The Mortgage Forgiveness Debt Relief Act allows homeowners who get their mortgage debt forgiven through either a short sale or loan modification to have taxes forgiven up to $2 million or $1 million if married and filing separately.
The amount of forgiven debt is the difference between the amount a homeowner owes on the mortgage and the amount the mortgage company receives after closing.
Remember the Act applies only to forgiven or cancelled debt used to buy, build or substantially improve the principal residence or to refinance debt incurred for those purposes.
Refinanced debt qualifies as well to the extent that the principal balance of the old mortgage immediately before the refinancing would have qualified.
One win for the people that are hurting. If you are considering short sale or foreclosure please call me so you can understand the difference between the two and the effect it can have on you in the future. Do not just walk away.
AS OF JAN. 1, USE THE RIGHT DISCLOSURE FORM WHEN INTERVIEWING POTENTIALLY NEW EMPLOYEES IF YOU INTEND TO RUN AN INVESTIGATIVE CONSUMER REPORT
The Consumer Financial Protection Bureau is now responsible for all rules and enforcement for the Fair Credit Reporting Act and has updated the FCRA form that employers must use if they are going to conducting background investigations of prospective and current employees. If an employer uses the report to take an adverse employment action, such as terminating or failing to hire an employee, without complying with the FCRA, the employer is subject to liability under the FCRA.
The updated form is “A Summary of Your Rights Under the Fair Credit Reporting Act” to indicate that it has primary responsibility for the FCRA. On the new form–which employers must use–the Bureau encourages employees to visit its website for further information about their rights.
An employer is required to provide the Summary of Rights to job applicants and current employees before it obtains an investigative consumer report (a report that contains information gathered through personal interviews with people who know the applicant or employee) from a consumer reporting agency. Employers are also required to provide the Summary of Rights with any pre-adverse action notice sent to an employee when the employer plans to rely on the information contained in the background report to make an employment-related decision.
Employers are on notice that the CFPB will use its enforcement powers to ensure employer compliance. Go to the CFPB website for a copy of the form.
All the new forms, disclosures and manuals can be used as a violation to the extent you do not have them
SENTENCING FOR MORTGAGE FRAUD DELAYED; PERP STILL APPARENTLY SELLING HOMES
The sentencing hearing of Teresa Rose, a Ramona real estate agent, has been delayed until May 20. She pleaded guilty to one count of conspiracy to commit wire fraud and to launder money.
Federal investigators say Rose was involved in a scheme to inflate real estate process, obtain mortgages fraudulent and skim more than $1.5 million in kickbacks in 2006 and 2007. The scheme caused lenders to lose about $5 million, records say.
Rose entered a guilty plea during the summer of 2012 and told the a local newspaper in San Diego she was sorry for her role in the real estate scam.
Rose, who was an agent at Coldwell Banker Residential Brokerage during the incidents, could face up to a five-year prison sentence and up to a $250,000 fine.
Coldwell Banker terminated Rose after the indictment was handed down, a company official said. However, she's still practicing real estate under a different brokerage, based on real estate listings and her licensing record. Until sentencing is final, Rose can still list homes, show them to clients and sell them, says the California Department of Real Estate, which regulates real estate license holders.
State law allows the DRE to suspend, revoke or deny a license if the license holder enters a guilty plea to or is convicted of a felony. However, the agency cannot by law act until the conviction is final and the time for an appeal has passed. (sdut122012)
As I said, the federal prosecutors are on a roll and the roll will continue, in this lawyers’ opinion through 2014 for all loans that were funded from 2004 to the year 2014. Good luck to those that had creative stated income loans. I suggest you seek legal counsel now.
THREE INDICTED IN BALTIMORE FOR MORTGAGE FRAUD
On Dec. 20, 2012 a federal grand jury indictment was unsealed indicting Kimberly Eileen McMillian, a/k/a Kimberly Simmons and Kimberly Simmons McMillian; Olutoyin Oladosu, a/k/a Tony Oladosu; and Glenroy Emanuel Day Sr. on charges of conspiracy to commit and committing wire fraud affecting a financial institution, in connection with a million-dollar mortgage fraud scheme.
According to the nine-count indictment, from Sept. 1 to Dec. 31, 2007, McMillian and Oladosu, assisted by Day, carried out a scheme to fraudulently obtain inflated home mortgages and then diverted a substantial portion of the proceeds resulting from the sale of four homes to themselves. Specifically, McMillian, who identified herself as a real estate agent, consultant and investor and as a mortgage loan broker, arranged to purchase three homes in the Reservoir Hill neighborhood of Baltimore in the names of others, after she told the owner of the company that owned the homes that she had clients from New York City who were eager to buy residential properties in Baltimore.
McMillian then contacted a loan officer and advised him that she was working as a mortgage loan broker and wanted to submit several loan application packages to his bank for financing, because her own company would not be able to get the loans approved in time to meet the currently scheduled closing dates for the four Baltimore properties. The loan officer agreed to review the packages, each of which consisted of a loan application identifying the purchaser of the house and detailing their employment history, earnings, assets, and debts, along with supporting documentation such as pay stubs or vouchers and bank account statements.