Mortgage rot can spread to other areas as suits begin

A great article by the Economist says, in part, “If you put all that together, it is easy to see why an economy burdened by debt and a housing bust is in extra danger. Starved of funds and facing not just losses but lawsuits (see article), the banks are hoarding liquidity and capital. That can …

Forgiven Mortgage Debt Not Taxable by Internal Revenue Service

Thursday, December 20, 2007 President Bush signed a measure to provide financial relief for financially strapped homeowners facing foreclosure or in bankruptcy. The bill gives a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiating a loan. No taxes would be owed on the value of any debt …

Lobbyists and special interests buy our government

The mortgage crisis of 2007 worsens and threatens to tip the economy into a recession. Many are asking where was Washington? Washington was in the same place as always, the question regarding what they were doing, and why, are the issues at the heart of the matter. Of greater interest to me are political contributions …

Epidemic of loan restructure and fake refinance scams for mortgage holders

In the list of top 10 scams for 2007, Foreclosure rescue scams came in at number 7. As if people who fell behind on mortgage payments didn’t have enough troubles, an increasing number became victims of foreclosure rescue frauds. In the list of top 10 scams for 2007, Foreclosure rescue scams came in at #7. …

The Fed’s Contribution to Mortgage Blues

According to Alan Greenspan the housing bubble had far less to do with the Fed¬ís policy on interest rates than on a global surplus in savings that drove down interest rates and pushed up housing prices in countries around the world. Many Fed officials counted on the housing boom to prop up the economy after …