If you are submerged under debt and are dreading the loss of your property followed by a foreclosure, it is the right time to get for yourself a debt relief program. Foreclosure is a legal procedure by which the owner losses his right to property due to faulty payments or debt. Generally, it follows a public auction of the property and the liquidated money is used for the repayment of the mortgage debt. A debt relief program will help you get rid of your mortgage debts and at the same time will also save you from foreclosure. However, sometimes it is not possible to save the property and it is a wise decision to opt for foreclosure. It might come as a boon in a situation of crisis and free you from all the debts.

Getting rid of all the financial debt is not all that easy. As per a San Jose Real Estate agent, “The cancellation of debt results in tax payments and one has to be ready to deal with the consequences”. Nevertheless, it is impossible to free oneself from the grips of tax that is associated with foreclosure and live a life that is free of debt.

One way to get rid of the tax is by filing the Mortgage Forgiveness Debt Relief Act (MFDRA). To gain protection under MFDRA, it is necessary to owe a foreclosure debt of at least one million dollars. The act can be put into practice only for the qualified gratitude on a taxpayer’s primary residence. There are some other ways as well through which, the payment of tax can be avoided. Some of them are discussed below.

• The debt can be canceled if bankruptcy is filled under Chapter 11.

• If the debtor is bankrupt during the debt cancellation process.

• If the family or relatives are involved in the foreclosure, the tax can be written-off as a gift.

There are a few more ways to avoid the repayment of tax after foreclosure. However, it is best to seek professional help in such crises. As a taxpayer, it is necessary for you to know the aforementioned points so that you can deal with the situations in a better way.

The above article is written by the writers of WizKraft Media and Marketing!!!

Related articles

• TurboTax – Tax Relief for Cancelled Mortgage Debt (turbotax.intuit.com)
• Do you pay taxes on debt discharged in bankruptcy (wiki.answers.com)
• Foreclosed? The tax man may want his cut (reowablog.wordpress.com)

An unsecured loan is given after the borrower pledges to pay back the principle with interest in good faith. With this type of loan no property of the borrower is held as collateral for security purpose. Generally a lender assesses the creditworthiness of a borrower before tendering the loan and a stipulated time frame is agreed upon for the full repayment of the loan taken. If the debtor is unable to pay back on time, Federal or state law permits a debtor to rearrange his repayment scheme with a debt settlement company.

Now, in case the borrower defaults on the unsecured loan payment, it becomes difficult for any lender to recover his money.   In the absence of any collateral, the lender cannot obtain a court ordain so easily to attach lien on the borrower’s property. Therefore, the lender has to fall back on collection agencies or utilize his own collection unit to pursue the debtor to pay him back. Employing a collection agency for the sake of procuring your legitimate money is permitted by the rule of law if not used for harassment. A collector can contact a debtor via telephone, email or physically appearing before him.

But FDCPA laws are very stringent in America and demand complete adherence on the part of the creditors. These laws were initiated Read the rest of this entry

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Again I want to re-emphasize that my husband and I had our financial challenges the first year we started using the Money Merge Account.  Remember I told you in the article “Becoming Debt Free with the Money Merge Account Part 4” about the home equity line of credit (HELOC) we had and that we weren’t too happy with the bank where we got it?

I will repeat that when we applied for the account, we signed the paperwork in which everything was correct. Then when the HELOC was funded the bank “out of the blue” put another woman’s name on our account.  This woman’s last name was not even closely similar to ours.  We not only did not know this person, the bank couldn’t figure out how she got on our account.  It took us several months to get her name removed from our account.

Even though we were not particularly happy with the bank, the Money Merge Account system from United First Financial was working even better than we had anticipated.

From August 2008 until February 2009 we paid an average of $39.00 a month for our interest only HELOC loan.  Each month we put our income into the HELOC making an additional principal payment on the HELOC and let it sit for as long as possible. When it was time to pay the bills we would take out an “advance” from the HELOC.

By depositing money into the line of credit and withdrawing money out the balance continued to fluctuate.  By February our line of credit balance was $33,487; well under the withdrawals of $49,635. We were able to reduce this loan balance $16,148 by just following the guidance of United First Financial’s Money Merge Account software.

We had also reduced our mortgages from 9 to 8 by paying off one of the 2 second loans we had when we became clients with United First Financial.  Every thing was happening just as the Money Merge Account guidance was telling us it was supposed to be happening.  And then………

Read the rest of this entry

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Now if you remember, I told you previously that our home equity line of credit (HELOC) balance was zero when we began using the Money Merge Account software.  The first withdrawal we made from our HELOC was $3500, the cost of the Money Merge Account.

Our first month’s interest on our HELOC was $1.72.  As I said in “Becoming Debt Free with the Money Merge Account Part 4” the interest on an open-ended HELOC is based on the daily average amount.  Because we deposited our income into the HELOC and let it sit for a time period until our bills were due the daily amount fluctuated and the amount of interest due on the HELOC is kept low.

In September 2008, the Money Merge Account software prompted us to withdraw $9200 from our HELOC and pay off one of the 2^nd mortgages of our rental properties.  That month our interest on our HELOC was $15.58.

As with other people in the past year, we have had our financial challenges.  All I can say is that we are very thankful that we had found United First Financial and were on the Money Merge Account.  Remember I told you we had rental properties? We ended up having some additional expenses that we hadn’t counted on such as installing a new roof and a major kitchen repair.

From September 2008 to February 2009 we ended up withdrawing $49,635 from our HELOC.  Only the withdrawal in September 2008 of $9200 was used to pay down the principal of our loans, the rest went to other projects and emergencies.

Here is the breakdown of our line of credit withdrawals:

With all of these withdrawals our Money Merge Account “Dashboard” kept us informed on the affect of each cost and the results are simply unbelievable.  One great feature that is part of the Money Merge Account software is the ability to know the “true cost” of expenditures.

If you are thinking of buying a new Read the rest of this entry

Watch how the Money Merge Account is helping one man invest in his children

Back in August 2008 it took about 10 days to complete the paperwork, mail it in, and get it approved by United First Financial before we could get the Money Merge Account up and running.

We were very excited to get started so this time delay was somewhat frustrating to us. Nowadays United First Financial has made it much easier and quicker for clients to activate their Money Merge Accounts online.

Because we needed to set up our bank accounts properly with the bank that we had the HELOC with we actually didn’t get started on our quest to become debt free until September 2008.

Just a note: The United First Financial product is a financial coaching software. They do not provide any banking services so the bank comments I make are based on our experiences with well known banking establishments.

I want to digress here for a moment and tell you about a gigantic snafu that had happened when we originally got our HELOC from the bank.  This bank shall remain nameless in this article, but I want to let it be known that from the beginning we were not Read the rest of this entry

Click on video to see an overview of the Money Merge Account

Our Money Merge Account Report Results

When we had our Money Merge Account analysis done our agent put our data in very conservatively.  This was a good thing, because even conservatively the financial report results are hard to believe.  We calculated our discretionary income, otherwise the amount of money we had left in our bank accounts at the end of each month as $125.

Our financial picture is much different than many other people’s because over the years we have purchased a few rental properties.  Because of these rental properties we have more mortgages than the norm. In fact we had seven 1^st mortgages, two 2^nd mortgages, a HELOC with a zero balance, and a car loan.

Our total loan debts added up to $489,869 with 26.5 years left to pay on our contracts.  The interest we owed the banks was $479,869.  This basically doubled our borrowed amount and made our total debt payment obligation add up to $969,738.  Sorry to bore you with numbers but to put it into simple terms when you sign on the dotted line for a 30-year mortgage you basically pay double for the ability to borrow the money from the lender.

Our analysis results guaranteed that we would have all of our debt paid off in 16.3 years; saving 10.2 years that we would no longer have to make our mortgage payments. This debt also included the cost of the Money Merge Account program.  Our loan debt Read the rest of this entry

Click on video to see United First Financial co-founders' story

In February of 2008 my husband and I met with our financial planner and he presented us with information about United First Financial® and the Money Merge Account^™ program.  We were impressed with what the software could do to help us pay off debt quickly, but we felt that the price tag of $3500 was too high of a price to pay, even though we were told at the time that the software program would pay for itself within a few months.  We decided at that time against purchasing the Money Merge Account and went on with our lives as normal, not making much headway to eliminate debts.

Four months go by and now it’s June. One day on the radio we heard an advertisement about a new program that let you purchase solar power electricity through a lease program and have it pay for itself in 10 years through the reduction in your electric bills. We also learned that there were solar tax credits and solar tax incentives from our city and the federal government.

Because of the solar tax incentives and “going green” is the right thing to do, my husband and I decided that we wanted to look into having solar power electricity installed for our home.

For over a month we had seven different solar Read the rest of this entry