Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems. Here are the average hit your credit will take: 30 days late: 40 – 110 points 90 days late: 70 – 135 points Foreclosure, short sale or deed-in-lieu: 85 – 160 Bankruptcy: [...]
California won’t tax forgiven home debt
Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. SB 401 generally aligns California’s treatment of taxes on forgiven mortgage debt with that of federal law. For debt forgiven on a loan secured by a “qualified [...]
New foreclosure alternatives program
The U.S. Dept. of the Treasury last week announced the Home Affordable Foreclosure Alternatives Program (HAFA), which provides financial incentives to servicers, borrowers, and investors for a closed short sale or a deed-in-lieu (DIL). The HAFA program simplifies and encourages short sale and DIL options by: Allowing pre-approved short sale terms before a property is [...]
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