Asian Journal- The Filipino-American Community Newspaper

TheDepartment of Treasury released on December 10, 2009, the data on the number of trial loan modification and the number of permanent loan modification under the Making Home Affordable Program of the government. There are 697,026 trial loan modifications and 31,382 permanent loan modification made by the participating lenders as of November 2009.

The reasons advanced by the banks in the slow progress of permanent loan modification are that the borrowers are slow in giving the proof of hardship and income when requested by the banks. On the other hand, the banks have the motivation to stonewall the process because they collect more fees on long term delinquency in terms of penalties and charges.

If you are encountering problems in dealing with the banks it is time to hire an attorney to represent you.

1. In general, debts forgiven on rental property are taxable. However, they may qualify as nontaxable under the insolvency exclusion of the Internal Revenue Code.

2. Short sales are a better alternative to having a foreclosure or deed in lieu of foreclosure. The effect of short sale on credit history is less severe than foreclosure or bankruptcy. A person with short sales record can buy property in one to three years after the short sales.

3. Taxpayers who intend to modify loan or short sale their house in order to eliminate debts where the loan amount is significantly higher than the value of the property should consult with an attorney doing loan modification or short sales before the Mortgage Forgiveness Relief Act expires on December 2012.

On Dec. 7, 2009, our client Ms. E was approved for a waiver of misrepresentation in the Immigration Court. She has a UScitizen mother and daughter and she has been in the USfor 17 years. In another case, on October 29, 2009, our request for waiver of misrepresentation for entering as single but actually married for our client Mr. Din Fresno, CA was approved by the Immigration Judge. He is the son of a US citizen and he has been in the US for 20 years. Mr. Dcan now apply for naturalization and bring his family to the United States. Waiver application is discretionary to the judge after weighing positive and negative factors.