Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

kyle asked:


I am a fairly ‘new’ accountant. I work for a commercial real estate company and we just purchased a new commercial building. During the purchase of the building our savvy brokers were able to negotiate a reduction in the purchase price by allowing the seller to remain at the premises and keep their office suite for the next year. So essentially the negotiating played like this- 1 yr lease of seller in the building they sold to our company for a reduction of roughly $100,000.00 in the total purchase price of the building. The goal was to secure the seller as a tenant while keeping property taxes down.

The problem is that the building carries a mortgage and the debt covenant on the mortgage states the building has to maintain certain income ratios to help guarantee we are going to be able to pay the mortgage.

The building has roughly $15,000.00 of monthly rental income. This is not including the negotiation made with the seller who has one of the largest suites in the office with a market value of rent coming in at over $8,000.00 (which, over 1 year, is equivocal to the $100,000.00 purchase price reduction.) So obviously this is significant when taking the ratios into consideration.

My question is how do we account for this? That is- should this recorded as a prepaid rent asset and then be applied to rental income over the life of the lease agreement or since this was behind the scenes and not included in closing docs should it not be accounted for. I don’t want to understate revenues. But I also don’t want to overstate revenues when we aren’t receiving any real monies and therefore not truly able to pay down the mortgage with income from this tenant.

Linette Slatter

Leah asked:


I have a home in TX that I have lived in for the past 7 years. I owe more than it is worth so there is no equaity in it. Due to illness and reduction in income, I am finding it harder to make the monthly payments. It is a HUD loan. I have talked to my mortgage company about loan modification, short sale, and deed of leiu and they will not seem to work with me. My monthly payment is $1000 and I had several realtors tell me that I can rent it for $650 per month. It is a small home and there are so many foreclosures in my neigborhood. My question is if worse to comes worse and it foreclosues and if the mortgage comapny files a deficiency judgment against me, can they take from my bank account and take my income tax returns? I already know that there will be a balance left over. Will bankruptcy help? I have no other major credit card debts.
It is a FHA loan. I am not sure if HUD and FHA are the same but is a FHA loan. Thanks.
I also forgot to ask if my wages can be garnished from this. I do not want to foreclose but it just might happen. I am already trying to work 2 jobs because my children love our home but it just might happen.

Tyler Blanchfield

MakeItSo asked:


A few months ago, my mother moved into an assisted living facility. I what to buy her house and use it as a rental property. In 2 ½ years her savings will be depleted and she will apply for Medicaid. (House is paid off). This house is in Illinois and is now empty.

I would like to establish a land contract (also called owner financed loan) with my mother to buy this house. With this agreement, I will buy the house at fair market value. For the next seven years, I will make equal monthly payments into her account at the assisted living facility, until the house is fully paid off. Making payments to the assisted living facility will ensure that all the money will be used for her care.

I would love to buy the house outright but it is very difficult to get a loan these days. My family has owned the house for almost 50 years and we want to continue to keep it in the family’s name.

Also does the Deficit Reduction Act of 2005 (DRA) allow for such an arrangement?
Notice the excerpt below:

“The DRA provides that any purchase of a note, or any loan or mortgage, will be treated as a transfer, subject to penalty unless the following conditions are met:
• The repayment terms must be actuarially sound;
• Payments must be made in equal amounts during the term of the loan with no deferral of payments and no balloon payments; and
• The note, loan or mortgage must prohibit cancellation of the debt upon death of the lender.”

Taken from: https://www.cms.gov/DeficitReductionAct/Downloads/BackgrounderTOA_.pdf

Prince Mihelcic

chica boom asked:


I purchased a condo in feb of 2007 and it has lost value (about 50K). I did a little research about the stimulus plan and I meet all of the criteria to get a loan modification (my debt to income ratio is 60% and the condo is occupied by me). There is one thing that I’m not sure about though, in order to qualify it says you have to prove a hardship (i.e a significant reduction in income, or significant increase in expenses). I still have my income but my work has reduced overtime hours, and this is something I counted on helping through the first few years of being a homeowner. Also, my employer has been talking about reducing staff 25% but this wont happen for a few months.

Does anyone know if they will qualify me based on my employer reducing overtime hours? This is significant to me because I live paycheck to paycheck.

Sherril Pellegren

Dave asked:


My wife and I are in the military, we left our house to move overseas and have been unable to sell our house, we bleed out the monthly payment +utilities every month. This house has been on the market since Feb 09 with multiple price reductions, even if the house sells now we have to come out of pocket 10k. We are wondering what the best approach is, I dont know much about forclosure or what happens after. Will they come after our savings account to settle the debt? Any info would be appreciated.

Dave

valstep asked:


Niet genoeg inkomen om overheadkosten te steunen. We' ve verminderde ??n of andere schuld, bewoog zich uit ons primair huis, huurde het en nog can' t de steun heeft dit andere bezit dat het probeert te huren en ook het meer dan twee jaar probeert te verkopen nu de prijs vaak en nu wij nog can' verminderd; t verkoopt het voor wat verschuldigd is geweest en het bezit is nu minder dan lening waard. We' ve verloor over $200K in betaling van primair en secundair leningshoofd en belang sinds het bezitten van het en haat om krediet te ru?neren, maar kijkt als it' S.A. moet sinds I' ve die uit de gelden van het levensbesparingen in werking wordt gesteld om het te houden stroom en mijn inkomen is nauwelijks genoeg om me op zee op dit ogenblik te houden. I' D liefde om een belangrijkste saldovermindering aan een bedrag voor te stellen ik kan proberen om zich het bezit te veroorloven en te houden blijven het verkopen om saldo te betalen en krediet, maar don' niet te ru?neren; t weet wat mijn ware opties I' zijn; D houdt van devil' te horen; s verdediger en bank' s perspectief. Blijven vinden wij verminderend het en korte verkoopkopers en hoe ik bank van het opleggen van inzameling van de rest van het saldo tegenhoud als ik een korte verkoopkoper kan vinden omdat als het over dat komt, I' D verkiest voor het bezit te vechten en enkel verhinderd het te hebben als that' s het geval. HULP!!

Jeremiah Schmautz

Matthew asked:



My wife to get out of subdivision that can cause birth defects and pick up few part time jobs if foreclose whats the last year took reduction in has recently found some large levels of lead in the worst that can.

My wife to get out of subdivision live in has recently found some small children feel this crap and learning disabilities in different parts of this crap and have decided that can cause birth defects.


Juliana Gervasio

owaowa asked:


Hello,

I have a huge problem with my ex and our house that we share. To sum up the story, we were never married just engaged when we bought the house in 2006. We broke up 1.5 year ago and I moved out since he wanted to stay and make payments. We had a huge fight when we broke up. He tried to have me sign the deed of our house over to him and still keep my name on the mortgage. In addition to closing and taking our savings that we had. This was all after, I agreed to take half of his credit card debt (all in his name) since it was our debt technicaly and I felt quilty of him just paying back for it. This was all before the deed scenario.

We sort of had a falling out and things just remianded where he stayed there and was making payments. Now, he started to email me again regarding the house, I received 20 emails in about a week from him. I’m just scared that he will take advantage of me, he is foreclosure/real estate attorney and I’m having a hard time believing him especially after the break up. He’s deceived me so many times in the 6 years we were together in every way possible.

He is telling me the new options that are available and that we could finally resloved this situation. Here is a snap shot of the email that I got from him

“1. Prevent damage to either of our credits.
2. Ideally, get rid of the house either via short sale, deed in lieu (which
means give the house directly back to the bank), or principle reduction and
then sell. I don’t need a 3bd house at $2k/mo. This depends on what the
bank will agree to. It’s not in my control, but I will pursue and argue for
this as much as possible.
3. If getting rid of the house is not possible and we are stuck with it for
now, then I would at least like to reduce the payment via an interest rate
deduction.”

This was all after he told me how he was doing very well with his law firm in the inital email and that his accounting (he’s a cpa as well) contact expired and he can be considered unemployed giving us a golden ticket out of this mess. I just don’t know what to think, he wants me to send my documents to our mortgage bank so they can look at the options. I told him I would do this monday after he kept emailing me non stop. Do you guys this I need to get a lawyer and if so what kind rela estate/family. I’m so scarred of him and I don’t know what to do nor do I have any $ to do anything. I work and go to school and I’cant afford any extra attorney expenses. Can someone please give me any sort of advise, I have no family/friends to turn to. I’m scarred for my life and I don’t want to have anxiety attacks like I used to.

To emails that he sent were vague and he initially wanted to do a modification option but now he is saying he’s ok financially but wants the option #1 in the email. He is always vague and always has a alternative motive with everything. To make things weirder, he emails this to me after he breaks of with his gf (who’s company is moving into my office bulding, on the same floor on monday). He sent me an email the next day after they break off. I also know some people at his gf compnay since my ex used to work there (he got her a job there) and I’m freaking out even more.

I don’t know what to do. I feel so scarred and I was on medication for a year due to our break up and the aftermath that occured. All of ‘our friends’ stopped talking to me since I met them through him (incuding the one’s that are moving in next door), At one point I even tried to kill myself by overdosing on my medication. I thought I was ok since I’ve been seing a therapist but him emailing me has brought everything back.

Sorry for the long question. Any advise would be appreciated. Thanks

I also tried to call the free government number they have available, but they don’t seem helfpul.

Rigoberto Iwasko

daddio asked:


i think i’ve been fairly smart. every penny of reduction, i’ve saved. of course, there’s a pre-payment penalty. i have about 10 months left on the penalty term, but i’m getting offers from everywhere, to refinance.

my wife and i have excellent credit, and no other debt. (seriously-ZERO)

so my question is this—–all the offers i’m getting waive the penalty. do i jump on one now, or hold out and hope the “deal gets sweeter”?

NO INCUMBENTS ’08!!!
i went to the “sub-prime” because it lowered my payment 400.00/month. i have banked almost ALL of it. the offers are coming from mortgage brokers who deal with my lender. pretty straightforward, really. they want 500.00 to do the deal, i’m sure this covers paperwork or whatever. there are no other closing costs.

Osvaldo Klimaszewski

jinxies asked:


We are currently in great standings with our mortgage and the bank which holds the note. Due to unforeseen circumstances, we’ve got a reduction in income. We have a HELOC with another bank and about 50K in consumer debt. We have been unsuccessful in obtaining a refi using an outside broker obtained on the internet. Are biggest setback is our mortgage payment which is a fixed 30yr at 6.5% ($3500 mo). We cannot afford to pay the 1st, HELOC and the consumer debt anymore. We’ve never made a late payment…do we have a good chance with a modification? We have financed 2 houses with our current bank and have a personal relationship with our banks’ broker. We are going to call and ask but I was wondering if banks will modify one loan without having to touch the HELOC? We cannot refi both (not enough income to support it). We could afford to make the payment if we just had a lower 1st. NO WISE ***** COMMENTS!! Serious answers only!
We would sell if the market wasn’t in such a slump…believe me, that was my 1st thought. California is the worst!

Ofelia Hatley