Mortgage Lenders

I have significant mortgage interest paid in 2006 on my home and all of my income was subcontractor (1099) income.

In 2005, my tax preparer told me I couldn’t deduct the mortgage interest on 1099 income but now several people have told me that I can.

Which is it? Can I deduct the mortgage interest against my sub contractor income?

Thanks!

What sort of tax preparer did you use in 2005? The only reason it is not worth deducting is if the Standard Deduction is better for you than itemizing. Maybe your preparer did not explain it very well.

It is true, though, that mortgage interest, is not generally deductible against 1099 income directly (the exception being that part which relates to a deductible home-office). Mortgage interest goes on Schedule A and is deducted from all taxable income. What this means is that you pay SE tax on your 1099 profits rather than 1099 profits less mortgage interest.

Take a look at your 2005 return. Did you just take the standard deduction? If so, take another look at your itemizable deductions. The main ones are:
Mortgage interest actually paid in the year
Property taxes actually paid in the year so far as they relate to the value of the property
State income taxes actually paid during the year
Charitable contributions actually paid during the year (minus anything given to Tsunami relief in January 2005 and claimed on the 2004 return)

If the total adds up to more than the Standard Deduction for your filing status, which you can find on the front of the return, you will need to do an amended return for 2005. See a new accountant if you have to do this.

Edit: Wealthbuilder, if you take the time to read my (or anyone else’s) answer, you will see that I covered the same points as you did, only more generally.

I am waiting for my attorney to get back to me next week. In the meantime if anyone knows the answer to this, I would really appreciate it. I have already filed and had my court date for my Chapter 7 bankruptcy. My Chapter 7 bankruptcy will be finalized on January 30 2007, and I will be released of all unsecured debt.
On my "Debtors Statement of Intention" document, we put "Surrender" for my car, and that’s exactly what I’m doing with it.
For my house we put "Exempt" which made the equity exempt and allowed me to keep the home without a forced sale. The problem and question is with my home. The mortgage company’s lawyer is pressuring me to "Reaffirm" by January 30. She says of I don’t sign the reaffirm agreement then it will default to "Redeem" "Redeem" seems to mean pay a lump sum or surrender the property? The question is; Is a Chapter 7 debtor’s home mortgage limited to reaffirmation, redemption or surrender, after Exempt? My attorney says there is a 5th choice, do nothing.

Really your only options are:
1. Surrender the property
2. Redeem the property pursuant
3. Reaffirm the debt
4. Claim the property exempt (avoid the lien)

Another option you may have
5. Retain the property and continue to make payments

http://www1.ncmb.uscourts.gov/opinions/docs/05-54201.pdf

The reaffirmation agreement is mainly to protect the creditor. If you default on the loan in the future the mortgage company can still collect the debt from you because you reobligated yourself to the debt. You may want to look at the amount of equity that is in your house to decide whether you want to reaffirm or not, once a mortgage loan go into default, their fees would take a great deal of equity out of the house.

If you do not sign a reaffirmation agreement and you do fall behind on your payments, the mortgage company will most likely send your loan to their attorney to start foreclosing without giving you any notice to cure the default with them. Most mortgage companies will not send you a billing statement or contact you if you are late, because they would technically be violating the discharge injunction.

If you have the discipline to send a payment each month and keep a track of every payment that you send, you would not have to sign a reaffirmation agreement.

they live on 1250 a month… and that is ssd for the both of them? what mortgage company would give it to them? they just got their bankruptcy papers about 6 months ago.. they live in 1,250 a month? and they get a 45,000 home loan? HOW?

With an income of $15,000 per year, the couple should be able to afford a $30-40,000 home. Such homes may exist in some areas of the country, but most homes cost much more. There is little hope that the couple will qualify for a mortgage on a home unless they find one for sale in that price range. And even then, with so little income and a history of bankruptcy, lenders would be reluctant to offer financing.

There is no law or requirement for every married couple to own a home. There is nothing wrong with renting, working hard and saving money for a possible future purchase.

Where are these so-called low-income home mortgage lenders I hear so much hoop-la about? I’ve been searching for months and have yet to find one that actually makes these loans. Most won’t make a loan for less than 100k. Others won’t touch you if your monthly income is less than 2k a month. The rest won’t touch you unless you have good credit. If your actually low income you can’t afford to buy anything on credit (even if you could find someone to extend you credit), thus your credit is considered poor because you don’t have any credit history. The catch 22.

Hello
I am a broker. Do you make 2k a month? How much is the house that you are looking at? Do you have a down payment? or is the seller of the property willing to give you a seller held second on the property plus pay your closing costs. If you can answer these questions realistically, then i can help you acheive your dreams, the rate might not be favorable but your credit score might be higher than what you think it is. A credit report that you pull of line is actually lower than a mortgage credit report. What state are you in?

My parents get about $20,000 from soc security and medicare and they have no other income or securities. They had a savings account at the beginning to the year and used $6,000 of that for some home repair,and the rest for their cemetery plots, leaving only $1,000 left.

I deposited $30,000 throughout the year into their checking acct for them to pay all their medical, food, utilities, clothes, auto, etc. They own their home and pay mortgage, taxes, insurance, homeowners fees, and home repairs with this money, as well.

Can I claim them as dependents and add their medical expenses to my deductions? Does the fact that they own their home affect this?

you should be able to declare them as dependents, but they need to know this so that they don’t declare themselves as non-dependents and take the standard deductions.

i am interested in refinancing my home and have a current loan with chase home mortgage. Which home loan lender it most popular or best to use?

No matter what lender you choose there is always a chance that that bank will sell your loan to another Bank. The Lending world is very competitive and the answer to that question is Which one will save you the most money? And give you the best service. As a broker our job is to save you money and offer the best service no matter who the actuall lender is.

I am still holding shares of American Home Mortgage which declared bankruptcy several weeks ago. The share price has plummeted and is almost worthless at this point. Do I continue to hold this position? Do I sell these shares that are worth just a few bucks? Will I recover anything as part of a class-action suit, etc.? I’m ready to just write this off as an almost total loss but I’d like to find out if I’m entitled to anything.

Before you sell and declare a loss in this financial year you should review (with an advisor) whether it is best to do that this financial year or next. I don’t know your circumstances but ften they shift year to year and there may be an advantage to waiting a bit longer. Similarly if you can write them off under a spouse’s taxes this can have a bigger impact sometimes.

As long as the shares have value though there is a chance of the phoenix rising from the ashes.

My fiancee has left and we bought a home together last May in North Carolina. We have separated and we want to take action on the mortgage we both signed. What options do we have? We both own 50/50. Should I make an offer to buy part of her half and let her make up the difference since I would be assuming the mortgage?

First make sure that you can assume the mortgage by yourself. In this economic climate there is no guarantee that the bank will let you carry it yourself. Then get good legal advice. If you screw this up, you could lose everything and trash your credit rating so do the right thing and get a good lawyer to advise you on the best actions to take.

What is the most common title for a person who evaluate if a person is going to get a home mortgage based on credit worthiness in the United Kingdom?

And what is the title of the person who actually transfers the loan payment from the Bank to the customer?

You are referring to an "underwriter". This is the person who takes a detailed look at your application, credit history, income, assets, etc and makes a determination. Many loans are underwritten using a computer with software called "desktop underwriter". It works fine for conventional conforming loans, but FHA loans or any loan that is "unusual" must be underwritten manually.

My mom recently passed away and she had a home mortgage. She had another mortgage on a previous home loan and now I can’t find any paper work on her new home mortgage. I called the bank that she has this loan with and they won’t tell me anything because I am not the executive of her will. Problem is my sister is the executive and I have a bad feeling they are trying to sell the land and take the money without telling the rest of the remaining siblings. Any help would be greatly appreciated!
Well in her will it does state that me and my other brother gets a piece of the land. But my other siblings say that it is mortgaged and that she had no credit life to pay it off. They won’t show us any paperwork and they act like the bank won’t give them any copies, which is a lie because I talked to the bank. I am going to get an attorney to fight this but I wish I knew of a way to find out for sure if the land is paid off or if they are telling the truth about it still being mortgaged.

Remind your sister that fraud is a crime. She may be the executor but that doesn’t mean she can deprive you or any other beneficiary of their inheritance. If you want to know if there is a mortgage go to your county court house, all mortgages are recorded there so you can also find out who the lender is, if any. The executor, or in this case the executrix, is responsible for paying any debts of the estate such that a piece of mortgaged property would likely need to be sold if their are multiple beneficiaries. It is a very common situation.