Terry Hammill recently made a guest appearance on Real Talk Hillcrest Live with Vinny Enriquez.  Terry discusses the reality of today’s real estate market and short sales, and how this affects the homeowner.  What is a Short Sale?  What is a Hardship? What if I have a Reverse Mortgage? These questions and many more are answered in this discussion with Vinny Enriquez on Real Talk Hillcrest.

Expired Tax Relief Could Increase Pressure on Troubled Borrowers

The Mortgage Forgiveness Debt Relief Act’s (MFDRA) expiration may lead to negative pressure on liquidation timelines and recoveries for legacy U.S. mortgage investors if the act is not renewed, according to Fitch Ratings.  Recently expired as of January 1, the MFDRA was signed into law December 2007 with the purpose of aiding underwater mortgage holders. Fitch Ratings projects a negative effect from the MFDRA’s expiration.  The act was designed to provide tax relief by allowing certain borrowers to exclude mortgage debt that was cancelled or forgiven by the lender through a foreclosure, short sale, or loan modification—debt that would normally be considered income for tax purposes.  Without this relief, Fitch expects a decline in the volume of short sales and principal forgiveness modifications. The agency cites three reasons for its projection……

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