A New York Times article explains how A HIGH credit score won’t necessarily insulate borrowers from the home-foreclosure crisis.

Read the full story here

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A Las Vegas Business Press article discusses the growing trend of lenders coming after developers for their personal holdings

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A Las Vegas Business Press article discusses how lenders can pursue property owners long after they default on a mortgage.

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If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income.  Here are 10 facts the IRS wants you to know about mortgage debt forgiveness.

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build, or substantially improve your principal residence and be secured by that residence.

5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.

7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

8. Debt forgiven on second homes, rental properties, business properties, credit cards, or car loans does not qualify for the tax relief provision.  In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more detail about these provisions.

9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender.  By law, this form must show the amount of debt forgiven and the fair market value of any foreclosed property.

10. Examine the Form 1099-C carefully.  Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit IRS.gov. A good resource is IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. Taxpayers may obtain a copy of this publication and Form 982 either by downloading them from IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Tisha Black Chernine, Esq.

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Reading: “Agency seeks damages from failed bank’s officials”( http://twitthis.com/w4d6j3 )

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Credit and Its Problems – a free seminar, March 3rd @ 7 PM at Sahara West Public Library. RSVP Abe Geller 869-8801

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Protecting Your Assets – A free seminar, March 2nd @ 10 AM at Black & LoBello office, seating is limited. RSVP Abe Geller 869-8801

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James E. Herbe, Esq. mentioned in In Business “Banks limited in recovering losses” http://bit.ly/94sz6e Banks limited in recovering losses

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In an effort to streamline their processing of a half-million short sales,  Bank of America has announced that all short sales must now be processed  through the Equator online transaction manager regardless of the file’s proximity to approval.  Effective March 1, 2010, all properties secured by a Bank of America loan must be uploaded electronically.  No existing short sale reviews will be grandfathered in.  All files, regardless of the stage, will have to be resubmitted and assigned to a new negotiator.

Historically, Equator is a software platform which has been used to track matters related to depressed properties. Traditionally, asset managers and realtors use Equator to list and sell REO properties.  Other vendors such as title companies and eviction attorneys use it to assist in relocating the occupants of REO properties.

Bank of America believes that Equator will  “streamline” and expedite short sale negotiations by uploading the necessary documents to save time.  However, the uploading process takes as much time, on average, as faxing.  More importantly, it still takes several weeks for Bank of America to open the file and assign a negotiator.

What this will mean for many of our clients is that the entire short sale package must be resubmitted through the Equator system and the timeframes for processing will have to start over.   Due to the particularity of the program, Black & LoBello may be forced to request  additional or supplemental documentation from all parties involved in the transaction.  Additionally, the short seller is now required to obtain login information before any financial data can be uploaded to the system. Once you have obtained your login information, please forward the login, temporary password, and security question  to your processor so that we may make the proper submissions on your behalf.

Black & LoBello  apologizes in advance for the inconveniences  Bank of America’s decision will cause our clients.

Tisha Black Chernine, Esq.

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Claiming the First-Time Homebuyer Tax Credit on your 2009 tax return might mean a larger refund but it can seem complex. Here are five tips to clarify the documentation requirements:

Settlement Statement: Purchasers of conventional homes must attach a copy of the Form HUD-1 or other properly executed Settlement Statement;

Properly Executed Settlement Statement: Generally, a properly executed Settlement Statement shows all parties’ names and signatures, property address, sales price and date of purchase. However, settlement documents, including the Form HUD-1, can vary from one location to another and may not include the signatures of both the buyer and seller. In areas where signatures are not required on the settlement document, the IRS encourages buyers to sign the Settlement Statement when they file their tax return – even in cases where the settlement form does not include a signature line.

Retail Sales Contract: Purchasers of mobile homes who are unable to get a Settlement Statement must attach a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.

Certificate of Occupancy: For a newly constructed home, where a Settlement Statement is not available, attach a copy of the Certificate of Occupancy showing the owner’s name, property address and date of the certificate.

Long-Time Residents: If you are a long-time resident claiming the credit, the IRS recommends that you also attach documentation covering the consecutive five-year period such as the Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

For more information about the First-Time Homebuyer Tax Credit and the documentation requirements, please contact your CPA or tax professional and visit IRS.gov/recovery.

Tisha Black Chernine, Esq.

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