NOW THAT JP MORGAN HAS REACHED A SETTLEMENT WITH THE GOVERNMENT, IT WILL BEGIN THE PROCESS OF PROVIDING DEBT FORGIVENESS AND OTHER MORTGAGE RELIEF TO STRUGGLING HOMEOWNERS.
UNDER THE TERMS OF THE AGREEMENT, JP MORGAN WILL RECEIVE CREDIT FOR RELIEF IT PROVIDES IN FOUR MAJOR CATEGORIES:
MODIFICATIONS
RATE REDUCTION/REFINANCING
LOW INCOME AND DISASTER AREA LENDING; AND
ANTIBLIGHT LENDING
To get credit, JP MORGAN MUST SUBMIT THE LOANS FOR REVIEW. SO FAR THEY HAVE SUBMITTED 100 LOANS FOR REVIEW AS A DRY RUN
JP MORGAN HAS BEEN GIVENA DEADLINE OF 2017 TO FULFILL ITS REQUIREMENTS UNDER THE SETTLEMENT. THE SETTLEMENT WAS NEGOTIATED THROUGH THE RESIDENTIAL MORTGAGE-BACKED SECURITIES WORKING GORUP, WHICH IS A JOINT STATE AND FEDERAL GROUP FORMED BY THE GOVERNMENT TO INVESTIGAGE WRONGDOING WITHIN THE MORTGAGE BACKED SECURITIES MARKET
IF YOU HAVE A LOAN OWNED BY JP MORGAN AND ARE SEEKING RELIEF, CALL US TODAY. WE CAN ASSESS WHETHER YOU QUALIFY FOR A LOAN MODIFICATION AND NEGOTIATE THE MODIFICATION WITH YOUR LENDER.
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If your forgiven debt, under a short sale, loan settlement or credit card cancellation and settlement, your forgiven debt is subject to taxation. You will usually receive a form 1099-C Cancellation of Debt from the lender. This form sets out the amount of cancelled or forgiven debt. You will file the 1099-C with your federal tax return the following year, and the amount of cancelled debt is added to your gross income.
There are however exceptions and exclusion that may save you from the requirement to report cancelled debt as part of gross income.
Exceptions and Exclusions:
Not all cancelled debt is subject to income tax. The IRS recognizes both exceptions to cancelled debt rules as well as exclusions. The following is some of the exceptions:
Gifts, bequests, or inheritances
Some qualified student loans
Any debt that had it bee paid, would have been deductible by the borrower
A qualified reduction in price offered by a seller
Certain payments on the balance of a mortgage under the Home Affordable Modification Program
When a loan is secured by real estate property, such as a mortgage, and the lender accepts a short sale, you may need to report the forgiven debt as capital gains or losses on the sale of property. However, exclusions apply:
Debt cancelled under certain bankruptcies
Cancelled qualified farm debt
Cancelled qualified real property business debt
principal residence indebtedness under the Mortgage Debt Relief Act
The Mortgage Debt Relief Act covered debt forgiven from 2007 through 2013.
The cancelled debt is also not income if you receive a Form 1099-C as a result of:
You received the cancelled debt due to a bankruptcy; or
you are insolvent immediately before the cancellation of the debt.
Insolvency is defined as your debt exceed the value of your assets.
Cancelled debt can be challenged both PRIOR to the 1099-C being issued. That is why hiring an attorney to negotiate the short sale and make sure the borrower/seller is provided the proper classification for the home and debt forgiveness, is crucial. The term of the 1099-C will be listed on the short sale approval letter and once issued and signed, can not be changed or modified.
Cancelled debt can also be challenged AFTER the 1099-C is issued.
Don’t go it alone. Speak to a knowledgeable attorney to handle your short sale so that you are aware of your tax consequences and can structure the best possible outcome for your needs.
Attorney Jacqueline A. Salcines, Esq., is also an accountant and can provide tax advice as well as negotiate the sale of your property and short sale terms. The first consultation is always free of charge.
TRUST | COMMITMENT | RESULTS
LAW OFFICES OF JACQUELINE A. SALCINES706 S. DIXIE HIGHWAY2ND FLOORCORAL GABLES, FL 33146TEL: (305) 669-5280J.SALCINES@SALCINESLAW.COM
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12014-07-23 12:04:172022-12-20 13:59:46HOW TO AVOID TAXES ON CANCELLED MORTGAGE DEBT
Fannie Mae no longer participates in the traditional HAFA short sale program. The new Fannie Mae HAFA short sale programplaces more stringent guidelines on borrowers who reside in the properties and want to have a short sale with deficiency forgiveness.
HAFA is an acronym for Home Affordable Foreclosure Alternatives and is a branch of the Making Home Affordable program for short sales for sellers in distress.
The first order of business in these, is to find out if the loan is Fannie Mae held. This can be obtained by going to the Fannie MAe website or Fannie Mae Loan Lookup. While the Fannie Mae HAFA Short Sale program offers:
Release of personal liability
No deficiency judgment
Financial incentives to the servicers
Payment of $8500 to 6% cap to the second lien holder
Relocation assistance to the borrower up to $3,000 and
Traditional commissions to realtors
The following are some of the reasons Fannie Mae can easily turn you down or request borrower contributions, unlike the traditional HAFA short sale Program.
For example:
If the seller can afford the mortgage payments and chooses not to make the payments the short sale can be declined.
If the seller has cash reserves that are equal to 3 or more PITI payments or $5,000 and up, the short sale can be declined
If the foreclosure sale is pending, the short sale can be rejected because the sale is too close around the corner
If the home is vacant, the borrower has to prove they moved more than 50 miles away and they have not bought a new home in 90 days
If the subordinate lien holder will not release its lien for $6,000, then the borrower can be requested to make a contribution.
the borrower may be asked to make a contribution or enter into a promissory note for the deficiency, or both, if they have reserves or savings in the bank
Servicing Guide Announcement SVC-2012-19 sets forth the Fannie Mae HAFA short sale requirements. Read up about it as the rules for short sales are changing.
Call us for a free consult to see if you qualify. The consultation is always free of charge.
TRUST | COMMITMENT | RESULTS
LAW OFFICES OF JACQUELINE A. SALCINES, PA706 S. DIXIE HIGHWAYSECOND FLOORCORAL GABLES, FL 33146TEL. 305 669.5280J.SALCINES@SALCINESLAW.COM
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12014-07-23 11:49:522022-12-20 13:59:50FANNIE MAE SHORT SALE – CHANGING ALL THE HAFA RULES FOR SHORT SALES
In 2012, under the Wigod v. Wells Fargo Bank, N.A., 673 F.3d 547 (7th Cir. 2012), the Seventh Circuit Court of Appeals ruled that despite having signed a loan modification agreement and entered into a trial period, the homeowner could maintain a private cause of action against the lender or servicer under certain circumstance. The court held that borrowers who have entered into a trial period plan under HAMP can seek relieve when those servicer fail to abide by the terms of the trial period payment plan.
Under HAMP, the borrowers are provided with a trial period, requiring them to make payments for usually three months, and thereafter, the final modification agreement is supposedly mailed to the homeowner borrower. However, in cases, the bank does not follow through with the final HAMP modification and fails to offer it to the borrower. Or may fail to adhere to the same promised payments as set forth in the trial period.
In Wigod, the homeowner Wigod, was given a trial period payment plan and advised that upon completion of the trial period, the bank would offer a permanent modification after all the payments were made. The borrower made the payments and the bank reneged on its offer and declined a final modification. The borrower sued alleging breach of contract, promissory estoppel, consumer fraud and fraudulent misrepresentation.
The Seventh Circuit on appeal found that the lender misled the homeowner into believing that it would offer her a permanent modification.
Following Wigod, courts across the nation have been diligently reviewing their trial period plans to avoid being sued. The homeowners should have in fact signed the trial period plan and received it back fully signed by the lender.
Ensure that your loan modification is carefully processed, eligibility determined, and diligently approved by the lender by hiring the Law Office of Jacqueline A. Salcines, PA to enforce and negotiate it for you. We are always on top of all court rulings for homeowners and here to protect your best interests.
TRUST | COMMITMENT | RESULTS
LAW OFFICES OF JACQUELINE A. SALCINES, P.A.706 S. DIXIE HIGHWAYSECOND FLOORCORAL GABLES, FL 33146TEL. (305) 669-5280EMAIL: J.SALCINES@SALCINESLAW.COM
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12014-07-17 13:30:312022-12-20 13:59:46LOAN MODIFICATIONS AFTER WIGOD V. WELLS FARGO BANK, N.A.
Beginning January 2014, new CFPB (Consumer Financial Protection Bureau) rules to protect homeowners and consumers shopping for home mortgages went into effect. The rules sharply reduce the runarounds and stalling techniques frequented by the banks for both sort sales and loan modifications under the HAMP Making Home Affordable Program.
Virtually every mortgage now issued will be subject to these new rules. The rules set up a new type of mortgage referred to as a “Qualified Mortgage” which determine borrower eligibility to repay, prior to giving the loan. It considers such factors as borrower income, assets, debt and credit history.
For borrowers seeking Loan Modifications, there are added protections as well. Mortgage servicers will now have to call or contact the borrowers by the time they are 36 days late on their mortgage. The borrower can not initiate a foreclosure until 120 days delinquent and by that time, should have already offered certain options to the delinquent borrower with regard to loss mitigation.
Mortgage servicers can also not start a foreclosure while they are working on a submitted application for modification. This is an incredible win for homeowners in distress that are legitimately and diligently pursuing modifications due to financial hardships out of their control.
If the loan modification is denied, the lender must provide clear and concise information as to why it was denied, sent to the borrower explaining the reason for rejection.
Congress created the CFPB to make sure “financial markets work for the consumer” For more information you can contract the CFPB at (855) 411-2372 or contact us at the Law Offices of Jacqueline A. Salcines, PA
We process loan modifications, short sales as well as loan settlements and other loss mitigation options for our clients. We know how to put the new rules and regulations to work for you so that you don’t lose your home due to the banks runarounds.
Call today. The first consult is always free of charge and can provide you with peace of mind.
TRUST | COMMITMENT | RESULTS
LAW OFFICES OF JACQUELINE SALCINES, P.A.706 S. DIXIE HIGHWAYSECOND FLOORCORAL GABLES, FL 33146TEL: 305.669.5280J.SALCINES@SALCINESLAW.COM
https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.png00jaspa1https://jaspa1.wpengine.com/wp-content/uploads/2018/07/logo_final_dark1.pngjaspa12014-07-17 13:20:372022-12-20 13:59:36CONSUMER FINANCIAL PROTECTION BUREAU GIVES HOMEOWNERS NEW RIGHTS AND GREATER PROTECTION
First time home-buyers you are in luck. FHA has unleashed a new program called the HOMEOWNERS ARMED WITH KNOWLEDGE or HAWK program last month for homeowners purchasing for the first time. This program is a way for home buyers to cut their mortgage insurance premium costs by attending counseling classes. The idea behind it is to make home buyers more responsible purchasers when it comes to their mortgage payments, in the wake of the mortgage crisis. The HAWK program announced by the Federal Housing Administration was created with the idea that the more responsible home buyers are, and understand about home ownership, the less likely they are to default on their payments, and thus reduce the risk for FHA.
And… after two years of no delinquent payments, the homebuyers will get even more program discounts and incentives.
Borrowers who take the classes which include several courses about closing, can save an average of $325.00 per year or $10,000 over the life of the loan.
FHA does not write loans, it merely insures them. Therefore, borrowers can get loans FHA backed with as little as 3.5 percent down and a credit score of 560.00. But this type of loan is a huge risk because of the percentage down required. Therefore, while PMI is required, this program will offset the amounts that homebuyers pay over the life of their loan.
Under the program, the homebuyers that take the counseling class BEFORE signing a contract, can earn a 50 basis point reduction in upfront mortgage insurance and a 10 basis point reduction in the annual premium costs. Mortgage insurance premiums would also be cut to 1.35 percent.
The long term savings are impressive and can assist with homebuyers that have faced several hurdles in buying properties because of the additional costs and fees lenders are charging post mortgage crisis.
To find out more, contact us. The first consultation with attorney Jacqueline A. Salcines, Esq. is free of charge and can provide valuable information for making that first and ever so important home purchase.
TRUST | COMITMENT | RESULTS
Jacqueline A. Salcines, PA706 S. Dixie Highway2nd FloorCoral Gables, FL 33146Tel: 305.669.5280
2014 is the YEAR OF THE SELLER in Miami-Dade and Broward counties. There are more buyers then inventory of properties on the market. A sellers market therefore makes hiring the services of an experienced team of realtor and real estate attorney/title agent more crucial then ever. Buyers and investors want to get properties at the discounted prices they were used to in the years 2009 through 2013. However, with a seller market, comes the homework a seller must do to make sure the property is accurately priced to sustain a buyer and get to the closing table.
The first and most important task is finding the right realtor. This alone can make a huge difference between someone hard at work to list, market and sell your property, so that the number of days on the market are minimized. Once a realtor is picked and the property is listed, hiring a real estate attorney is also a necessity. A real estate attorney hard at work for you will review and check the contract provisions, and provide advice as well as negotiate any terms between the seller and buyer. A real estate attorney will also make sure all contract deadlines are strictly abided by, including deadlines for inspections, financing, as well as hold the deposits in escrow till closing.
Once the contract is signed, many issues can arise between contract and closing. Many properties are subject to appraisal contingencies and when the buyers lender appraisal comes back lower then the purchase price, the sellers team of realtor and attorney needs to be ready to fight for that price. This requires solid comparables to dispute value. Often the mere wording of a contract stating that it is not subject to appraisal can avoid the entire contract falling through if an appraisal falls short by the buyers lender.
Lien searches can also reveal open permits or liens and/or violations that must be closed by the seller prior to closing. Often times these can be negotiated or closed out for less then required. However, it requires the savvy work of the real estate attorney to get this done for the seller.
Commercial sellers and sellers that hold title either in a Trust, LLC or corporation, also require additional Corporate Resolutions and or Trust Affidavits at closing to ensure that the closing is authorized by the entity. A real estate attorney prepares all these forms on behalf of the seller in order to make sure the conveyance is legitimate.
Foreign sellers are also subject to a 10% withholding at the time of sale, unless exempt. Often, some attorneys may not be clear on diplomatic exemptions or other that exist which do not require the FIRPTA withholding. This is information that either a title company or real estate agent may not know and be familiar with.
At the Law Offices of Jacqueline A. Salcines, PA, our mission is to provide our clients with outstanding legal services that consistently exceed their expectations. Our law practice is dedicated to all aspects of the real estate transaction including title services, legal services and advice, lien search services, estoppel services, escrow services.
Attorney Jacqueline A. Salcines, Esq, is also an Accountant and therefore can provide solid advice regarding incorporating, tax repercussions or other considerations for the seller, specifically foreign sellers, at the time of closing.
We take pride in our ability to address your legal needs and resolve your legal matters, whether selling, buying, investing or merely shopping around. We strive to fully understand our client’s objectives and are committed to providing outstanding and sound legal and tax advice.
Call us today for a free consultation and let us put our expertise to work for you. Offices located in Coral Gables.
TRUST | COMMITMENT | RESULTS
LAW OFFICES OF JACQUELINE A. SALCINES, P.A.
Jacqueline A. Salcines
706 S. DIXIE HIGHWAYSECOND FLOORCORAL GABLES, FL 33146TEL. 305.669.5280EMAIL US DIRECTLY: J.SALCINES@SALCINESLAW.COM
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NOW THAT JP MORGAN HAS REACHED A SETTLEMENT WITH THE GOVERNMENT, IT WILL BEGIN THE PROCESS OF PROVIDING DEBT FORGIVENESS AND OTHER MORTGAGE RELIEF TO STRUGGLING HOMEOWNERS.
