Foreclosure Article


The Mortgage Forgiveness Debt Relief Act

The Mortgage Forgiveness Debt Relief Act generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.  Restrictions and rules apply to the act. For example the debt forgiven must have taken place between 2007 through 2014. 

For more information about the Mortgage Forgiveness Debt Relief Act please visit the website of the Internal Revenue Service.


Comments:

QUESTIONS

  • I have 2 investment homes in AZ and my primary home in CA where I live. Short sale is not an option for me b/c I don't qualify because I have assets. My question is if I foreclose on the 2 investment homes will the lenders put liens on my primary home that has about $200k in equity? Or do I just have poor credit for 7 years?
  • Currently my home is not in foreclosure. I am behind in payments and the bank will not allow me to make partials. They are willing to reinstate the loan but I am unable to raise the 6 payments required. I have received default and letters of intent to accelerate. The bank is recommending a short sale. I want to work this out and I have saved 3 payments and I wish to stay in the home. We received a modification in 2012 and a special forbearance in 2013 I am back to work after being laid off in September and emergency surgery in December. Do I claim bankruptcy in order to save my home?
  • My house was foreclosed on in 2008; the 2nd Mortgage was not used to purchase the home, and the 2nd Mortgagee has now sold the "note" to a collection agency. If the 2nd Mortgagee never filed or sued me on the deficiency can the collection agency pursue the collection of this debt? Who is the holder of the written contract that I had with the original lender?
  • Are there any tax consequences for the state return after a forclosure or short sale?
  • I just received a notice saying I have to vacate my house that it was auctioned but I'm paying my house and I'm never late and company who say they purchased have other name as home owner not mine and my husband what is going on what can I do my house wasn't foreclosed bank says everything okay in there side how do protect myself how is possible for it to be auctioned
  • If my spouse bought a home that is most likely going into foreclosure. I was not involved in any way for the purchase of this property nor am I on the title. I do however pay the mortgage on this property. If this goes to foreclosure, can the lender come after me for any reason?
  • After foreclosure involving a single family residence the new owner filed an unlawful detainer action against the tenants who had no rental agreement after serving them with a 90 day notice to quit. The tenants refuse to move and have not paid rent.They only had a month to month oral agreement with the former owner. One of the tenants claims that he is on parole and cannot be evicted. Is this a valid defense to the UD action?
  • Can I get specifics on Foreclosures and how long before I go into foreclosure do have to make a payment?
  • How do I foreclose on a property that has a breech of contract for a promissory notes that was secured by the home with a lien and one that was recorded last year? What is the process?
  • Since 2010 I've lived at a home in mesa az. Recently my friend gave her home back to bank/ reverse mortgage and lien on it from IRS.She moved out to Missouri in july or first of aug 2013.I still am in the home whike she knew this she broke thru a window and hsrassed me.I called police they said she has a right to come in and change the locks.what legal rights do I have I pay utility bill at the resident.the mortgage company said it is in foreclosure so I need to know my rights

STORIES

LegalLEARN

FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS

Documents

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans ReadSpeaker

.pdf  AzMortgageResource.gov ReadSpeaker

RELATED ARTICLES

Avoiding Foreclosure of Your Home

Predatory Lending Schemes and Scams

Information for Homeowners Facing Loss of a Home

County Tax Assessors

Where to Find an Attorney for Specific Legal Advice

Loan Modification Frequently Asked Questions

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans

WHAT IF I RENT A HOUSE THAT'S IN FORECLOSURE - The Protecting Tenants at Foreclosure Act

FORECLOSURE DEFICIENCIES IN ARIZONA: Will I still owe money after a foreclosure?

Where can I find legal help with a foreclosure?

Will bankruptcy save my home from foreclosure?

Did you know the Arizona Attorney General’s Office has a wide range of statewide assistance programs funded through the national mortgage settlement that could benefit you or people you know?

Mortgage Reaffirmation Requirements Bogus

Renting a Foreclosure

Recovering Excess Proceeds After Foreclosure of Your Home

Veterans Facing Foreclosure

LINKS

Arizona Housing Information

HUD in Arizona

Federal Consumer Action Handbook Online

Pima County Courts Self Service Center

Arizona 2-1-1

See More...