THE TAX MAN COMETH- ATTORNEYS NEEDED

Daniel has this to say also with regards to a disclaimer:

Loraine :I should have added this disclaimer:

However I still think that anyone effected by this mess should not have to deal with this !( from one who is tired of government messes local, state and national lately as the ripple effect just keeps copming right back to my front door- Loraine

On Dec. 20, 2007, President George W. Bush announced the signing of the The Mortgage Forgiveness Debt Relief Act of 2007, so nearly all of those currently facing a short sale on their primary residence won’t be facing this dilemma.

Unfortunately, the seller mentioned in my blog entry does not benefit from that law, because the house in question was sold in 2006, and it’s not until now that the IRS is notifying the seller that a form 1099 exists that the seller was unaware, of with a dollar amount that the seller vehemently disputes, that would seem to indicate that the seller owes much more in taxes for the 2006 calendar year, just so the predatory lender could fraudulently write off half the mortgage amount on their own taxes.

For all I know, fraudulent lenders could still be writing off far more than they should.

Also, other creditors (not mortgage lenders) are still able to submit a 1099 to impute income to a debtor for debts that were charged off (and hopefully, they’ll be diligent to send a 1099 to the debtor at the same time the W-2’s are arriving, unlike the mortgage lender in my article), as The Mortgage Forgiveness Debt Relief Act of 2007 only applies to mortgage debts.

Again, current home sellers facing a short sale need not fear the tax man, but the seller in my article IS having to do battle with the tax man.

Daniel has brought into the light another disturbing fact of this sub prime mess

What would you think if half the amount of your mortgage were added to your income? Think about the tax bracket it would put you in, and then ask yourself, would you be able to cough up the taxes owed? In the seller’s case, even with the tax bill broken down into monthly installments that the IRS will permit, the 2006 tax payments would become the largest single expenditure in the seller’s monthly budget.

BUYER BEWARE!!!!!!!! Check out the full story :
http://buckeyerino.wordpress.com/2008/05/08/sub-prime-lender-as-tax-evader/#comment-91