With foreclosure filings by the number, there is probably no better time than now to get out of debt and strengthen your financial position. How? By paying off your mortgage. By obtaining mortgage debt forgiveness, you are entitled to legal relief from debt that typically results in the relief of tens of thousands of dollars.
This is a no-brainer, right? As easy as it is to understand, few borrowers understand that they are being given an extremely rare, once-in-a-lifetime chance to develop an important financial platform and establish themselves well into the 21st century.
Understand that, for the very best chance of loan forgiveness, you first must determine if you qualify. You realize that you cannot meet all the guidelines without knowing if you qualify for the Mortgage Forgiveness Debt Relief Act of 2007.
Here’s the first key element: to qualify for the Mortgage Forgiveness Debt Relief Act of 2007, you must demonstrate that the amount of your mortgage loan that was used to buy, build, or substantially improve your home between January 1, 2007, and June 30, 2009, was less than the annual gross income you obtained.
If you meet that definition, here are the second and third key elements that you must demonstrate:
- The amount of your first mortgage debt that was forgiven or canceled must be $2 million or more.
- The amount of your second mortgage debt that was forgiven or canceled must be $1 million or more.
- Debt canceled or forgiven must have been a legitimate financial hardship that you could prove was not your fault.
If mortgage debt is forgiven or canceled, it’s literally akin to winning the lottery – would-you-d Belief, it’s got real value. Nothing short of winning the lottery, of course, but winning the lottery is without its challenges.
As a result, why on earth would we take on the unknown? Then, my favorite news story from 2006:
A Chicago woman who was shoveling outskirts of her home on receiving notification she’d been awarded the $250,000 she needed to keep her from foreclosure says the mortgage she signed into was “a piece of garbage – 99 cents on the dollar!”
That woman was on a fixed payment that she could no longer afford, and understandably felt she was entitled to a refund of the amount of money she would have paid had she not been saddled with desire.
Nevertheless, she says she is pleased he decided to ignore the rest of her total $800 costs because “the only way I define it is I paid the mortgage.”
This example is, of course, a clear indication that many legal and financial experts are still “eye to eye” on the mortgage mess – many of the lost signatures on the lawsuit are hard to verify, and we’re yet to see remorse from either party. For now, we keep saying “look what happened to stability and family values!”
This recession caused a great deal of anger and hardship that included many families forced out into the cold. Unfortunately, this also led to a great deal of hurt and disappointment on the part of the financial industry, lenders, mortgage brokers, and other professionals.
I hope we see a bright light at the end of the tunnel for every one of these professionals.
One point for all those who deem mortgage debt relief a scam: Not all loan modification companies are in cahoots with scam artists.
One direct answer to the question “do I verify my claims?” is: DO IT!