Loan Modification Info

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Short Sale/Loan Modification info

A lot of homeowners are wondering how a short sale affects their credit score, or how long after a foreclosure they can buy another home.  I've gathered a bunch of links with information on these issues.



NEW LAW!!!! No More Advance Fees Allowed for Loan Modifications

This new law, which went into effect on October 11, 2009 (and expires January 1, 2013), prohibits any person, including licensed real estate brokers and attorneys who negotiate, attempt to negotiate, arrange, attempt to arrange, or otherwise offer to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower related to mortgages and deeds of trust  secured by residential real property containing 1-4 dwelling units to do any of the following:

1.  Claim, demand, charge, collect, or receive any compensation until after the licensee has fully performed each and every service the licensee contracted to perform or represented that he/she/it would perform.
     
   

2.  Take any wage assignment, any lien of any type on real or personal property, or any other security to secure the payment of compensation.


3.  Take any power of attorney from the borrower for any purpose.  

If you are approached by a person or company offering to modify your loan to save your house from foreclosure and they charge you a fee up front for their services they are in violation of this law.




IRS information on cancellation of debt tax


http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Top 10 Myths regarding short sales


http://www.cdpe.com/short-sale-myths.html

How long before I can buy a home after a foreclosure or short sale?
http://homebuying.about.com/od/foreclosures/f/071008_BuyAgain.htm

What's a non-recourse loan?


http://banking.about.com/od/loans/a/recourseloan.htm