[amdeist]

If you search for better business bureau and go on their website you can type in Wilshire Holding Group and find they are a member of the Better Business Bureau if it is the same one you are looking at using. They have no compaints for the past 36 months. You should go on their website and check this company out. If you are considering letting them have your house, you certainly want to use a lawyer to represent you in the transaction to make sure there are no unknown risks.

[RADD32]

DON'T USE THIS COMPANY! YOU NEED TO GO TO THESE GOVERNMENT WEBSITES WHO HAVE RECENTLY PUBLIUSHED PUBLIC WARNINGS ABOUT THESE PEOPLE!! AND READ MY STORY!!

FEDERAL RESERVE BOARD-
FRB: 5 Tips for Avoiding Foreclosure Scams

US DEPARTMENT OF JUSTICE-
USTP - Bankruptcy Fraud Scams

FEDERAL TRADE COMMISSION-
FTC Sues Mortgage Foreclosure “Rescue” Operation
Foreclosure Rescue Scams: Another Potential Stress for Homeowners in Distress
A note to Homeowners Flyer
Mortgage Payments Sending You Reeling? Here’s What to Do

FDIC-
FDIC: Beware of Foreclosure Rescue Scams
FDIC: Beware of Foreclosure Rescue Scams
FDIC: Beware of Foreclosure Rescue Scams
FDIC: Beware of Foreclosure Rescue Scams
FDIC: Beware of Foreclosure Rescue Scams

US TREASURY DEPT-
Consumer Advisory 2009-1

THESE ARE ALL RECENTLY RELEASED PUBLIC AWARENESS STATEMENTS BY THE U.S. GOVERNMENT AND ALL THE PROOF YOU'LL NEED TO NEVER DEAL WITH WILSHIRE OR ANY OTHER BUSINESS LIKE THIS!

I am a tenant in property that "Wilshire Holding Group, Inc" has acquired the Deed to, in fact they acquired Deeds to 3 properties on my street, which have 2 rentals at each property, so 6 rentals. I have lived here for 8 years, and many of my neighbors have lived here for 5 years or more, with no problems. In February 2009, "Wilshire" sent a letter notifying 2 of us that they were the new property owners, and to mail rent to them. Now I wouldn't have been so sceptical but:

1- The letter didn't have a postmark anywhere on the envelope
2- The return address was in Santa Clarita, California
3- Inside were self addressed stamped envelopes to mail our rent to a P.O.Box in Land O Lakes Florida
4- The letter stated to contact "Lisa" on her direct line, which was a Las Vegas number, and when each of us tenants called, we could never get an answer or any kind of voice mail of machine to leave a message, no matter what time of day or night we called.

After not beign able to contact anyone we looked "Wilshire" up online and were all in shock about the "claims" and the pictures of his staff, looked so generic, and thought some might possibly be hookers. At this time, the website had a Las Vegas Address listed as their business address and "Lisas" direct line as the business number.

Within a few days from the first time I looked at their website, it all changed, it looked more "professional" the address changed to 18803 Soledad Canyon Rd. Canyon Country, Ca 91351 and now had 877 and 800 numbers.

On May 17, 2009 I printed out some pages from their site and everything was the same.

On May 22, 2009, I was showing a neighbor their page and I couldn't believe it, they added a staff member "Nicole" and the address had changed AGAIN, its now 27013 Langside Ave, Ste C, Canyon Country, Ca 91355 AND has P.O. Box 1067, Land O Lakes, Fl 34639 listed.

I too, looked on the BBB right away. In February 2009 "Wilshire Holding Group" had a D- for their grade. The BBB stated this grade was given because they couldn't verify that the business was doing business with valid and required licenses. They were listed as a Las Vegas business then. To my surprise, when I logged onto BBB May 17 2009, the BBB had NR or No Rating for "Wilshire Holding Group" but amazingly had another business "Wilshire Holding Group INC" listed as one of their "Accredited Businesses" with an A- as the grade and a "business license" # listed in Florida. After researching the BBB, I found that you can't go back and look at past "gradings" and that to be an "Accredited Business" with them, the business listed pays $500 a year to be an "Accredited BBB Business" which is where the money to pay the BBB's employees and expenses comes from, those very businesses that pay to be "Accredited" Now how does that work out? If the BBB was giving "bad" grades to these businesses then that business probably won't pay for their "Accredidation" next year. The BBB has been under scrutney for their business practices for years now. I DON'T TRUST THE BBB after my own experience. Search "Wilshire Holding Group" (no INC) and see what comes back.

After reseaching "Stuart Vener" (who also goes by Vener Stuart) and finding his numerous "real estate" businesses that have been listed at his home address and P.O. Box 1067 in Florida, and ones in Las Vegas Nevada, and the numerous times he's changed his business names, and the numerous times he's been sued, had leins against his properties, and not to mention that he has had "Lingere, Escort and Dating" businesses in He and his son Chris Vener's names in Clark County, Las Vegas (which supports my "hooker" comment from before) he seems to be a CON ARTIST!

He also claims to have real estate license in California and Nevada but if you search

CA Dept of Real Estate-
Department of Real Estate Home Page

1-click on the "Consumers" tab
2-click on "License Status Check"
3-type in "Vener"
4-click find

Click on Vener, Stuart David to see his status;

You see his "Broker" license (#00875431) was in Las Vegas and expired in 2000 and there is NO RECORD of any other type of Real Estate License in CA for him.

In Nevada-
License Lookup
1-click Continue
2-scroll down and in the Last Name box type Vener
3-click search- this takes a few minutes but it really is searching
When its done there will be a list under the search box area
Click on "Vener, Stuart"

You can see the only thing under his name is a BROKER license (#B.0022237.INDV) that expired 4/30/1999

You can click back to the search page and search "Wilshire Holding Group Inc" and you'll see that- "No Results Found for Specified input" is what the search result is, which means they're not doing business legally in Nevada.

I also researched public records on the internet FOR FREE, 2 counties in California where I knew for a fact "Wilshire" had acquired Deeds from and found the results to be very upsetting. In ALL cases, the people who hired "Wilshire" end up having the forecloser process started OR being foreclosed on and losing their property in the end, within just a few months of Deeding their property over to "Wilshire." Here are the links to those counties, take a look yourself-

Tehama County-
TehamaPublic.CountyRecords.com

1-Click "Search Now" then "Official Records thru 00/00/2009"
2-In the "Grantor or Grantee" box type Wilshire Holding Group Inc
3-you can press enter or click search

THEN go back to the search page but this time,
In the "Grantor or Grantee" box type the last name of one of the people "Wilshire" got the Deed from, here are the names of the people from Tehama County-

Palmer, Eugene
Palmer, Jeanie

Valdovines, Jamie
Valdovines, Alysa

Monterey County has a strange web address but it is Monterey Countys Official Website
Monterey County-
Monterey County Recorder's Office

1-on the left side of the page click on Official Records
2-click on Granor/Grantee
3-In the "Grantor or Grantee" box type Wilshire Holding Group Inc
4-click search

THEN go back to the search page but this time,
In the "Grantor or Grantee" box type the last name of one of the people "Wilshire" got the Deed from, here are the names of the people from Monterey County-

Palmer, Jeanie
Torres, Ofelia
Espinoza, Juventino

Notice the order or the dates when different things happen (deed transfers, notice of default, notice of sale) and notice that "Wilshire" has the Deed, but the Notice of Default and Notice of Trustees Sale are ONLY given to the persons who DEEDED their property over to "Wilshire," with "Wilshire" having no financial or legal liabilty to anything! Notice that the Valdovines lose their prorerties, and they are sold at a courthouse auction. I've seen the records and what the highest bid was and "Wilshire" does not buy the property, nor do they owe anything on the property.

And in Clark County Nevada, you'll find that "Wilshire Holding Group Inc" has 2 Lein's and 2 Notice of Default's against them all occurring in 2009 most recent was 3/18/2009. Does this sound like actions that would be taken against a good business to you?

Clark County Recorder-
http://recorder.co.clark.nv.us/extRe...pleSearch.y=14

1-type in "Wilshire Holding Group"
2-hit enter
3-click in the box next to "Wilshire Holding Group Inc" name
4-click detail data

The Requestor is the person taking action, the 1st 2nd 3rd ext... Party, is the person action is being taken against. Document type is pretty obvious what it means. You can see "Wilshire" has a few things going on...

Needless to say, "Wilshire" acquired the properties in Jan 2009 the properties in my neighborhood got Notice of Defaults, AFTER "Wilshire" acquired the Deed, and they are now being sold at the courthouse, the first one, on June 4, 2009, second one on June 10, 2009, and mine will prob be July 10, 2009 because for some reason, the Notice Of Default on my house wasn't filed until 30 days after the one being sold on June 10th so I'm just guessing July 10th will be my houses sale date.

I have much much much more INFO and RESEARCH on Stuart Vener and his past businesses and his partner Fred Claridge. I think I've said A LOT here, but if you want more info, let me know.

Hope you weren't one of the people who got "CONNED" into this "SCAM"

[Robert774]

Radd32 What is your point? As a renter you have no say to whom you pay your rent to unless you can prove this Wilshire is not the property owner. However, since you seem so adept at research go and see if indeed this Wilshire has a legitimate recorded deed. If they do then they are the owners. Period. You have no standing to dispute.

Further, as a renter what is your issue. I surmise you are looking to get our of paying your rent.

Also, all the cites you have do not mention Wilshire specifically. They are all about mortgage foreclosure scams that pertain to the property owners, NOT renters.

Please write back as to exactly what your issue is all about since I have done the homework and their process appears to be legitimate. However and being redundant as a renter you have no standing.

[candria77]

I have also been researching this company, and RADD32, I have this question for you all those links you provided, none of them mention Wilshire. Not one. I am not saying they are not in that group of fraudulent companies, but I could not find anyone that has used them say anything bad about them. Why? I am in the same situation was another poster on this board and I am also looking into using them. I have called the attorney general in the state they reside as well as the state I my home is in, and they checked out clean. I have spoke with 3 attorneys and have gotten mixed reviews from them. What bothers me is that I can't find any concrete examples good or bad for that matter on them. Just people speculating about it. I called three attorneys in my area and got 3 different opinions, 1 good , one OK, and one that was convinced it was a scam. So I have not done anything with this company yet, and I was wondering since you have people who you know who have, what have they said? Are they happy with Wilshire?

[candria77]

We are in the same position and have considered Wilshire as well. Did you go through with the process?

Did you guys end up using them? Why/Why not? I am also considering them.

[candria77]

I just found this out and I think this is what keeps me away from doing it. This is off the BBB website. Stuart Vener is owner of Pacific Properties in CA and I have talked to him and he seems to be proud of his accomplishments in CA during the down cycle in the 1990s. Pacific Properties which is now known as Affirmative Mortgage has an A rating with the BBB. However in the comment section of the BBB this is there:

This company's promotional materials contain a number of misleading statements. The company claims it can help avoid tax liability in situations where property may go into foreclosure. It also claims their services enable the consumer to legitimatly dispute negative information on a credit report by using their services. According to the company, all of this is accomplished by conveying title of the property to them. In January 1995, the IRS issued a press release stating that transfers of property to companies like this will be regarded as a sham and will not be recognized as a bona fide sale for tax purposes. In other words, if income tax comes due as a result of foreclosure or other transfer of property, conveyance of the title to companies like this will not avoid that liability. Most mortgages require that you obtain the permission of the mortgage company before assigning the note to a third party. Failure to comply with that requirement constitutes a default of the note which will result in foreclosure. Any non payment of the mortgage or foreclosure will be reported to the IRS and will appear on the credit report of the original maker of the note. Transfer of title will have no effect on those obligations.

So this is exactly what Wilshire is claiming to do, and there it is in black and white, the documents you get from them don't accomplish anything. You might as well just stop paying the bank and let it go to foreclosure, and save yourself the 1 percent Wilshire charges. It sounds like to me this company just keeps opening up new companies, gets a clean BBB record and then moves on until that name is tarnished. I think time and the government agencies will catch up to Mr. Vener soon, its unfortunate that promises of hope are all bull.

[RADD32]

I just found this out and I think this is what keeps me away from doing it. This is off the BBB website. Stuart Vener is owner of Pacific Properties in CA and I have talked to him and he seems to be proud of his accomplishments in CA during the down cycle in the 1990s. Pacific Properties which is now known as Affirmative Mortgage has an A rating with the BBB. However in the comment section of the BBB this is there:

This company's promotional materials contain a number of misleading statements. The company claims it can help avoid tax liability in situations where property may go into foreclosure. It also claims their services enable the consumer to legitimatly dispute negative information on a credit report by using their services. According to the company, all of this is accomplished by conveying title of the property to them. In January 1995, the IRS issued a press release stating that transfers of property to companies like this will be regarded as a sham and will not be recognized as a bona fide sale for tax purposes. In other words, if income tax comes due as a result of foreclosure or other transfer of property, conveyance of the title to companies like this will not avoid that liability. Most mortgages require that you obtain the permission of the mortgage company before assigning the note to a third party. Failure to comply with that requirement constitutes a default of the note which will result in forclosure. Any non payment of the mortgage or forclosure will be reported to the IRS and will appear on the credit report of the original maker of the note. Transfer of title will have no effect on those obligations.

So this is exactly what Wilshire is claiming to do, and there it is in black and white, the documents you get from them dont accomplish anything. You might as well just stop paying the bank and let it go to foreclosure, and save your self the 1 percent Wilshire charges. It sounds like to me this company just keeps opening up new companies, gets a clean BBB record and then moves on until that name is tarnished. I think time and the government agencies will catch up to Mr. Vener soon, its unfortunate that promises of hope are all bull.

candria77- THANK YOU FOR YOUR RESEARCH AND INFORMATION ON THESE SCAMMERS!! GOOD FOR YOU FOR BEING SMART AND DOING YOUR HOMEWORK!! WOW! That is EXACTLY what I was going to tell you about in my response to you. All the different businesses and/or business STUART VENER has, or has had, that ALL have to do with real estate, foreclosure, second chance mortgages, etc. YOU ARE EXACTLY RIGHT! He keeps changing the name of businesses, (as he has already done with "WILSHIRE HOLDING GROUP INC as can be seen if you search BBB) and keeps changing the states he does business in. BBB (a joke), police, the government, and unfortuanatly, probably alot of vunerable people haven't caught on to this scam STUART VENER has been pulling for years now. That's why I responded to the original question about "WILSHIRE HOLDING GROUP" in hopes that I would stop just one person, hopefully more, from dealing with these people in amy way ever.

Did you happen to go to Clark County, Nevada's public records search? I just dont get how a business claiming to "help" people with foreclosure, has properties being foreclosed on themselves? That doesn't make any sense to me. I could go on about all the information I have found on "STUART VENER" and his "SO CALLED" businesses. I have a pile of stuff printed out from the internet. Everytime I find anything, I print it. I have proof they've changed their webpage (addresses, phone numbers, employees, etc) at least 6 times since February. I know that's not the biggest deal, but its just one of the many peices to the big puzzle, that will one day be put together.

I am a renter, not the owner. But unfortunatly, the owners, for some unknown reason, didn't do their homework on these people, as yo and i did, and got mixed up with "WILSHIRE" now the house I've lived in for 8 years, and 5 others on my street, will be sold at auction next week. And the owners not only delt with "WILSHIRE" to "help" them with their rental properties, but also their own home in another county, which they are losing anyday now too. They paid out major money to this scam, they could've used that money to pay past due payments, but didn't find out they were caught up in a scam until it was to late. The government has FREE help out there for people dealing with foreclosure. The link is
Foreclosure Avoidance Counseling - HUD

I also wanted to respond to your comment about not finding anything mentioning "WILSHIRE" on the government links I posted. The government hasn't stated the name of any business specifically. However, what they do have on their sites is very important - they state the fact that these types of businesses are popping up at an alarming rate, and they've all issued public warnings, and listed the warning signs of "foreclosure relief scams" these are from the Federal Trade Commission website-

Red Flags
If you’re looking for foreclosure prevention help, avoid any business that:

*guarantees to stop the foreclosure process – no matter what your circumstances
*instructs you not to contact your lender, lawyer, or credit or housing counselor
*collects a fee before providing you with any services
*accepts payment only by cashier’s check or wire transfer
*encourages you to lease your home so you can buy it back over time
*tells you to make your mortgage payments directly to it, rather than your lender
*tells you to transfer your property deed or title to it
*offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
*offers to fill out paperwork for you
*pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

If you read the warning signs, then compare the warning signs to "WILSHIRE'S" business practices, you can go down the list and put a checkmark next to each item on the list, except for one - they don't have you make mortgage payments to them, in fact, they tell you not to make payments and that they won't be either and for you to live in the house for "free" as a "house-sitter" for 6 months, because that's how long it will ltake for the "WILSHIRE AQUISITION" to be completed.

All I can say to anyone wanting to know info about "WILSHIRE" or any other business is to do your homework like candria77 and myself have done. You will find that one thing or that one person who commented on a site, such as this, that will help you. I think the first thing people should do is go to government websites and see what they are saying. Then your're not just getting what you might think is other people's opinion's about a business.

The FTC just released another public notice on Fri May 29, 2009, about foreclosure relief scams, that makes 3 public releases on this issue in the month of May, 2009, which is very disturbing. Other government websites with warnings on foreclosure relief scams are-
FDIC
Federal Reserve Board
U.S. Dept of Justice
U.S. Treasury Dept
FHA

If I can answer any other questions for anyone, feel free to ask me

[mdorries]

I too was looking into this. I think I'll order the package and read the fine print. The main concept as stated above is whether they really "assume" your loan. If the Lender agrees to let Wilshire Holdings formally assume your loan. You're OK. If they don't, don't do it. Period.

The Lender is who decides whether you get a 1099 for debt relief or to calls the loan due. And, by the way, in answer to one of the people above, Wilshire Holdings charges a 1% fee (calculated on your existing loan balance) for this "service". Call your Lender and ask some questions - even though WH tells you not to.

No one should be telling you not to contact your Lender in a legitimate deal - should they?

This coming from a Commercial Note Department (loans) Manager with 30 years of real estate experience -

[cmdennis2005]

Hi, I just talked to this company, too. I have six houses in Houston under water and I'd like to offload about three of them. These guys sounded really defensive on the phone (and even hung up on me) when I started asking why they charge money up-front just to email out the documents. Let me know if you go through with this and how it works out. Thanks.

[salemsam]

If you are charged a fee, then this is a scam. You will convey legal title to your property over to Wilshire. They will in turn write your bank and tell them that they (Wilshire) have purchased your property and have assumed your loan. However, to quote from one of their letter to a lender they state that "during the period WHGI (Wilshire) is in possession of the property, we will NOT be making payments". No bank is going to agree to this. The bank does not have a contractral relationship with Wilshire. The foreclosure ad will be in your name and the bad debt credit report will be in your name.

[gjshea]

It looks like it's a decent deal and only costs $100 to find out. I think I'm going to do it. I'll pay the $100 and bring the paperwork to my attorney to have them check the legal part. I wouldn't consider doing anything like this without an attorney though.

If you don't have an attorney and want information on how you can get legal advice for low dollars let me know and I'll show you how to do it. If anyone is on this page and doesn't have an attorney they can call for advice any time they need this service.

[JudyKayTee]

It looks like it's a decent deal and only costs $100 to find out. I think I'm going to do it. I'll pay the $100 and bring the paperwork to my attorney to have them check the legal part. I wouldn't consider doing anything like this without an attorney though.

If you don't have an attorney and want information on how you can get legal advice for low dollars let me know and I'll show you how to do it. If anyone is on this page and doesn't have an attorney they can call for advice any time they need this service.

Call who for advice any time they need this service? Who should we call?

Also - I'd be interested in how to obtain legal advice for low dollars.

[rockman820]

Has anyone tried this yet. Please someone let us know if this thing works or not.

[frasier1977]

I just found this out and I think this is what keeps me away from doing it. This is off the BBB website. Stuart Vener is owner of Pacific Properties in CA and I have talked to him and he seems to be proud of his accomplishments in CA during the down cycle in the 1990s. Pacific Properties which is now known as Affirmative Mortgage has an A rating with the BBB. However in the comment section of the BBB this is there:

This company's promotional materials contain a number of misleading statements. The company claims it can help avoid tax liability in situations where property may go into foreclosure. It also claims their services enable the consumer to legitimatly dispute negative information on a credit report by using their services. According to the company, all of this is accomplished by conveying title of the property to them. In January 1995, the IRS issued a press release stating that transfers of property to companies like this will be regarded as a sham and will not be recognized as a bona fide sale for tax purposes. In other words, if income tax comes due as a result of foreclosure or other transfer of property, conveyance of the title to companies like this will not avoid that liability. Most mortgages require that you obtain the permission of the mortgage company before assigning the note to a third party. Failure to comply with that requirement constitutes a default of the note which will result in forclosure. Any non payment of the mortgage or forclosure will be reported to the IRS and will appear on the credit report of the original maker of the note. Transfer of title will have no effect on those obligations.

So this is exactly what Wilshire is claiming to do, and there it is in black and white, the documents you get from them dont accomplish anything. You might as well just stop paying the bank and let it go to foreclosure, and save your self the 1 percent Wilshire charges. It sounds like to me this company just keeps opening up new companies, gets a clean BBB record and then moves on until that name is tarnished. I think time and the government agencies will catch up to Mr. Vener soon, its unfortunate that promises of hope are all bull.

__________________________________________________ ___________________

Well Claudia and Rad who clearly has a personal axe to grind - that's not entirely accurate - especially with the taxes as they relate to primary residences. I went to the IRS website and found that those debts are forgiven under law as not taxable in almost all cases and have been since 2007:

Don't trust me - Trust a government website that addresses this specific issue:

Home Foreclosure and Debt Cancellation

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

It seems that some people are trying to scare people away from this company - I assume it's personal because they haven't used the company.
__________________________________________________ ____________

What I am looking for is an unbiased opinion from someone that has used the company or actually has discussed it in depth with their attorney instead of just a conference call. I still cannot find anyone with a bad "experience" (other than the renter posting) and would like any insight from someone who doesn't have an axe to grind.

[frasier1977]

PS: this is my first time using this site and as quoted the original poster is candria77 not claudia.

I hope there is help for the people like the original poster - I may be in that situation soon.

[JudyKayTee]

PS: this is my first time using this site and as quoted the original poster is candria77 not claudia.

I hope there is help for the people like the original poster - I may be in that situation soon.

You have oversimplified the Statute you quoted.

"If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here's a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you."

This is a situation which must be reviewed on a case-by-case basis by a Tax Attorney.

(And, yes, Radd has issues.)

[Jodee95]

I was almost going to use this company until I read these entries. They said that THEY would be getting the 1099, NOT ME because they would be the new owners and that they would shortsale the property, no mention was made about foreclosure - I could easily do that myself, I don't need to pay them to do this. They also said that there would be no deficiiency judgment from the way that they do the deal because it is a trustee foreclosure.

[frasier1977]

You have oversimplified the Statute you quoted.

"If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you."

This is a situation which must be reviewed on a case-by-case basis by a Tax Attorney.

(And, yes, Radd has issues.)

__________________________________________________ ___________

True, but it is still possible depending on the situation. This is a quote from the IRS website - it largely depends on whether it's a recourse or nonrecourse loan:

*

Home Foreclosure and Debt Cancellation


Update Dec. 11, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

The amount excluded reduces the taxpayer’s cost basis in the home. More details. Further information, including detailed examples, can also be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

The questions and answers, below, are based on the law prior to the passage of the Mortgage Forgiveness Debt Relief Act of 2007.

1. What is Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

2. Is Cancellation of Debt income always taxable?

Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

* Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
* Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you.You are insolvent when your total debts are more than the fair market value of your total assets.Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended if you believe you qualify for this exception.
* Certain farm debts:If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.The rules applicable to farmers are complex and the assistance of a tax professional is recommended if you believe you qualify for this exception.
* Non-recourse loans:A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.However, it may result in other tax consequences, as discussed in Question 3 below.



3. I lost my home through foreclosure. Are there tax consequences?

There are two possible consequences you must consider:

* Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans.)
* A reportable gain from the disposition of the home (because foreclosures are treated like sales for tax purposes).(Note: Often some or all of the gain from the sale of a personal residence qualifies for exclusion from income.)

Use the following steps to compute the income to be reported from a foreclosure:

Step 1 - Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section. You have no income from cancellation of debt.)

1. Enter the total amount of the debt immediately prior to the foreclosure.___________
2. Enter the fair market value of the property from Form 1099-C, box 7. ___________
3. Subtract line 2 from line 1.If less than zero, enter zero.___________

The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C. This amount is taxable unless you meet one of the exceptions in question 2. Enter it on line 21, Other Income, of your Form 1040.

Step 2 – Figuring Gain from Foreclosure

4. Enter the fair market value of the property foreclosed.For non-recourse loans, enter the amount of the debt immediately prior to the foreclosure ________
5. Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.) ____________
6. Subtract line 5 from line 4. If less than zero, enter zero.

The amount on line 6 is your gain from the foreclosure of your home. If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000 (up to $500,000 for married couples filing a joint return) from income. If you do not qualify for this exclusion, or your gain exceeds $250,000 ($500,000 for married couples filing a joint return), report the taxable amount on Schedule D, Capital Gains and Losses.
__________________________________________________ _____

In any event, I am looking for someone who has any comments after dealing with this group personally please??

[JudyKayTee]

I'm sure there was a point to posting the entire site. Why not just post the applicable parts?

I'm certainly not going to read all of this, particularly when there are no quotation marks and I don't know where the section ends and you begin.

I find nothing to verify your statement "I went to the IRS website and found that those debts are forgiven under law as not taxable in almost all cases and have been since 2007."

[jlmajor40]

I'm in a desperate situation like some of you who have written above and decided to contact Wilshire Holdings for assistance. As of today, I have not returned their call because of friend of mine directed me to this page. I've read all of your reviews and I have to say even though I initially thought this process was too good to be true... I feel it is. I can do bad by myself I don't need more trouble by another company. I will keep this page on my favorites to see if anyone has gone through the process with Wilshire Holdings 100% and will be able to write about it (good or bad). Thanks everyone for your reviews.