Thanks to the diligent work by the Helpful Hands Counselor – Regional Director Erika Echevestre another Florida homeowner is able to avoid foreclosure and obtain the mortgage relief she needed.

Testimonial from Alba and her family: Gracias por su ayuda y apoyo Que Dios les bendiga y les guarde.

Erika Echevestre

Keys to preserving home ownership in Bushnell, Central Florida foreclosure avoidance workshop. Open to the public.

When: December 20, 2008
Time: 10:00 am to Noon

Where: Bushnell Library
402 N Florida St
Bushnell, FL 33513

RSVP

Free Foreclosure Workshop Open to the Public

Saturday: December 13, 2008
Time: 1:00 pm

Location: Sunrise Dan Pearl Library
10500 W. Oakland Park Blvd.
Sunrise, FL 33351.

The Helpful Hands Foundation is conducting a “STOP FORECLOSURE” Seminar

Date: Thursday, December 4, 2008

Location: Casselberry Library
215 North Oxford Rd.
Casselberry, FL 32707

Time: 6:30 pm – 7:30 pm

The Helpful Hands Foundation is a Fannie Mae Approved non-profit housing counseling agency.

I look forward to seeing you there.

http://www.thhf.org/blog/?p=1327 December 13, 20082:00 PMto3:00 PM

Foreclosure Prevention Workshop for Homeowners in Orlando, Florida

Saturday: December 13, 2008

Time: 2:00 pm – 3:00 pm

Location:
534 S. Chickasaw
Orlando, Fl 32825
in front of Rio Pinar Plaza

Contact Regional Director: Erika Echevestre (407) 908-8125

Foreclosure Prevention Workshop for Homeowners Daytona Beach, Florida

Are you late on your mortgage?
Fight For Your Home!!

Workshop: Tuesday, December 9th, 2008
Time: 5:00 pm – 6:45 pm

Where: City Island Library
105 E. Magnolia Ave
Daytona Beach, FL

Open to the Public, Come and Learn how to Save Your Home and Avoid Foreclosure!

Tuesday December 16, 2008

7:00 pm – 8:30pm
The Learning Center of South Park

7350 Futures Drive Ste 6
Orlando , Fl. 32819

When the securitizing banks acting as trustees for the investors are unable to present written proof of ownership at a time that would entitle them to foreclose, they typically file what’s called a lost-note affidavit. April Charney is a Florida legal aid attorney well versed in these issues, having gotten foreclosure proceedings dismissed or postponed for 300 clients in the past year. In a February 2008 Bloomberg article, she was quoted as saying that about 80 percent of these cases involved lost-note affidavits. “Lost-note affidavits are pattern and practice in the industry,” she said. “They are not exceptions. They are the rule.”

In the past, judges have let these foreclosures proceed; but in October 2007, an intrepid federal judge in Cleveland put a halt to the practice. U.S. District Court Judge Christopher Boyko ruled that Deutsche Bank had not filed the proper paperwork to establish its right to foreclose on fourteen homes it was suing to repossess.4 That started the ball rolling, and by February 2008, judges in at least five states had followed suit. In Los Angeles in January, U.S. Bankruptcy Judge Samuel L. Bufford issued a notice warning plaintiffs in foreclosure cases to bring the mortgage notes to court and not submit copies. In Ohio, where foreclosures were up by a reported 88 percent in 2007, Attorney General Marc Dann was reported to be challenging ownership of mortgage notes in forty foreclosure cases.5

Few defendants, however, are lucky enough to have advocates like Charney and Dann in their corner, and most defaulting debtors just let their homes go. A simple challenge can be filed to the complaint even without an attorney, and some subprime borrowers have successfully defended their own foreclosure actions; but retaining an attorney is strongly recommended. People representing themselves are often not taken seriously, and they are likely to miss local rule requirements. With that warning, here is some general information on challenging standing to foreclose:

Some states are judicial foreclosure states and some are non-judicial foreclosure states. In a judicial foreclosure state (meaning the matter is heard before a judge), if a promissory note or recorded assignment naming the plaintiff is not attached to the complaint, the defendant can file a response stating the plaintiff has failed to state a claim. This can be followed with a motion called a demurrer to the complaint. Different forms of demurrers can be found in legal form books in most law libraries. In essence the demurrer states that even if everything in the complaint were true, the complaint would lack substance because it fails to set out a copy of the note, and it should therefore be dismissed. Ordinarily there is no need to cite much in the way of statutes or case law other than the authority reciting the necessity of showing the note proving the plaintiff is entitled to relief.

In a non-judicial foreclosure state such as California, foreclosure is done by a trustee without a court hearing, so the procedure is a bit trickier; but standing to foreclose can still be challenged. If the homeowner has filed for bankruptcy, the proceedings are automatically stayed, requiring the lender to bring a motion for relief from stay before going forward. The debtor can then challenge the lender’s right to the security (the house) by demanding proof of a legal or equitable interest in it.6 A homeowner facing foreclosure can also get the matter before a court without filing for bankruptcy by filing a complaint and preliminary injunction staying the proceedings pending proof of standing to foreclose. A judge would then have to rule on the merits. A complaint for declaratory relief might also be brought against the trustee, seeking to have its rights declared invalid.

Information Links

Promissory Note Discovery

Rescind Your Mortgage

Truth In Lending Act – PDF

Mortgage Forgiveness Debt Relief

Foreclosure Dismissal

RESPA ACT – Loan Regulations

Foreclosure Counseling Assistance

Foreclosure Prevention Act of 2008

Additional information from IRS of extending the program into the year 2012 with links to IRS forms and more articles with FAQ’s at midway of this page.

Direct Link to IRS for the Mortgage Forgiveness Debt Relief Act of 2007

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does that mean?
Usually, debt that is forgiven or canceled by a lender must be included as income on your tax return and is taxable. The Mortgage Forgiveness Debt Relief Act of 2007 allows you to exclude certain canceled debt on your principal residence from income.

Does the Mortgage Forgiveness Debt Relief Act of 2007 apply to all forgiven or canceled debts?
No, the Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.

What about refinanced homes?
Debt used to refinance your home qualifies for this exclusion, but only up to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified.

Does this provision apply for the 2007 tax year only?
It applies to qualified debt forgiven in 2007, 2008 or 2009.

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and the Form 982 must be attached to your tax return.

Do I have to complete the entire Form 982?
Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.

Where can I get this form?
You can download the form at IRS.gov, or call 1-800-829-3676. If you call to order, please allow 7-10 days for delivery.

How do I know or find out how much was forgiven?
Your lender should send a Form 1099-C, Cancellation of Debt, by January 31, 2008. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.

Can I exclude debt forgiven on my second home, credit card or car loans?
Not under this provision. Only canceled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes qualifies for this exclusion.

If part of the forgiven debt doesn’t qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion under a different provision?
Yes. The forgiven debt may qualify under the “insolvency” exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent. A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982.

Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?
There is no dollar limit if the principal balance of the loan was less than $2 million ($1 million if married filing separately for the tax year) at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982, page 4.

Is there anything else I need to know before filing?
Yes. Because the Mortgage Forgiveness Debt Relief Act of 2007 was passed so late in the year, the software systems used by tax preparers and at the Internal Revenue Service need to be updated to accept the revised Form 982. The IRS expects to be able to process the new Form 982 electronically on March 3, 2008.

ADDITIONAL INFORMATION FROM IRS FOR THE YEAR 2008 – 2012 EXTENSION:

DIRECT LINK TO IRS ARTICLE

Updated with FAQs at bottom — Feb. 28, 2008
Updated with new link — Dec. 11, 2008

IR-2008-17, Feb. 12, 2008

WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on this Web site.

“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”

The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.

The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).

The debt must have been used to buy, build or substantially improve the taxpayer’s principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.

Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.

The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).

Note: Legislation enacted in October 2008 extended this relief through 2012. Thus this relief now applies to debt forgiven in calendar years 2007 through 2012.

* Frequently asked questions on the Mortgage Forgiveness Debt Relief Act
* Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness
* 1099-C
* Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonment

Violations of the Truth in Lending Act (Regulation Z) have proven to be very effective defenses for homeowners currently facing the prospect of a mortgage loan foreclosure, literally stopped the foreclosure action from continuing forward, once the findings of violations of either HOEPA or Truth in Lending have been found.

Improper calculations of finance charges directly related to the Truth in Lending statement of (TIL) have been found in over 80% of mortgage loans originated by banks and mortgage lenders over the last 5 years, creating huge liability for banks and mortgage lenders to refund ALL of the finance charges and other loan costs associated with the mortgage loan. In addition, the mortgage loan itself could be completely rescinded, leaving a ZERO mortgage balance owed by the homeowner!

However, it does not end there. Violations of both Regulation Z (Truth in Lending) could yield additional penalties to the bank or mortgage lender, including:

*Requiring the bank or mortgage lender to refund ALL sums paid over the life of the mortgage loan

*Reimbursement of all court costs and legal fees

*Triple damages may be awarded to the homeowner if litigated in court.

The violations of Truth in Lending are quite severe, as many of our nation’s top banks and mortgage-lending companies are finding. For the tens of thousands of homeowners who fell victim to Predatory Lending by unscrupulous mortgage brokers and loan officers, this news could not have come at a better time.

For a mortgage loan to be considered rescind able under Federal law, a borrower must demonstrate:

*The mortgage loan was secured by a principal dwelling of the person for whom the credit was extended.

*The loan was not used to purchase an existing home or construct a new home.

*The mortgage loan was a refinance of a previous loan either: 1) held by a different mortgage lender than the original lender, or 2) the borrower refinanced with the original lender and took cash out of the subject property.

*The loan was closed less than three (3) years ago.

*AND one of the following applies:

-The loan is currently in foreclosure and any mortgage broker fee was not included in the finance charge

-The loan is currently in foreclosure and the finance charge was understated by more than $35

-A material disclosure was not provided to the borrower, including the disclosure of the correct:

*APR (Annual Percentage Rate)

*Finance Charge

*Total of Payments

*Payment Schedule

*Existence of a variable rate feature, if applicable.

*Information with respect to the notice of Right to Rescind.

-The loan is not in foreclosure AND the finance charge exceeds .50% of the mortgage loan amount or $100, whichever is greater.

Information Links

Promissory Note Discovery

Rescind Your Mortgage

Truth In Lending Act – PDF

Mortgage Forgiveness Debt Relief

Foreclosure Dismissal

RESPA ACT – Loan Regulations

Foreclosure Counseling Assistance

Foreclosure Prevention Act of 2008