NEW YORK, Nov 3 (Reuters)
Investors want to lift the “shroud of secrecy” over the proposed $8.5 billion settlement of Bank of America Corp’s mortgage-backed securities liability in the coming weeks, a lawyer said on Wednesday.
Dan Reilly, a Colorado lawyer representing American International Group Inc, told a New York federal judge that some investors want negotiations and documents over the deal to be made available to parties who have an interest.
Article taken from Politico: Written by Josh Boak & Joseph Williams
The Obama administration’s efforts to fix the housing crisis may have fallen well short of helping millions of distressed mortgage holders, but they have led to seven-figure paydays for some top executives at troubled mortgage giants Fannie Mae and Freddie Mac.
Because of the current mortgage foreclosure crisis, many people are concerned about the issue of forgiven debt and receiving a Form 1099. Below is an explanation of what is cancelled debt directly from the IRS website:
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
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Previously I wrote on the subject of loan modification where I explained mortgage lenders involved in the government bail-outs involving TARP (Toxic Asset Recovery Program) funds must attempt to qualify certain homeowners for a HAMP (Home Affordable Modification Program) loan modification. One of the primary goals of the HAMP program is to lower the homeowner’s mortgage payment to 31% of their gross income. For people with a regular job, determining gross income is easy. As an example, if a person makes $15.00 an hour and works 40 hours a week, their gross annual income is: $15.00 x 40 hours x 52 weeks = $31,200.00. You then divide the annual income by 12 (12 months in a years) which equals a gross monthly income of $2,600.00. You then multiple $2,600.00 by 31% and you will arrive at a monthly mortgage payment of $806.00, which includes taxes and insurance. In this example, $806.00 would be considered a reasonable payment.
Years ago it was not that common to see deficiency lawsuits involving real property. But, because of the current mortgage foreclosure crisis, deficiencies on homes have become a real issue for a lot of people. As I explained previously, when a person owes more on a piece of property than what it is worth, and the person is letting the property go, whether it be through a foreclosure, short sale or deed in lieu, and the lender is not being paid in full, there is a real chance for a deficiency suit. Since second mortgages and home equity lines of credit (HELOC) almost never get paid in full, a person’s chance of having one of these types of lenders suing them for a deficiency judgment is great. But, first mortgage lenders have the same rights and are starting to consider and sue people for deficiencies.
As I reported earlier this year, the mortgage foreclosure case of J.P. Morgan Chase Bank v. Joan Eakins, et al. Case No 03-CA-004775 Div A, Hillsborough County, Florida, finally went to trial. This was my oldest case and had been pending for 8 years. At the conclusion of the trial, both the judge and the jury found for my clients, the Eakins. After a couple post-trial motions the parties settled the case and the bank filed a satisfaction of mortgage and paid my clients’ attorney fees and costs. My clients now own their home free and clear of any mortgage.
One of the best things a client can do to assist their attorney during their divorce is to keep a journal. Every time the divorce attorney gets ready for a client’s deposition, mediation, or court hearing the file is reviewed. Being able to read about the client’s concerns, history, and facts helps the attorney in preparing.
After parties have divorced, if either parent is looking to move more than 50 miles away from where they currently reside, it is very important to get permission to do so. Fla. Stat. § 61.13001 requires that if a parent with primary residential custody of a child or children wants to move, they must either obtain a court order or written agreement allowing a move of more than 50 miles from the current residence.
When spouses go through a dissolution of marriage, it is not simply limited to severing the emotional relationship between the two people. Divorce splits up a family, may require significant changes in living arrangements, and the court may be called upon to make decisions regarding alimony, parental timesharing, child support, property division, and asset/debt distribution. These are all legal court orders that are set forth by the Florida court system.
The right of grandparents to visit and contact their grandchildren are provided for in Florida law. However, the United States Supreme Court and the Florida Supreme Court have set down several decisions stating that these grandparents’ rights laws are unconstitutional as an invasion of the rights of the parents to raise their own child.