There are both Federal and State income tax issues that come into play whenever there is any kind of cancellation of debt. We see this cancellation of debt situation happening most often with a loan modification, short sale, foreclosure, or a charge off. New laws have been enacted to exclude forgiven qualified principal residence indebtedness […]
The Effect of Bankruptcy and Foreclosure on Your Credit Score
Like most things in life, the higher one climbs, the greater the potential fall. Sadly, this is also true with one’s credit score. This article at MyFICO.com, the company responsible for creating the most widely used algorithm to calculate ones FICO credit score, makes the point well. It uses a snapshot of two different credit […]
Bodies of Water, Bodies of Law: Maritime Law Today
As might be expected from the name, maritime law governs maritime questions and offenses. Some of the matters it deals with include marine commerce, marine navigation, shipping, and the transportation of goods and passengers by sea. In the United States, federal courts have original jurisdiction, but many maritime cases can also be heard in state […]
The Home Equity Sales Contract Act: What It Means to Sellers (Part 2)
The Home Equity Sales Contract Act provides provisions regarding “representatives” of purchasers as well. If the equity purchaser wishes to have a “representative” in the transaction, the representative must provide the equity seller proof and a statement that he or she has a valid and current California Real Estate Sales License. The representative’s failure to […]
The Home Equity Sales Act: What it Means to Sellers (Part 1 of 2)
For a number of reasons, it is becoming increasingly more attractive to potential homebuyers to purchase pre-foreclosure property. In order to gain the most protections, the optimal time for buyers to do is during the time period after the foreclosure process has began but before the foreclosure sale has taken place. Doing so allots buyers […]
All-Inclusive Deed of Trust: What is it, and should you get one?
An all-inclusive deed of trust (AITD) is employed when there is a mortgage that includes in its balance an underlying mortgage. This scenario happens when a preexisting loan is absorbed into a new loan made by a property’s seller: rather than having two distinct, separate mortgages, the “wraparound” mortgage includes both. These loans are financed […]
An Alternative to Car Insurance: Surety Bonds
The California Department of Motor Vehicles requires drivers to have what it calls “financial responsibility” on any vehicles they are operating or parking on California roads. Most drivers fulfill this requirement through a motor vehicle liability insurance policy, but there are other types of qualifying responsibility that qualify. One of these options is to secure […]
Everything You Need to Know About The 341 Meeting
If you file for bankruptcy, you will be required to attend a meeting of creditors. This is also commonly referred to as the 341 meeting, named after the section of the bankruptcy code which requires it. This meeting is mean to ensure that you have properly and honestly represented your assets, income and debts in […]
A Brief Introduction to California Bankruptcy Laws
While bankruptcy filing is all subject to federal jurisdiction, there are several laws unique to the state of California that its residents should be aware of when choosing to file bankruptcy there. The state of California has four different bankruptcy districts: Northern District (based in San Francisco) Central District (based in Los Angeles) Southern District […]
VA-HAMP: Another Loan Modification Option for Veterans
Good news for veterans who have financed their home loans through the Department of Veteran Affairs: the department has extended the federal HAMP program to apply to Veteran’s Affairs (VA)-insured mortgages through implementing a modification program under HAMP terms. Released on January 8, 2010, the document “Circular 26-10-02” introduces the instructions for modifying VA-guaranteed home […]
