RENSE.com

By J. Speer Williams
2-23-10
With the foul mixture of adjustable rate mortgages, low down payments, unqualified loans, and liar loans, where potential homebuyers could not even verify that they had jobs or adequate funds to buy a house, the private International Banking Cartel inflated their US housing bubble. Then, the Cartel violently burst their bloated, thin-walled, and ephemeral bladder of toxins, they had so carefully pumped with hype, lies, and wicked intentions. Now, the Cartel is delivering their coupe de grace on some defaulting home buyers; they are siccing their private collection agency, the IRS on many of the homeless and jobless of America.
Many beleaguered, debt-ridden, jobless Americans have lost, or are about to lose, what they had left of the great American Dream: owning their own home. Lending institutions, all over the US are foreclosing on our hopes and dreams for ourselves and children with malice aforethought. These premeditated crimes of the banksters will not, however, go unrewarded by the US government, with increased income taxes, sales and value-added taxes, banker bail-outs, and “stimulus” packages, all paid for by those who are living the American Nightmare – a dark dream of intense, inescapable fear, horror, and distress.
After losing their homes to the foreign controlled Banking Cartel, many Americans will be assaulted with unexpected income taxes: Enter the Banking Cartel’s collection agency – the IRS.
 With such stress from Cartel banks, and their IRS collection agents, some Americans have mentally snapped; and understandingly, many more may snap. Terry Hoskins, from Ohio, bulldozed his home, thus denying its full value to the bank that refused to work with him on a reasonable restructured payment plan.
The IRS functions through fear; but, the Cartel’s collection agency is pushing some Americans into madness. Joe Stack, of Austin, Texas, was apparently so thrust to the upper edge of a steep declivity into insanity, by the IRS, that he set fire to his home, thus leaving the Cartel a largely empty lot, littered with some burnt debris. Then, Mr. Stack decided to give his own pounds of flesh in exchange for some from those who collect money for their Cartel masters: He flew a light aircraft into an office building that housed some IRS offices. But soon many of us will have some idea of the frustration Messrs. Stack and Hoskins felt.
 Jobless Americans, who lose their homes to bank foreclosures, may be in for yet a greater shock than losing their job and home, with something banks call a “deficiency judgment,” which can haunt former home buyers for years. Such a “judgment” is the difference between what a home buyer owed on their mortgage, and what the bank sells the auctioned house for during a very depressed housing market.
A board-certified real estate attorney in West Palm Beach, FL, Richard Zaretsky said, “Once they [banks] have a judgment, they can pursue you anywhere. They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.”
In an attempt to save their credit ratings, and stay out of jail, some besieged home buyers, surrounded with aggressive predators, will allow real estate salespeople to talk them into doing “short sales.” A short sale is a made-up name for lending institutions agreeing to selling de-faulted properties to qualified buyers, for usually far less than the mortgaged amounts, rather than foreclosing on them.
A short sale is potentially doubled-barrel trouble: Unless a lending institution releases a de-faulted borrower from any further financial obligation, they can pursue such a former home-buyer for years (usually 20 years in most states) for the difference in the original mortgage and the short sale selling price, plus mounting interest costs. But wait, the horror gets even more horrible.
 If the bank discharges the debt, they will “kindly” provide the IRS, and the defaulted home buyer, a statement of earnings, called a 1099-C, which could be far worse than the bank hounding someone with a deficiency judgment for 20 years. Depending on the amount of the discharged debt, a person could be struck with hundreds of thousands of dollars in taxable income.
 Please note, that thanks to our policy-makers in Washington, the issuance of a 1099-C is a statement of ordinary income, which precludes the favorable capital gains provisions, that are taxed at lower rates. The Mortgage Debt Relief Act of 2007 may, however, provide some assistance in such cases, but would require the help of an attorney … if one can afford one.
 If you are insolvent (your liabilities exceed the fair market value of your assets) there might not be a tax liability arising from a Form 1099-C, if you file a Form 982 and attach it to your Form 1099; but best to check with your accountant.
 “Our” government has established such a 3rd-world police state, we all need accountants and lawyers to try to stay out of jail, with ever dwindling incomes to be able to afford such protection. 

   

J. Speer-Williams
 
jsw4@mac.com