Real Estate
Increased Foreclosure Protection for Service Members
Public Act 138 (Act) signed by Governor Jennifer Granholm on May 21, 2008 aims to provide additional foreclosure protection for returning military service members. The Act issues a “stay on mortgage foreclosure proceedings for six months after the end of the individual’s military service.” The stay is intended to give service members additional time to […]
Prediction: The bottom of the real estate market
Mortgage foreclosures increased 57% in March 2008 as compared to March 2007. In just a couple months, the final significant wave of adjustable rate mortgages (ARMs) will readjust (in May - June 2008). This will likely be followed by a crest in defaults anywhere from 3 to 6 months after the resets occur […]
Mortgage Securitization Explained
Securitization is the process of converting assets, in this case mortgages, into negotiable instruments which can be sold in financial markets. The proceeds from the sale of the securitized assets then provide additional capital for lending institutions to finance new loans. Securitization has provided a new source of funding in many industries for assets that […]
Tax Relief for Borrowers Facing Foreclosure
Normally, if a borrower has a debt discharged or otherwise forgiven without adequate consideration, the IRS will consider this a taxable event. The borrower will have income - at the time of foreclosure - if the total amount of the debt owed is greater than fair market value of the property. A short […]
Candidates and Subprime Reforms
The 2008 presidential candidates have now voiced their opinions. Clinton and Obama both want drastic overhauls and billions of dollars to head back to mortgagors whereas McCain prefers a more hands-off approach.
Their proposed policies are becoming increasingly important to voters and industry lobbyists with each day that the mortgage crisis worsens. […]
