Greetings from Bill Snell

Thank you for considering the professional services offered by Together Orlando.  Here is a brief introduction to who we are and what we do.  It is our desire to serve you during tough times.

Together Orlando provides cost effective professional services to individuals and families to address the current financial mortgage crisis in Central Florida.  Our goal is simple and straightforward – to provide each homeowner impacted by the mortgage and housing crisis with the knowledge necessary to determine what their options are, as well as to lay out a plan to  strategically implement that knowledge in a manner that finds real solutions to avoiding foreclosure.

Did you know that 1 in 6 homeowners in America owe more than their home is worth?  If you have found that you are upside down in your home, perhaps facing delayed or missed mortgage payments, and maybe even the loss of income, things can seem bleak and hopeless. 

But, you are not alone!  We understand your hardship, and truly want to help.

If the bank is threatening to foreclose on your home –  it’s time for you to act!  Unfortunately, time is not on your side.  You should not just “wait and see” what happens.

Inaction can result in foreclosure, judgment of deficiency, severely damaged credit, and of course the loss of your home.

Together Orlando was founded for a time such as this. 

While there are many individuals and organizations around who make wild claims of success charging significant up front fees  and taking advantage of other’s economic crises, it was determined that there needed to be a company  that would truly come along side and offer you, the homeowner, vital information and professional services to guide you through your options while helping to avoid unnecessary delays and expense.

We never charge upfront fees for our services – never!  The fees we do charge are fully disclosed and are often recovered at closing and is often paid by the lender – not you the homeowner.  Chances are that you already feel like you’ve been beaten up financially and emotionally.  You don’t need someone else to add to your predicament.  The bottom line is… if we do not perform, we do not get paid. 

Call today for a free financial analysis and information concerning our professional services proven to help stop foreclosure…(321) 438-8018.

Remember – our goal and mission is to stop foreclosures in Central Florida while helping to restore the financial well-being for everyone seeking our help and services.

Call today – 321-438-8018, or email bill.snell@togetherorlando.com 

Praying for you,

Bill Snell – owner

Message from Paul Lechner

First let me say that if you’re facing foreclosure I believe it’s important to take responsibility for the situation and seek to resolve it as quickly as possible.

Many companies and individuals state that they can “keep” you in your home for months, if not years at a time without making payments to the mortgage company.  Although this is true and happens on a regular basis, I do not recommend such a practice.

Regardless of how you ended up in foreclosure I believe it is in your best interest to quickly work through the situation and get you and your family back in the habit of paying for your housing OR in cases where you cannot afford housing, look to move in with a family member or friend.

There are some exceptions.

1. You are actively pursuing a Short Sale
2. You are actively pursuing a Loan Modification
3. Your lender refuses to work with you

Prolonging the foreclosure process simply adds to the stress in your life and in most cases creates an overwhelming sense of bondage for the individual and their family.  Many people who stop paying their mortgage start or continue to exhibit poor spending habits.

Foreclosure is like falling off a horse, the decision whether or not to get back on and ride again has a lasting impact on your confidence.  How long do you want to live in a world where you avoid the telephone, the mailbox and in general, people?  Wondering if someone is going to serve you papers or if a notice will be posted in the local paper is enough to drive anyone crazy.

So I say without hesitance to get back up, dust yourself off and start riding again.  There are better days ahead but you will not experience them until you face your situation head on.

Getting Started

1. Create a Budget
2. Know what “Your Number Is”.  What it takes to make ends meet.
3. Make sure your housing related expenses are are in line with the spending plan calculator’s recommended budget found here.  (this includes, mortgage/rent, utilities, lawn care and anything else related to your home).
4. Unless you are experienced in loan modifications or short sales, hire a professional to assist you with the process.  This will save you untold amounts of time and money in the long run (if your loan is serviced by Fannie Mae or Freddie Mac you may be entitled to up to $5,000 in relocation assistance).

All the best,

The Mortgage 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, qualifies for the 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 does not 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.

More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.

The following are the most commonly asked questions and answers about The Mortgage Forgiveness Debt Relief Act and debt cancellation:

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 normally 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.

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:

• Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.
• 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.
• 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.
• 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.

These exceptions are discussed in detail in Publication 4681.

What is the Mortgage Forgiveness Debt Relief Act of 2007?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17). Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence.

What does exclusion of income mean?
Normally, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. But the Mortgage Forgiveness Debt Relief Act allows you to exclude certain cancelled debt on your principal residence from income. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

Does the Mortgage Forgiveness Debt Relief Act apply to all forgiven or cancelled debts?
No. The Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. In addition, the debt must be secured by the home. This is known as qualified principal residence indebtedness. The maximum amount you can treat as qualified principal residence indebtedness is $2 million or $1 million if married filing
separately.

Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?
Debt used to refinance your home qualifies for this exclusion, but only to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. For more information, including an example, see Publication 4681.

How long is this special relief in effect?
It applies to qualified principal residence indebtedness forgiven in calendar years 2007 through 2012.

Is there a limit on the amount of forgiven qualified principal residence indebtedness that can be excluded from income?
The maximum amount you can treat as qualified principal residence indebtedness is $2 million ($1 million if married filing separately for the tax year), at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982 and the detailed example in Publication 4681.

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return.

Do I have to complete the entire Form 982?
No. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.

Where can I get this form?
If you use a computer to fill out your return, check your tax-preparation software. You can also download the form at IRS.gov, or call 1-800-829-3676. If you call to order, please allow 7-10 days for delivery.

How do I know or find out how much debt was forgiven?
Your lender should send a Form 1099-C, Cancellation of Debt, by February 2, 2009. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.

Can I exclude debt forgiven on my second home, credit card or car loans?
Not under this provision. Only cancelled debt used to buy, build or improve your principal residence or refinance debt incurred for those purposes qualifies for this exclusion. See Publication 4681 for further details.

If part of the forgiven debt doesn’t qualify for exclusion from income under this provision, is it possible that it may qualify for exclusion under a different provision?
Yes. The forgiven debt may qualify under the insolvency exclusion. Normally, you are not required to include forgiven debts in income to the extent that you are insolvent.  You are insolvent when your total liabilities exceed your total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982. Publication 4681 discusses each of these exceptions and includes examples.

I lost money on the foreclosure of my home. Can I claim a loss on my tax return?
No.  Losses from the sale or foreclosure of personal property are not deductible.

If I sold my home at a loss and the remaining loan is forgiven, does this constitute a cancellation of debt?
Yes. To the extent that a loan from a lender is not fully satisfied and a lender cancels the unsatisfied debt, you have cancellation of indebtedness income. If the amount forgiven or canceled is $600 or more, the lender must generally issue Form 1099-C, Cancellation of Debt, showing the amount of debt canceled. However, you may be able to exclude part or all of this income if the debt was qualified principal residence indebtedness, you were insolvent immediately before the discharge, or if the debt was canceled in a title 11 bankruptcy case.  An exclusion is also available for the cancellation of certain nonbusiness debts of a qualified individual as a result of a disaster in a Midwestern disaster area.  See Form 982 for details.

If the remaining balance owed on my mortgage loan that I was personally liable for was canceled after my foreclosure, may I still exclude the canceled debt from income under the qualified principal residence exclusion, even though I no longer own my residence?
Yes, as long as the canceled debt was qualified principal residence indebtedness. See Example 2 on page 13 of Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

Will I receive notification of cancellation of debt from my lender?
Yes. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form.

What if I disagree with the amount in box 2?
Contact your lender to work out any discrepancies and have the lender issue a corrected Form 1099-C.

How do I report the forgiveness of debt that is excluded from gross income?
(1) Check the appropriate box under line 1 on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to indicate the type of discharge of indebtedness and enter the amount of the discharged debt excluded from gross income on line 2.  Any remaining canceled debt must be included as income on your tax return.

(2) File Form 982 with your tax return.

My student loan was cancelled; will this result in taxable income?
In some cases, yes. Your student loan cancellation will not result in taxable income if you agreed to a loan provision requiring you to work in a certain profession for a specified period of time, and you fulfilled this obligation.

Are there other conditions I should know about to exclude the cancellation of student debt?
Yes, your student loan must have been made by:

(a) the federal government, or a state or local government or subdivision;

(b) a tax-exempt public benefit corporation which has control of a state, county or municipal hospital where the employees are considered public employees; or

(c) a school which has a program to encourage students to work in underserved occupations or areas, and has an agreement with one of the above to fund the program, under the direction of a governmental unit or a charitable or educational organization.

Can I exclude cancellation of credit card debt?
In some cases, yes. Nonbusiness credit card debt cancellation can be excluded from income if the cancellation occurred in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See the examples in Publication 4681.

How do I know if I was insolvent?
You are insolvent when your total debts exceed the total fair market value of all of your assets.  Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.

How should I report the information and items needed to prove insolvency?
Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation.  You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.

To claim this exclusion, you must attach Form 982 to your federal income tax return.  Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation.  You must also reduce your tax attributes in Part II of Form 982.

My car was repossessed and I received a 1099-C; can I exclude this amount on my tax return?
Only if the cancellation happened in a title 11 bankruptcy case, or to the extent you were insolvent just before the cancellation. See Publication 4681 for examples.

Are there any publications I can read for more information?
Yes.
(1) Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals) is new and addresses in a single document the tax consequences of cancellation of debt issues.

(2) See the IRS news release IR-2008-17 with additional questions and answers on IRS.gov.

Everytime I listen to God of This City, I am encouraged and reminded of His greatness and power.  Though times may be tough for you right now, new days are ahead.  We’ll move forward together in faith and confidence to embrace each and every day.

I believe that’s what Together Orlando is all about!

These hardships have in turn created an environment where people have become disillusioned and find themselves “paralyzed” from taking the necessary actions to overcome their hardship.  Adding to this tyranny are hosts of other life altering issues that can arise.  Issues like self doubt, depression, isolation and relational disharmony are but some of the most common ones that people are facing.

At its most simplistic level Together Orlando is focused on restoring the confidence and financial well being of people who are experiencing financial hardship.  By extension, as we partner with other business leaders and owners who share a common vision for restoration, the very heart of this city can be restored.  We believe it is in this very moment that Together Orlando has been called to be the catalyst for bringing the people of  Greater Orlando back to financial health.

The Products and Services of Together Orlando

Together Orlando is focused on restoring the confidence and financial well being of people who are experiencing financial hardship.  By partnering with other business leaders and owners who are also focused on this common calling,  Together Orlando can be the catalyst for restoring the communities that are comprised of the Greater  Orlando area, hence the name, Together Orlando.

Financial Assessment

The first step in the restoration process is to understand what it takes to make ends meet.  We accomplish this by completing a financial assessment with the client.  The financial assessment is comprised of a budget and a spending plan.

Focus is placed on three categories: Housing, Auto and Debt.   Once the budget and spending plan have been completed an action plan is put in place.

Save My House

If the homeowner has experienced a hardship and has recovered financially, or is on the way to recovery, Together Orlando can suggest various programs for you to seek to negotiate a loan modification on your own.  In few instances a principle reduction may be possible.

Loan modifications or restructuring of loans are many times offered for free by the lender and also by the US Government.  However, the success rate for a permanent loan modification that makes financial sense is absolutely dismal.

Sell My House

If the individual or family has not recovered from their hardship, is behind on the mortgage and does not have equity in the property it may be determined by the financial assessment that saving their home is not a viable option, Together Orlando will work with the homeowner to list and sell the home by means of a short sale. 

Together Orlando is successful in short sales due to cash offers and professional negotiations directly with the lender to purchase the property for less than what is owed.

This process will ensure that the homeowner avoids foreclosure and will also provide a window of opportunity for the individual or homeowner to save money needed to move and relocate.  In certain circumstance the homeowner can receive up to $5,000 in relocation assistance.

Debt

Homeowners who have experienced a hardship and have fallen behind on their payments to credit card companies may be eligible for a debt consolidation or debt settlement.

An analysis of debt is determined by the Financial Assessment and a copy of the homeowner’s credit report.  After the analysis has been completed and it is determined that consolidation or a settlement of the debt is the appropriate action to be taken, a representative of Together Orlando will work with the homeowner and lenders to come to an agreed resolution.

Affiliated Business Partners

Many times after meeting with homeowners it is determined that additional resources are necessary to help get them back on track.  In addition to the core service offerings, Together Orlando has developed a network of affiliated business partners who share in our vision of restoring the confidence and financial well being of people who are experiencing a financial hardship.

It is important that our affiliated business partners share similar values as Together Orlando.  Each business partner has been interviewed and our values and principles have been shared with them.  Partners who share our vision, values and principles have been added to our network of approved Affiliate Business Partners.