Looking At Your Walk-Away Program Options: Is Buying Notes From The Bank Legal?

When you are faced with the imminent possibility of a foreclosure, you have to carefully evaluate your options. You cannot simply sulk and surrender to whatever negative consequences you will have to suffer due to the foreclosure of your property. You can take a look at your options at being able to save yourself from the bad credit record that you will have to endure in the years to come. While you have to accept the fact that you are going to lose your home, you have to take the necessary steps in order to ensure that you walk-away from your current financial condition with the dignity that you deserve and with as little damage as possible. As you check out the walk-away programs that are available for you, you might ask “is buying notes from the bank legal?”

These walk-away programs are not scams. Yes, they can very well undertake to purchase your mortgage notes from your bank so that you can clear out your obligations. There was a time when the only other option you can take in place of facing a foreclosure is a short sale. In a short sale, you and your bank agree to sell your property at less than what you have left on your loan balance. In such a sale, you do not necessarily free yourself from any obligations. The bank could disagree with the proposal of a short sale. Or, you might not even find a buyer for your property even at a discount. A walk-away program offers a better foreclosure solution in that when your walk-away company agrees to take over your mortgage for you, you can actually walk-away and start your life all over again, no ifs, no buts.

So, is buying notes from the bank legal? Definitely. These walk-away companies negotiate directly with your bank’s legal department to fulfill the necessary legal obligations that are required by law. There are important documentation that needs to be accomplished. You will be asked to submit a list of requirements to your walk-away company so they can prepare for their negotiations with your bank. You do not have to worry about these legalities. When the walk-away company agrees to take on your property, it takes over on your behalf. There is no reason for the bank not to agree with their offer especially as it is their best chance of getting the most out of your property.

Choosing Viable Alternatives To A Short Sale

It is a painful and stressful experience to have to let go of your home because you do not have the means to settle your mortgage. But, it is a reality that is faced by many Americans today. Reports even show that about 50% of homes in the US are underwater or are worth less than what people owe on their mortgages. These homes will most likely be subject to foreclosure proceedings. Banks are over the top with these kinds of properties. For both sides of the equation, there is nothing desirable at all about this scenario. People are actually just giving their homes up by sending in the keys even before they are due for foreclosure. They simply do not see any reason why they should even be paying more when their homes are not worth much these days. This is a separate matter altogether in as far as ethical and moral considerations are concerned. Much argument is being thrown at this particular recourse to the growing interest rates and falling real property values. For people who are already at default on their mortgages, the only other option to losing their homes to foreclosure proceedings is a short sale. This means that both the borrower and the lender agree to sell the property for an amount less than what the borrower owes. There are, however, down sides to a short sale. For these reasons, people are looking for viable alternatives to a short sale.

Contrary to popular belief, a short sale does not necessarily free you of any obligation towards your debt. As you are selling your property for less than what you owe your lender, there definitely will be an amount that will be left unsettled. Depending on your agreement with your bank, you might still be held liable for the balance left after the short sale. In other cases, the short sale might not happen before the foreclosure sale date falls due or the bank might not even agree to a short sale. One of the viable alternatives to a short sale is a walk-away program where you let another company take over your property and negotiate with your bank for the purchase of your promissory note. By doing this, you are able to let go of your property without the fuss and the stigma that is associated with foreclosure proceedings.

For more details please visit www.walkawaytoday.org

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2nd mortgages are killing short sales. Walkawaytoday.org uses their unique legal process to gain leverage over the 2nd mortgage, and thereby removes the 2nd mortgage problem

Testimonials

The best way to learn about us is to contact those that we already work with. Walkawaytoday.org works with many affiliates, all across the country who refer short sale properties to our company

Landmark Decision Promises Massive Relief for Homeowners and Trouble for Banks

as walkawaytoday.org reports, the legal environment is shifting in favor of the homeowner, and away from the banks

IRS publication 4681

when you sell to walkawaytoday.org, we purchase the mortgage note directly from the lender, thus there is no 1099C because there was no cancellation of debt – rather we purchased the debt

What NOT to do…

In order to accept your property, walkawaytoday.org requires that you submit it at LEAST 60 days prior to any foreclosure sale. The earlier the better. Failure to do will result in denial of your property

What’s coming for the housing market? Peter Schiff expounds…

Interview with our CEO, Paul Pritchard

walkawaytoday.org provides an alternative to the traditional ‘short sale’. They work wtih both Realtors and directly with property owners who want to move on from their property quickly

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The foreclosure crisis has caused millions of homes to be kept off the market. The recent ‘foreclosure moritorium’ will only compound the problem. What will happen when this inventory fluds the market??

50% of US homes are underwater…shocking report

Over 50% of us homeowners are underwater. With the stigma of foreclosures diminishing, more homeowners are making the decision to walk away, and it’s not suprising

USA Today reports short sale success rate is DISMAL

We wanted to share with you yet more proof that shows the success rate of short sales is completely dismal.  This report just came out in USA Today just a couple days ago.  If your still wasting time and effort on a short sale, you gotta see this article.  It will shock you.

CLICK HERE TO READ THE ARTICLE

Second Wave of Foreclosures coming TWICE as big as first

Did you know? Only 5-15% of short sales are successful?

Campbell communications recently reported their findings regarding the actual rate of short sale failure. It is shocking to say the least

Think the bank wants to help you avoid foreclosure??? Think again….

The Evil Banks Seek Deficiency Judgements – Fact or Fiction?

Do banks really persue deficiency judgments? If so, how can you protect yourself?

Short Sales Tax free for many borrowers. How about for you?

One of the most common questions we are asked is this: “When you ‘short sale’ my mortgage, will there be any tax consequences?” This is a good question, and we’ll answer it for you here.

In a traditional foreclosure, short sale or any scenerio where the bank takes a loss, what the bank will usually do is issue a 1099 for the ‘loss’ that the bank took. That 1099 is counted as income to you, and is subject to taxation. For example, if you owed 300k on your property, and we acquired the property from you, and settled with the bank for 200k, the bank would have taken a 100k ‘loss’. In the past the bank would send a 1099 and take a loss (banks almost NEVER persue deficiency judgements, but I’ll address that in a seperate post).

Here’s what has changed.

The Mortgage Forgiveness Debt Relief Act was introduced in Congress on September 25, 2007, and became law on December 20, 2007. This act offered relief to homeowners who would formerly owe taxes on forgiven mortgage debt after facing foreclosure. The act extends such relief for three years, applying to debts discharged in calendar year 2007 through 2009. (With the Emergency Economic Stabilization Act of 2008, this tax relief was extended another three years, covering debts discharged through calendar year 2012.)

Normally in US law when a lender decides to forgive all or a portion of a borrower’s debt and accept less, the forgiven amount is considered as income for the borrower and is liable to be taxed.

However, after the signing of the Mortgage Forgiveness Act, amendments have been made to remove such tax liability and allow the borrower and lender to work freely together to find a common solution that is beneficial to both parties. This protection is limited to primary residences

so, you’re off the hook for tax liability if it’s a primary residence. Great news!

But what if you have an investment property or 2nd home you need to get rid of?

Well, you may still be able to get off the hook for any tax consequences, but you have to be able to show that you were insolvent at the time the bank took the loss. Insolvency means that your debts exceed the value of your assets. To figure out whether or not you were insolvent, you will have to total up your assets and your debts, including the debt that was settled or written off. That’s good news for many folks who are in a foreclosure situation, or thinking about walking away from their properties.