Cancellation Of Debt Consequences

 

When borrowers face a financial outlook that is less than promising, it is important for them to consider the potential negative tax consequences of phantom gain and cancellation of debt.

Phantom gain refers to a situation where a borrower is deemed to have realized a gain for tax purposes, even though no actual cash or property was received. This can occur when a borrower sells a property for less than the outstanding debt owed on it, resulting in a debt forgiveness amount that is considered taxable income.

Cancellation of debt, or COD, occurs when a lender forgives all or a portion of a borrower's debt. This forgiven debt is also considered taxable income and must be reported on the borrower's tax return.

It is important for borrowers to be aware of these potential tax consequences and to seek the advice of a qualified tax professional before making any decisions that may result in phantom gain or cancellation of debt. There may be ways to minimize or defer these tax liabilities, and a tax professional can help borrowers navigate these complex issues.

It doesn't matter if you are giving the keys back on commercial or residential real estate the consequences are the same:

The forgiveness is considered income gain.

Credit will show the negative event.

Results may be more painful long term.

Thirty Banks With Large Deposits Not FDIC Insured

 

Thirty Banks With Large Deposits Not FDIC Insured

There are some types of accounts that do not have FDIC insurance coverage up to $250,000. Here are some examples:

1. Investment accounts: Investment accounts, such as brokerage accounts, mutual funds, and stocks, are not FDIC-insured. These types of accounts carry different forms of investment risk, including the risk of loss of principal.

2. Annuities: Annuities are contracts between an individual and an insurance company. They are not FDIC-insured and carry different types of risks associated with the insurance company's financial health and the performance of the underlying investments.

3. Safe deposit boxes: Safe deposit boxes are not covered by FDIC insurance. While they may be a secure place to store important documents or valuables, the contents of a safe deposit box are not insured against loss or damage.

4. Cryptocurrency accounts: Cryptocurrency accounts, such as Bitcoin wallets, are not FDIC-insured. These accounts are subject to the volatility of cryptocurrency markets and the risks associated with storing digital assets.

5. REIT funds

6. Real Estate

7. Accounts where you have more than $250000 in one place

8. other types of accounts...

It's important to note that the above examples are not an exhaustive list and that other types of accounts or financial products may also not be covered by FDIC insurance. If you have any doubts or questions about the insurance coverage of a particular account, it is always a good idea to check with your financial institution or consult with a financial advisor.

So what is the solution if you are wealthy enough to have a million dollars in cash?

Move the deposits to accounts in different banks each under $250000.00

Silicon Valley Bank*	93.8	$209
	Bank of New York Mellon	92.0	$325
	State Street Bank and Trust Co.	91.2	$298
	Signature Bank*	89.3	$110
	Northern Trust Co.	81.6	$155
	Citibank NA	73.7	$1,767
	CIBC Bank USA	73.1	$51
	HSBC Bank USA NA	70.6	$162
	City National Bank	70.3	$97
	First Republic Bank	67.4	$213
	East West Bank	65.8	$64
	BMO Harris Bank NA	60.5	$177
	Comerica Bank	60.4	$86
	Western Alliance Bank	56.3	$68
	Frost Bank	53.6	$53
	Banco Popular de Puerto Rico	53.1	$56
	MUFG Union Bank NA**	53.0	$104
	Zions Bancorp. NA	52.2	$90
	JPMorgan Chase Bank NA	52	$3,202
	U.S. Bank NA	51.4	$585
	Synovus Bank	50.7	$60
	Bank of the West**	50.7	$92
	KeyBank NA	50.0	$188
	Fifth Third Bank NA	48.4	$206
	Goldman Sachs Bank USA	47.6	$487
	Citizens Bank NA	47.5	$226
	Manufacturers and Traders Trust Co.	47.1	$200
	First Horizon Bank	46.2	$79
	Bank of America NA	46.1	$2,419
	Huntington National Bank	45.6	$182

Find A Great Loan Officer

 

How to Find a Great Loan Officer

Loan Officer, Mortgage Banker, Mortgage Consultant, Expert

Finding a great loan officer is crucial when you plan to buy a house or take out a loan. A loan officer is the person who guides you through the loan application process, helps you choose the right loan program, and ensures that your application meets the lender's requirements. A great loan officer can make the entire loan process smoother, less stressful, and more successful. They can be a resource for title, escrow, settlement, insurance, fixing your credit, finding a CPA, and can refer you to a great Realtor

In this article, we discuss the qualities you to look for in a great mortgage officer and the steps you can take to find one.

1. Look for Experience and Expertise

One of the most important qualities to look for in a loan officer is experience and expertise. You want someone who has been in the business more than seven years, has a deep understanding of the loan programs and guidelines, and can provide you with valuable advice and recommendations. Look for a loan officer who has a solid track record of successfully closing loans and has positive reviews from their previous clients. Experienced loan officers know how to navigate the loan process, anticipate and address potential issues, advise what program best suits your homeownership goals, and help you get the best possible loan terms.

2. Check Their Credentials

Loan officers are required to be licensed and registered with the National Mortgage Licensing System (NMLS). You can easily check their license status and any disciplinary actions taken against them by visiting the NMLS Consumer Access website. Look for loan officers who are in good standing, have no disciplinary actions or complaints, and have a high score on the NMLS. They must be licensed in the state where your proposed real estate investment sits.

3. Ask for Referrals and Recommendations

One of the best ways to find a great loan officer is to ask for referrals and recommendations from your friends, family, and colleagues who have recently bought a house or taken out a loan. Ask them about their experience with their loan officer, whether they were satisfied with the service, and if they would recommend them. You can also ask your real estate agent for a referral, as they often work with loan officers and have experience with their work. Real estate agents can provide valuable insights into which loan officers are the most responsive, reliable, and effective.

4. Interview Multiple Loan Officers

Don't settle for the first loan officer you come across. Instead, interview two or three loan officers to find the one who is the best fit for you. During the interview, ask them about their experience, the loan programs they offer, the loan process timeline, their communication style, and their availability. Pay attention to how they answer your questions, whether they listen to your concerns, and whether they provide clear and concise explanations. A great loan officer should be able to communicate complex information in a way that is easy to understand and should be responsive to your questions and concerns.

5. Compare Loan Offers

When you receive loan offers from different lenders, make sure to compare them carefully. Look at the interest rates, closing costs, fees, and the loan terms. A great loan officer should be able to help you understand the differences between the loan offers and explain the pros and cons of each one. Don't choose a loan solely based on the interest rate, as there may be other factors that could impact the cost of the loan. Make sure to read the fine print and ask questions if anything is unclear.

6. Check Their Communication Style

Effective communication is key to a successful loan process. A great loan officer should be easy to reach, responsive to your calls and emails, and able to provide regular updates on the status of your loan application. They should be able to explain complex loan terms and guidelines in a way that is easy to understand and should be able to provide you with the information you need to make informed decisions. If you feel that the loan officer is not working in the manner you like, find someone else. Most lenders communicate by email all the legal documents and rate confirmations. Check your email daily during the process.

Finding a great loan officer should not feel like stepping in a tangle of cactus.

Caroline Gerardo Barbeau

NMLS #324982

(949) 784- 9699