Mortgage payoff on steroids

Mortgage payoff on steroids

When Stockton resident Kevin Byrd refinanced his mortgage a couple of years ago, he figured he’d need the full 30 years to pay off more than $300,000 in debt.

Now he expects to get it done in just 10 years. Or less.

Byrd, 50, is employing a system called an accelerated mortgage plan that essentially uses a line of credit to pay down his home loan in record time.

It’s not for everyone. But for those with plenty of financial discipline — and as much as $3,500 to shell out for a special computer program — this might be something to consider.

Foreclosure crisis hits home for Ann Arbor area residents

Foreclosure crisis hits home for Ann Arbor area residents

Any day now, an eviction notice will be posted on the front door of Martha Behnke’s Pittsfield Township home.

“It’s very scary,” she said. “I don’t know what to do next. I’m like a top that’s spinning, and when I stop, God only knows where I’ll be.”

Last winter, after she and her husband, Bill, were unable to pay their mortgage for four consecutive months, and a notice of foreclosure was placed in a newspaper for four successive weeks, their house was sold at a sheriff’s sale to a Texas bank for $218,400.

Though they were given 12 months to redeem their property, there was no way to come up with the $330,000 they owe two mortgage companies.

Call this home loan the last resort, not a ticket to a resort

Call this home loan the last resort, not a ticket to a resort

Seniors don’t have to look farther than the TV or their own mailboxes to find somebody selling a way to dig out of trouble, or foreclosure, with a reverse mortgage.

And the marketing is going to get more intense.

Big players like Livonia-based Quicken Loans are moving into reverse mortgages as more baby boomers turn 62 and qualify for these complex home loans.

One service sells hot leads of seniors who are late with their mortgage payments. So if you’re a senior, brace yourself, some lender will tell you that your retirement nest egg includes the nest itself.

Forgiven debt still might haunt you as taxable income

Forgiven debt still might haunt you as taxable income

Canceled debt in many cases is considered income — taxable income. And if a creditor forgives thousands of dollars of debt, you can find yourself whacked by a big tax bill.

And that is not the only consequence. Forgiven debt can raise your income to the point where you’re ineligible for certain credits and tax deductions, or part of your Social Security benefits is taxed, says Bob Scharin, a senior tax analyst with Thomson Tax & Accounting.

Of course, having a creditor absolve you of debt can be a financial lifesaver. And not all canceled debt is taxable. Congress last year, in response to the subprime mortgage mess, temporarily exempted a sizable amount of forgiven mortgage debt from taxes. Also, you won’t be taxed on canceled debt in cases of bankruptcy or insolvency.

Law Firms Cash In On Foreclosures

Law Firms Cash In On Foreclosures

Their work can be so repetitive that some are known, disparagingly or not, as “foreclosure mills.” But the niche field of foreclosure law is profiting enormously from the boom in Florida home foreclosures and is on a hiring spree.

One Tampa law firm, Florida Default Law Group, filed more than 400 foreclosure lawsuits in Hillsborough County in February alone, according to a Tampa Tribune review of Hillsborough County Clerk of Court records.

Because many law firms file foreclosures across Florida, the biggest firms’ monthly foreclosure caseload can grow to a thousand or more, with each case carrying a potential attorney fee of up to $1,200 – although it’s not clear what the firms’ profit margin is.

To keep up with the workload, foreclosure specialists have ramped up their hiring. One foreclosure lawyer, Jim Albertelli of Tampa-based Albertelli Law, estimated that the biggest firms in Florida have grown to as many as 200 clerks, paralegals, lawyers and other staff, based on their case volume.

Law Firms Cash In On Foreclosures

Law Firms Cash In On Foreclosures

Their work can be so repetitive that some are known, disparagingly or not, as “foreclosure mills.” But the niche field of foreclosure law is profiting enormously from the boom in Florida home foreclosures and is on a hiring spree.

One Tampa law firm, Florida Default Law Group, filed more than 400 foreclosure lawsuits in Hillsborough County in February alone, according to a Tampa Tribune review of Hillsborough County Clerk of Court records.

Because many law firms file foreclosures across Florida, the biggest firms’ monthly foreclosure caseload can grow to a thousand or more, with each case carrying a potential attorney fee of up to $1,200 – although it’s not clear what the firms’ profit margin is.

To keep up with the workload, foreclosure specialists have ramped up their hiring. One foreclosure lawyer, Jim Albertelli of Tampa-based Albertelli Law, estimated that the biggest firms in Florida have grown to as many as 200 clerks, paralegals, lawyers and other staff, based on their case volume.