We Buy Houses Blog, REO, Stop Foreclosure Home Loan Modifications Blog

In 2009 I sent $3,500 to a loan modification company that was suppose to get my home loan modified. Unfortunately for me the company stole my money, went out of business and I never got my home loan modified.

Can I write off the money used to modify my loan? If so, where would it fall under on my 1040?

Thank you for all your help.

Yes, you can. It falls under the Topic 504 – Home Mortgage Points. Here’s a link with more details on where it falls http://www.irs.gov/taxtopics/tc504.html

You should have saved your money and do the loan Modification yourself. It’s a simple process.

Paul A
www.loankit.org

Forget websites. Go to the country courthouse where these foreclosures have to be posted. Take the name of the referree and number and call him and ask him about the property. Find out which bank has the mortgage and call them and find out how much they have into the property. Go look at the property to make sure that they don’t owe more than you want to pay.

You will need probably 20% when the hammer drops at the auction and the balance in 30 days. Have the money ready or an equity line of credit to finance it till you can take it over, fix it up so a bank will give you a mortgage on it and refinance it if you want cash out.

Good way to make money but be careful because a lot of people are upside down on their mortgages at this time because they got 95% financing and property went down in value and they didn’t keep it up further reducing it’s value.

Good luck!

We got about a month behind on our mortgage right after hurricane Ivan due to damages and my husband out of work (his work was damaged). We have our mortgage through Ameriquest. We almost had it caught up and they upped the interest rate twice, increasing the monthly payment, that plus the late fees keep piling up. We wound up two months behind. I sent this months’ payment in plus an extra $100, but they still haven’t applied it to my mortgage. What do I do? And if they are starting the preforeclosure things will they refuse my monthly payment? BTW, I live in Florida. I don’t want to lose our house. If we can just work out the two back payments and slack off on the late fees, we can make the mortgage payment ok.

Contact the housing department. It is not legal for them to just up and raise your interest rate unless you asked them to.

Additionally I would send them a copy of your husbands unemployment claim.

Another idea is to check your homeowners insurance, you should have coverage as your home was damaged in a natural disaster.

Any that issue mortgages.