Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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IRS adds foreclosure help section to website
 
ASSOCIATED PRESS

Last update: September 17, 2007 – 9:12 PM

The IRS said Monday it has added a new section to its website to answer tax questions for those losing their homes to foreclosures.

The new section on http://www.IRS.gov includes a worksheet to help homeowners determine whether they are eligible for any foreclosure-related tax relief.

For those who find they owe additional tax, the section includes a form for requesting a payment agreement with the IRS.

The tax agency noted that if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule also allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.

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Thanks Blossom,

Takes a lot off my mind.  I didn't think being insolvent was so great until now. 

Bob
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Read the rules for form 1099-C. It applies to almost all sub prime loans.

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Pass-throughs and REMICs.   Until further guidance is issued, no penalty will apply for failure to file Form 1099-C, or provide statements to debtors, for a canceled debt held in a pass-through securitized debt arrangement or held by a REMIC.


They don't have to report it. Don't let them trap you.

http://www.irs.gov/instructions/i1099ac/ar02.html#d0e334


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