Senate Bill 401:
“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
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A home owner in Gibsonia, Pa., about 15 miles north of Pittsburgh, has sued Bank of America because it sent a contractor to turn off the utilities in her home and secure the property because it erroneously believed she was in default.
In the process, the contractor took home owner Angela Iannelli’s 11-year-old Blue and Gold Macaw, Luke — a loss that she said caused her to worry so much that she had to take prescription medicine for anxiety.
Initially, Bank of America was not helpful in finding the lost parrot, and a bank representative allegedly hung up on Iannelli, telling her that they were “tired of hearing” from her.
Iannelli, who is suing for $50,000 in damages, was ultimately able to drive 80 miles to the contractor’s office and rescue the bird.
This week, Bank of America apologized for the incident.
Source: The Wall Street Journal, James R. Hagerty (03/11/2010)
So…you’ve got an IndyMac loan do you? Need/want to do a short sale? Here’s an amazing and utterly disgusting truth on why not only IndyMac loan mods aren’t happening, but other companies also.
Why IndyMac doesn\’t want to mod your loan!