Deed of Trust

Archive for March, 2009

Question: How do you report a completely corrupt judge that signed a fraudulent Deed of Trust in on my behalf?

He never allowed me to speak or even read the document at the hearing. Obviously, he is a corrupt as the Ace of Spades is different in a deck of cards. By the way, "family" court in California is an absolute mockery of our Constitution and it needs serious reformation. It's no wonder we have so many "domestic" problems in our society. There is obviously "zero" basis of judgement in the family court system. It is a shame......

Answer: Contact the State Attorney General, and the California Bar.
You can report him to both of those entities.

How to Get a Deed of Trust On Record (by mail)

Question: I am having a difficult time understanding short sale consequences. Can someone refer me to a web site or #?

I am being told that I have to pay the difference of the short sale back to countrywide pay taxes on a 1099 form, that California is not a deficiency judgement state so even though I have a recourse loan I don't have to pay the difference but I do have to pay the taxes. I am being thrown words such as insolvency, judicial foreclosure, non-judicial foreclosure, Trust Deed foreclosure...what does all this mean?

Answer: Hmmm . . . In general, the amount of debt forgiven in a short sale, is considered by the IRS "income" to the debtor/seller & so income taxes must be paid on the amount. However if it was originally a "non-recourse loan," meaning the lender agreed to look only to the property and not to obtain a judgment or pursue the borrower for the difference, then the forgiven amount is NOT considered income. Another exception to treating a forgiven amount as income is if the debtor was bankrupt or "insolvent" at the time of the short sale. Bankruptcy is easy to prove; non-bankrupt insolvency much more difficult. Almost no residential mortgage loans are "non-recourse." However, in some states, such as CA, where Deeds of Trust permitting "non-judicial" foreclosure proceedings are permitted, such non-judicial foreclosures do not result in deficiency judgments, and so a short sale in such cases should not result in treatment of the forgiven debt as income.

The bank agreeing to a short sale must report the forgiven debt on a 1099-C like any other income.

Note: I am not a CA attorney & this should be treated as a lay answer. Speak to a CA attorney or an accountant for a definitive answer or for any tax advice.

GEORGE HARRISON: all things must pass