New Florida Law Curtails Mortgage Foreclosure Defense By Bankruptcy Debtors

Jon Alper Bankruptcy, Mortgage Foreclosure

During the mortgage crises of 2008 through 2010 many of my clients were desparate to hold on to their homes that were under water and facing foreclosure. Some attorneys began to specialize in the area of foreclosure defense. These attorneys were skilled and delaying bank foreclosure actions during which time the homeowner occupied their home without making mortgage payments. People …

Lender’s Release of Personal Guarantee Does Not Impute Taxable Income

Jon Alper Mortgage Foreclosure

I recently wrote a blog post about avoiding imputed income from debt forgiveness following a foreclosure against a business owned property. I suggested that a business that is organized as a C corporation would not pass through imputed income to its individual owners, but I stated I was unsure if there would be personal income when an individual corporation owner …

C Corporation Planning May Avoid Imputed Income From Mortgage Debt Forgiveness

Jon Alper Mortgage Foreclosure

Often, the biggest problem with mortgage deficiency actions related to foreclosed investment property is the possibility of imputed income from debt forgiveness. Even if the mortgage lender does not pursue collection of a deficiency judgment, or if the lender settles with the mortgagor for partial payment of the total deficiency, the lender is likely to send a 1099 tax form …

Dual Tracking Rules Prohibit Foreclosure During Mortgage Modification

Jon Alper Mortgage Foreclosure

During the height of the real estate recession many homeowners told me stories about how they were surprised by aggressive foreclosure by bank attorneys when they thought they were moving toward mortgage relief settlements with the bank’s representatives. That bank practice is known as “dual tracking”; that is, banks engage in a mitigation track at the same time their authorizing …

Avoiding Tax Liability in Settlement of Mortgage Debt

Jon Alper Mortgage Foreclosure

I’ve written before that property owners who negotiate a waiver of deficiency judgment on property other than their homestead face potential income tax for forgiveness of debt unless they can prove they were insolvent at time of the debt waiver. I’ve also commented that some attorneys have stated they could arrange to avoid this tax trap.

Dyke O’Neal Deficiency Suits

Jon Alper Mortgage Foreclosure

As I mentioned in a recent blog post the financial firm of Dyke O’Neal has purchased a substantial amount of mortgage deficiency claims from various mortgage lenders, and the company has hired the law firm of Daniel C. Consuegra in Tampa to file numerous deficiency lawsuits. During the past few weeks many people who were sued by Dyke O’Neal for deficiency …

Uptick in Mortgage Deficiency Claims Prior to July Deadline

Jon Alper Mortgage Foreclosure

Any mortgage lender that has foreclosed on a property from the beginning of the housing recession through June 30, 2012, has until July 1, 2014 to move for a deficiency claim or their deficiency claim is forever barred. Are we about to see an avalanche of backlogged deficiency claims in the next two months?