With the Obama administration and private lenders considering mortgage principal-reduction programs to help financially distressed homeowners, the Internal Revenue Service has issued a new advisory for taxpayers who receive such assistance. The IRS gets involved in mortgage principal write-downs because the federal tax code generally treats any forgiveness of debt in excess of $600...
Washington, D.C. – March 9, 2010 – (RealEstateRama) — Speaker Nancy Pelosi released the following statement today on the Treasury Department’s allocation of $700 million to California’s housing finance agency under the President’s most recent $1.5 billion initiative to prevent foreclosures in the five hardest hit states. “Today’s announcement is a step in the...
Targeting California and the four other states hardest hit by the housing crisis, President Obama on Friday offered a $1.5 billion “innovation fund” to devise solutions for homeowners struggling against foreclosure. “What we can do is help families that have done everything right to stay in their homes,” Obama said at a town hall...
On Saturday, I wrote a post containing some ideas to make principal reductions more palatable to banks. Right now, banks want nothing to do with them, mostly because they don’t want to declare big, immediate losses. I’ve subsequently gotten several comments and e-mails about what I proposed. I want to clear a few things...
The Federal Deposit Insurance Corp. is developing a program to test whether cutting the mortgage balances of distressed borrowers who owe significantly more than their homes are worth is an effective method for saving homeowners from foreclosure. The program would be aimed at a growing population of homeowners who are underwater on their loans,...
Beginning less than a year ago a company in Scottsdale, Arizona backed by a $50 Billion hedge fund has started offering underwater homeowners a permanent solution to their nightmare of negative equity. Offering a Principal Reduction Program which essentially is a large scale Note Purchase program on the secondary market. The Principal Reduction Program...
follow: RSS