Credit and Debt Blog
A Service of Debtors Unite, Inc.
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On Thursday, the House passed the Mortgage Reform and Predatory Lending Act of 2007. The House voted 291 to 127 to approve legislation that would curb common abusive practices in the subprime mortgage market. These abuses are blamed for massive foreclosures.
The bill still requires Senate approval. Some consumer advocates, including the Center for Responsible Lending, are calling on the Senate to strengthen the bill. (more…)
The IRS views forgiven debt as a form of income. We know that debt settlement can cause your taxes to go up. Did you know that foreclosure works the same way?
That’s right. If your foreclosed property sells for less than the mortgage balance, you have pay taxes on the difference. Some foreclosed properties are selling for tens of thousands of dollars below what is owed, meaning tax bills could reach several thousands of dollars extra. One proposed bill would change that though. (more…)
Congress may soon vote on H.R. 3609, which is titled the Emergency Ownership and Mortgage Equity Protection Act. The idea is to provide bankruptcy judges the authority to modify mortgage loans to help families afford the payments.
The bill proposes allowing distressed homeowners to include their mortgage in a Chapter 13 bankruptcy filing. There are some other important proposed changes also. (more…)
