06.27.07
Posted in Education, Money and Finance at 9:08 pm by Jeanne
The phone rings. As you hear the caller, a feeling of dread grows in the pit of your stomach. A young “representative” says he needs to speak with you about your child. The adrenalin builds.
The voice says your family member has been seriously injured and brought to the hospital. In order to begin treatment, paperwork needs to be completed immediately, and personal information like social security numbers and date of birth need to be verified. Money and/or insurance information also needs to be obtained so that they can proceed quickly.
Wait a second! What’s wrong with this picture? First of all, WHO are you talking to? What information are they asking for? This kind of scam is a form of phishing. The thief makes up a story to scare you into giving up one of your most valuable assets - your personal information. Think first. Hang up if anyone on the phone starts asking for that information. He or she is a criminal trying to steal your identity.
The bottom line is that lwe all need to learn NOT to give out any personal information over the phone when contacted by unknown and unverified individuals. Be alert, be aware and be safe.
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06.15.07
Posted in Education, Money and Finance, Mortgage Problems at 1:22 pm by Jeanne
Did you know that deeding your property back to the Lender instead of allowing foreclosure can cost you! Under Federal Law, Lenders who accept less than the full remaining balance on the loan (including late fees, interest and other chargable items) must file a 1099-C (as opposed to the 1099-S.) The 1099-C shows any concessions made by the Lender, and tells the IRS the concessions are TAXABLE INCOME.
For example, say your Mother took out an exotic loan to help pay medical bills and refinance the house. The loan is an adjustable rate for $312.250. -(125% of the then current value of $250.000.) The loan was at 5% interest two years ago and is now at 9%. She was assured that housing markets would continue to rise.
Now she finds herself unable to make the payments, and the current house value is estimated at $242,000. If the Lender is willing to accept $242,000. for a deed in lieu of foreclosure, knowing that is the best they can do, it must file a 1099-C with the IRS. The IRS will then show that Mother has received TAXABLE INCOME in the amount of $70,250. OUCH! As unfair as it seems, she now has another problem, one bigger than just losing her home.
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