Bank of America Mortgage to Lease program

Bank of America has announced a new pilot program that is suppose to help default home owners stay in their homes. This program has not been launched in Columbia SC yet. Bank of America's innovative idea is designed to help foreclosed property by turning a homeowner into a renter and eventually sell the property to an investor as an appealing profit producing package. This is a highly innovative idea. They offer  home owners a chance to sign a "deed-in-lieu" in foreclosure, and stay in their homes at a reduced rental rate for one year with a possibility of renewing the lease at the rate the bank determines. Giving the bank a tenant to maintain the property and time to hope that the market rebounds and they can get more equity for the property.

To read the full article click below. 

www.cnbc.com/id/46829774/Bank_of_America_Getting_Into_the_Landlord_Business

Mortgage Debt Relief Act of 2007 is set to expire at the end of 2012. If your are struggling you may want to act now.

Tax Tips from irs.gov

Canceled debt is normally taxable to you, but there are exceptions. One of those exceptions is available to homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012.

The IRS would like you to know these 10 facts about Mortgage Debt Forgiveness:

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.

6. Proceeds of refinanced debt used for other purposes — for example, to pay off credit card debt — do not qualify for the exclusion.

7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions — such as insolvency — may be applicable. IRS Form 982 provides more details about these provisions.

9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed

10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit www.irs.gov. IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments, is also an excellent resource.