Upcoming Foreclosures

Who exactly qualifies for the Mortgage Forgiveness Debt Relief Act of 2007?

I am asking because our house is $100K less then what we owe and our lender doesn't want to lock our rate which resets in August, so we are thinking of foreclosure right now since it makes no sence to make 4 more payments if at the end we are not going to be able to afford the payments and still end up in foreclosure but we are affraid of the consequences which involve taxes and all that government laws... All of this is so stressful help please... How can we find out if we qualify for it? Thank you for your time...

Public Comments

1. To be sure, go to the IRS website ar www.irs.gov and click on the toolbar button labeled 'Individuals', then scroll down to mortgage debt forgiveness. It will describe the people who are eligible for this. In a nutshell, it sounds like you are. Try to work with your lender on a short sale first before you simply mail in the keys. Also, there may be some benefit to waiting to the last minute. Rep Barney Frank and his housing committee anounced a plan today to help the housing market. Part of that plan is a requirement that mortgage lenders write down part of loan balances rather than forcing the foreclosure. I don't know the details and it's not law yet, but this sounds like it is being proposed for exactly your situation. Your lender may be asked to lower the principal balance without putting you in the street. Hang in there and keep the faith. Things might actually get alot better for you by the time you are ready adjust. Feel free to contact me if you have any questions, or I can help.
2. Everyone can qualify for a loan workout if it makes sense, there are disposable income requirements that banks look for that it's impossible for the average consumer to know. A loss mitigation consultant can help you to prepare the necessary "script" to re attempt to get an approval for a modification and keep the home. To be sure foreclosure is a slippery slope, you can end up holding a ton of debt without the original collateral to back it up and never pay it off, not to mention the costs you'll deal concerning the rest of your credit accounts with having a FORECLOSURE on your credit report for the next 7 years. I wish I could tell you to e-mail me your address, lender name and loan balances so I could elaborate more... but Yahoo frowns on that. I'm sure you can read between the lines here...