NY Times | Foreclosure Settlement – When Banks Erase a Debt That Isn’t There

“It’s bad enough that these letters are inaccurate. But even worse are the tax problems that they may create for people like Ms. Esposito. In most cases, the Internal Revenue Service considers debt that is forgiven to be taxable income. One exception occurs in bankruptcy; when a debt is discharged, it is not taxable.”


How to Erase a Debt That Isn’t There

GREETINGS, unhappy homeowners! Here’s some wonderful news:

“We are canceling the remaining amount you owe Chase!” says a letter that JPMorgan Chase sent recently to thousands of home loan borrowers. “You are approved for a full principal forgiveness of your Home Equity Account,” says another, from Bank of America.

Jackie Esposito, of Guilford, Conn., got a letter like that. But she wasn’t elated — because she doesn’t owe the money anymore. She and her husband filed for bankruptcy three years ago. The roughly $64,000 they owed Chase has been legally wiped out.

What’s going on?

Be sure to check out the rest here…



3 Responses to “NY Times | Foreclosure Settlement – When Banks Erase a Debt That Isn’t There”
  1. bobbi swann says:

    I especially liked the comment from the author after contacting the agency in charge of monitoring these so-called credits from the banking institutions from the nationwide settlement who stated ““We will review compliance with this requirement as we will with all of the consumer relief requirements,” Mr. Smith said, “through review of the corporate records relating to such transactions.”

    The author’s response: Good Luck with that!

    hahahaha! Knowing that they have done such a superior job of reviewing everything else about this whole ponzi scheme!

  2. Ali says:

    They are just laying the groundwork for us, How can they forgive debt that never existed? I would like to see how this lame attempt to to screw homeowners works out. It won’t!

  3. OMG! More Double Talk, More Deception, More Money for the Banks!! Business A Usual!!

Leave a Reply