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Debt Relief – Insolvency – Bankruptcy Information » Questions & Answers

Questions About Student Loan Refinancing Interest Rates

Should I refinance my new car now, with mediocre credit, or wait a year until my situation improves? I bought a 2009 Mitsubishi Eclipse back in April. Not my best decision ever– it’s $680 a month at 16.9% interest (yeah I know :/ ). My situation now: I make about $20,000 a year at my job. I have maxed out credit cards totaling about $7,000 and lots of student loans. My situation December of 2010: I will be graduating from school then, and hopefully find a teaching job. My salary will go from $20,000 to about $31,000. All of my credit cards will be paid off (I already cut them up). My question is: Should I try to refinance now, in spite of my poor credit, just so that I can reduce my car … Read entire article »

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Questions About Student Loan Refinancing Options

Stupidly co-signed for an irresponsible friend, now what? A few years ago, I did something very stupid and co-signed a sizable student loan for a friend to go to school. He couldn’t get the loan on his own and I had good credit; he was supposed to be done with school in a year and would then be able to land a job making $80,000-100,000 annually, so he would be more than capable of paying it back. I was very hesitant to co-sign, but he literally had no one else that could help him out with this and really needed to finish his education. Long story short, his “one year” of school turned into two and a half years, he ran out of money and still didn’t finish his degree. He was … Read entire article »

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Questions About Making Home Affordable

Is is true that if you have PMI that you cannot refinance under the Making Home Affordable program? i was told my Wells Fargo whom i currently have my home loan with and when i asked them about the program they said that i did not qualify because i have private mortgage insurance. Industry Expert answers: Yes, it’s true. You can still refinance, but not under the new higher loan to values w/out PMI program. I want to refinance under the making home affordable plan. I have not been late on my mortgage.? My payments have NEVER been late but my credit score is 540 because of some other issues. Can I qualify under this program still? I heard that it is not credit driven? Industry Expert answers: No, the plan is to prevent foreclosure, not for … Read entire article »

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Questions About Student Loan Refinancing Rates

Is It Better to Have Student Loans or a Mortgage? My wife and I owe over $150,000 in student debt with interest rates around 9-11% on each loan. Is it better to just refinance our house and pay it all off, for a lower monthly payment and interest rate? Industry Expert answers: Student loan interest is also tax deductible I would shop around for some student loan consolidation companies. You should be able to get something around 5% for student loans (check Bank of America or other large lenders). On one hand student loans are unsecured debt which is a fairly high liability in the eyes of some financial institutions. But many don’t look at it that way because usually at worst they will garnish your wages for a pretty low amount. On the other hand having little … Read entire article »

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Questions About Foreclosure Lawyers

Are lawyer fees pertaining to a Foreclosure tax deductable? My house went into foreclosure in 2006 and we were able to make a full payment to bring it current in December. This payment included late fees, lawyer fees, and inspection fees… are any of these tax deductable? Industry Expert answers: No none of those expenses are deductible on the Federal Tax return. Only legal fees paid in relation to a tax matter or in the production of taxable income could be deductible Publication 936 Publication 529 Filing chapter 7 and surrendering home, can you help me understand foreclosure process? We will be surrendering our home in our Chapter 7 bankruptcy due to my husband being unemployed, and we can not afford the house any longer. Our lawyer briefly explained the foreclosure prcoess to us, but my question is, … Read entire article »

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Questions About Debt Consolidation Companies

How do debt consolidation companies make money? I wonder I always hear on the radio claims that company A reduced my debt from 40,000 to 10,000 How is that possible? And how do these companies make their money? Industry Expert answers: They charge you a fee to handle your situation. That’s how they make their money. Sometimes they work their fees into your monthly payment and the total still comes out less than if you were trying to pay all the bills separately. Nobody legally reduces their debt from $40K to $10K without filing bankruptcy. Beware of those exaggerated claims. If you are really behind in payments and the creditors think you are a heartbeat from filing bankruptcy, they will negotiate to reduce the amount you owe by about 30-35%. That’s how the consolidator gets your … Read entire article »

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Questions About Form 982

I am doing a short sale. How can I have the taxes waived on the 1099 I will receive? The amt of debt forgiven will be about $100K. The lender will give me a 1099 for taxes on the 100K. I have been told that IRS Form 982 will waive these taxes? How does it work? Do I have to qualify in some way? Industry Expert answers: According to this website: It looks like that you have to be insolvent at the time. An accountant should help you out. I do short sales in California and I think you’re in California as well so I hope you’re able to find your answer. Regards How to file an amended return after receiving a 1099c but plan to file a 982 for a discharge of the debt? I filed my … Read entire article »

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Questions About Making Home Affordable Refinance Program

Home appraisal value with basement finish? I am a mortgage underwriter, and have a couple questions for an appraiser. I want to refinance my home, but I pulled the comps and there weren’t many in the value range I am hoping for. There are several which have 100-200 more above ground living space, with some varying finished basement square footage. Basement living space is common for the area. My basement is already divided into 4 rooms. One is an unfinished laundry with a stall shower. The other three rooms have concrete flooring, a mixture of drywall/wood paneling walls, and ceilings. One room could be a family room, one of the rooms has a closet, but no egress window, but I am assuming this won’t make a huge difference since it can’t be … Read entire article »

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Questions About Student Loan Refinancing

Is it a good idea to include a $18,000 student loan in the refinancing of my home? The loan is a 30 year fixed loan and I am taking it out to pay off credit card debt, other bills and a small amount will go towards fixing up my home. I could sell the condo in 12 months for almost 3x that of the loan amount. Right now I owe 1/6 of the market value. Industry Expert answers: Student loan interest is often deductible, rates are generally very low, and they’re often for extended periods of time. The longer you have to pay it, the cheaper those payments become over time. I almost NEVER recommend paying off student loans with mortgage debt. I don’t care if it saves you another $50/mo. It’s just not … Read entire article »

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Questions About Form 982 Foreclosure

Taxes – 1099A & 1099C what do i do?? 982?? I owned a home in 2007, lost it in Feb 07, i filed a deed in lieu of foreclosure. But tech a foreclosure that i am learning now. Me and my ex fiance both rcvd the 1099A and 1099C, i need to know what we can do or what steps we need to take to file, either long form or through turbo tax. he made less then 12000.00 for the year and i made ovr 40k. keying into turbo tax i owe over 10k and he owes 6-7K. then found out about the 982 form. is there a way that i/we can qualify for it? do we both need to file all these forms? why did we get both? im panicking, … Read entire article »

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Questions About Student Loan Consolidation

Which company has the best student loan consolidation rates? I have a subsidized student loan in the amount of $11,460.55, does anyone know the names of specific companies that have the best consolidation rates at this time? What are those rates? Well maybe I should ask, “which company offeres the best incentives and rate deductions”? Industry Expert answers: The federal consolidation loan has a fixed interest rate, based on the weighted average of the interest rates of the student loans being consolidated, excluding Health Education Assistance Loans (HEALs), rounded up to the nearest 0.125% or 8.25%, whichever is less. The weighted-average interest rate calculation is based on the official interest rates for the student loans being consolidated, exclusive of any borrower benefit or other special rate discounts. By law, all lenders are required to use the … Read entire article »

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