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Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 5646
Experience:  28 years of experience in general practice, real estate law and estate law.
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Ocwen Mortgage foreclosed on my home, but did not contact

Customer Question

Ocwen Mortgage foreclosed on my home, but did not contact me. For 5 years I was trying to get a loan modification. Then I received letter cancellation of Debt. I thought that meant I own my home. Then a year later a Sheriff show up and my home to evict me. I then went down to Atlanta Court, I wrote a letter to the judge. I then received a hearing date. Once in court I was not able to tell my side of the story, the judge ruled in favor of the bank U.S Bank National I file an Appeal following get the judge accept my indigent status to waive court cost. That currently were I am now. I would like a lawyer to go with me when I get an appeal date.
Submitted: 8 months ago.
Category: Real Estate Law
Expert:  LawTalk replied 8 months ago.

Good evening,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today. I am a GA licensed attorney.

This seems like a very crucial matter for you, and your questions and issues suggest that an in-depth conversation might best suit your needs. If you are interested, for an extremely nominal charge I can offer you a private phone conference as opposed to continuing in this question and answer thread. Let me know if you don't want a call and I will be happy continue here with an answer for you.

Either way, whether I call you or not, in order to give you a clear and concise answer, I will need some additional information about the circumstances, please.

1. Are you are saying that over ALL the years of your financial problems and not paying the mortgage on time or consistently, that you never once received a notice of default from the lender?

2. How long has it been since you resided in the home that was foreclosed on?

3. Did you seriously believed that when you didn't pay the mortgage and the lender wrote the debt off as a bad debt for tax purposes that they were giving up, and giving you the property, free and clear?

Doug

Customer: replied 8 months ago.
I would like to find a way to keep my home. I received no foreclose notice from Ocwen I was told that I didn't have to make mortgage payment while I was in the loan modification, which I stated in for 5 years. During that time I kept critical contact with Ocwen, faxing calling certified mail etc. Also, for the last years I have been switched to 5 mortgage companies. With each company I went through the same process. I would like to sue Ocwen and National Bank of the South who now own my home.
What does a cancellation of debt mean. I received it from Ocwen May 2014, during the time they lost a sue for stealing people's home, I should have been included in that class action sue. I filed an appeal against the foreclose in Nov. 2015 that my current status. Please help I have 2 businesses in my home. ***-***-**** **. Erdine **** ****
Expert:  LawTalk replied 8 months ago.

I am unable to further assist you in this matter, and I am going to opt out of your question and open this up for other professionals.

Your question is being placed back in the question list for other professionals to see, and to respond to. You do not have to stay online for the question to be active. Should another professional pick it up, you should be alerted by email unless you actively disable this feature.

There is no need for you to reply at this time as this may "lock" your question back to me, thus inadvertently delaying other professionals' access to it.

I apologize for any inconvenience and wish you well in your future.

Doug

Expert:  Attyadvisor replied 8 months ago.

Welcome and thank you for your question. I am a different attorney. I know the terminology can be confusing. I just want to clarify a some information. Am I correct that your home was foreclosed during the modification period? Are you still in the home? What I am trying to ascertain is whether the home was sold after the foreclosure or if the lender is still in the process of selling the property?

Expert:  Attyadvisor replied 8 months ago.

As far as cancelled debt is concerned that occurs when a property is sold in a short sale or foreclosed. * "Ordinarily, the debt that a homeowner sheds in a short sale or foreclosure is treated as cancellation of debt income, which is reported on Form 1099-C and which is taxable."

"Under that law, homeowners who sell a home that's their primary residence in a short sale or who lose their home in foreclosure don't have to report as income and pay tax on up to $2 million ($1 million if filing separately) of the debt that is cancelled as a result of the transaction."

This exclusion of up to $2 million in cancelled primary residence debt is set to expire at year's end, so folks who are seriously underwater on their homes and are considering a short sale should act this year (although the law could well be extended, as it was in 2012).

  • What to do with your tax refund
  • What triggers an IRS tax audit
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But if you negotiated with a creditor to settle a debt -- say you agreed to pay a reduced balance on a delinquent credit card account in exchange for the creditor discharging the remainder of the balance -- then you would have received a Form 1099-C Cancellation of Debt, which reports the amount of the discharged debt as income to you. Creditors who forgive $600 or more are required to file Form 1099-C with the IRS.

As a result of some new reporting requirements, there was a significant increase in cancellation of debt reporting. Last year, an estimated 6.3 million 1099-C forms reporting cancellation of debt income were sent out to taxpayers. Some of those were sent to people for old debts that were discharged, and they never thought they would hear about again.

So if you received a Form 1099-C, don't ignore it. Doing so is a sure-fire way to get contacted by the IRS. The reason is because the creditor that sent this to you also sent a copy to the IRS. If you haven't listed the income on your tax return, you could get a tax bill or a notice of deficiency from the IRS. This could end up costing you more in IRS interest and penalties.

According to the IRS, if a debt is cancelled or discharged you must include the cancelled amount in your gross income and pay taxes on that "phantom income." For most folks, paying tax on debt they cannot afford to pay is a problem.

If you've received a Form 1099-C for cancellation of debt income, the first thing you need to do is to figure out whether you qualify for an exclusion or exception. If you don't get this right, you may pay more in taxes than you have to. Here are the five types of cancelled debt that qualifies to be excluded from gross income:

1. Cancellation of qualified principal residence indebtedness

2. Debt cancelled in a Title 11 bankruptcy case

3. Debt cancelled due to insolvency

4. Cancellation of qualified farm indebtedness

5. Cancellation of qualified real property business indebtedness

One of the most overlooked exclusions is the debt cancelled due to insolvency. Here's how it works.

Say you negotiated to settle a credit card debt for $2,500, where you originally owed $5,500. In this case you would receive a Form 1099-C with cancellation of debt income for $2,500, which is the amount of the debt discharged.

Let's assume that immediately before that sum was discharged, the total value of your assets was $10,000 and the total amount of your debts was $15,000. In this case, your insolvency amount (the amount that your debts exceeded your assets) was $5,000.

Since your insolvency was greater than the amount of the discharged debt, the cancellation of debt income is excluded from your gross income. (For more information, see IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions). Also attach a completed Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness to your tax return.

I also strongly suggest that people seek advice from a qualified tax adviser before filing a tax return with these forms."

*http://www.cbsnews.com/news/what-taxpayers-should-know-about-cancelled-debt/

Did you receive a 1099C?

Expert:  Attyadvisor replied 8 months ago.

The cfpb has been put in place to deal with the wrongful foreclosures and numerous assignments and games the lender's play to avoid loan modification and go forward with foreclosures. My suggestion would to file a complaint with them immediately as their role is to aid consumers who have wrongfully foreclosed an dealt with mortgage fraud.

This is a link for the complaint form http://help.consumerfinance.gov/app/mortgage/ask Even if an attorney is unwilling to assist the Consumer Financial Protection Bureau is mandated to help you.

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you. If you would be kind enough to rate my service so I will receive credit for my work I would appreciate it. Thank you for using JA! We appreciate your business.

Expert:  Attyadvisor replied 8 months ago.

The cfpb has been put in place to deal with the wrongful foreclosures and numerous assignments and games the lender's play to avoid loan modification and go forward with foreclosures. My suggestion would to file a complaint with them immediately as their role is to aid consumers who have wrongfully foreclosed an dealt with mortgage fraud.

This is a link for the complaint form http://help.consumerfinance.gov/app/mortgage/ask Even if an attorney is unwilling to assist the Consumer Financial Protection Bureau is mandated to help you.

CFPB also can provide you with information on class action settlements at http://nationalocwensettlement.com/

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you. If you would be kind enough to rate my service so I will receive credit for my work I would appreciate it. Thank you for using JA! We appreciate your business.

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