchased a property with a first and second mortgage (100% financing) at time of purchase; is it true that if the home is sold short sale that the second mortgage company cannot go after the seller for the unpaid balance of the note?

Carol (more…)

February 26, 2009

Fanne Mae Short Sale Approval

Filed under: Mortgage,Short Sale

Hello Paul,

Great site!

On a short sale offer, who has the final say on whether the offer is accepted or not, is it Fannie Mae or the servicer of the loan? Can Fannie Mae approve the offer and the servicer rejected?

Robert (more…)

FTC, CompuCredit, Mary & Forward Flow

First off, I want to thank you for a great and informative site. I’ve learned a lot from it.

My question is in June, 2008 the F.T.C. filed suit against Compucredit for deceptive practices. I was one of the consumers affected by this ruling because I held an Aspen Mastercard during that time frame.

Compucredit was ordered to remove the tradeline from all three consumer report and, if my reading is correct, I believe it included debt collectors too!

Compucredit did remove the tradelines from all three of my reports but now a collection agency called Midland Credit Management has bought the account and is attempting to collect. Is there a grey area here?

I’m not sure whether to debt validate M.C.M. or send them a copy of the F.T.C’s order and insist that they remove it.

Any help would be greatly appreciated.

Mary (more…)

Helpful Professional Credit Repair – Call Chris Rocks!

Chris Rocks, Regional Director
National Credit Federation
Direct: 847.941.0654

February 25, 2009

Second Mortgage Pay Me?

Filed under: Collections,Short Sale

Hi Paul,

I recently had a home we did a short sale on.  There was a second on the property with Option One. We did the sale in May of 2008. 

Option One agreed to take $1000.  The balance was about $80k. 

Now I am getting calls from a company called Real Time Resolutions.  They wont tell me much because I refuse to give them my social, but they said it was in regards to that property.

Could I still owe even though they accepted a pay off?

-Grady in California (more…)

Karen’s Collections

Good Morning Paul,

This is a very informative site. I have been working on my credit since Jan.09.

I just received 2 debt validation responses from collection agencies the first is for a medical bill my son incurred when he was in college the insurance company did not pay now midwest Credit & Collections say I owe what do I do a pay to delete ltr?

The next is from NCO on behalf of Progressive Insurance I cancelled the policy but they say I still owe the remaining 206.46 what should I do?

Karen (more…)

IRS $8,000 Tax Credit for First Time Home Buyers

Filed under: Real Estate

WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit,” said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

Source – IRS.gov

February 24, 2009

Give Ear To Gene’s Quasi Estoppel

Filed under: Forbearance

When a borrower enters into a forbearance agreement with a debt collector (loan servicer) any and all amounts that may be stated as due or past due within the agreement, are still subject to validation under RESPA Section 6 and/or Section 809 of the Fair Debt Collection Practices Act.  Or, does signing the agreement “verify” the debt forever, thus precluding any and all future request for validation or explanation?

As you may well know, a forbearance agreement, written by the loan servicer or debt collector on the eve of a foreclosure sale, is always, or most often, favoring the financial rewards of the servicer and seldom, if ever, the borrower. 

Our servicer, SN Servicing, Inc., claims once you are forced into an agreement and sign it, as in our case under duress, you forfeit all rights to debt validation.  Your signature validates any and all sums contained or referred to within the documents and you surrender all statutory rights, both Federally and those within applicable State Statutes. 

Without the clearly defined legal right to have the debt factually and accurately documented, either before or after signing, has and will lead to continued abuses of the borrowers by the servicers. 

Without proper regulation the forbearance agreement, in the hands of the unscrupulous collector in this devastated financial market, will become no more than a “ransom note” demanding payment of any and all sums they choose to fabricate, metaphorically,  presented in a box with the severed ear of a loved one.  You either accept their demands for payment or lose that which you love so dearly and have struggled for so many years to maintain. 

Where can I get a clarification of this question?  Thank you again for your assistance.


Joe Short Sale

We have a house in Bradenton, Florida that was purchased as a primary residence at the height of the price escalation. Due to some job changes and income changes, we can no longer afford the payments and we are trying to do a short sale as you can imagine the house is worth a lot less than we owe. The 1st mortgage is with US Bank and we have an equity line with Wells Fargo. After several calls over serveral months and little or no help from US Bank, the latest is they will not do a short sale as long as there is another lien on the property. We called Wells and they said we could try and settle the equity line which they will usually do for 60 – 80% of the balance but we don’t have the money to settle for that much. Rep at Wells said they have never heard of a 1st mortgage holder not allowing a short sale because of a second mortgage or in our case an eqity line.

We are currently three (3) months behind with US Bank, not behind with Wells. We tried on several occasions to discuss alternaties with US Bank before we got behind but they would not discuss anything, we feel because we were not behind at that time.

Are there any alternatives other than just letting the property go into foreclosure?

If US Bank forecloses what are the chances that Wells will get anything?

Can either of the lenders come after us for the remaining balances on either loan?

I can understand the lenders not wanting to loose any more than they have to but foreclosure seems a lot worse for everyone because there is no doubt the property won’t be maintained, will look terrible when it is tryig to be sold and will bring a lower price than if they would allow us to maintain the home during a short sale, which we are still doing, and hopefully get as much value out of it as we can.

US Bank’s attitude towards this situation really just doesn’t make a whole lot of sense unless there is something “behind the scenes” that we don’t know about that benefits them more, maybe some additional amunition for more “bail out money.”

Joe (more…)

TILA Release The Deed of Trust!

I submitted for loan mod & was denied. The Trustee sale is 6 Mar 2009. Im looking for loan at current market value. Should I try TILA or foreclosure course of action. Not much time.

Rosana (more…)

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