Author Archives: John Reynard III, Esq., LL.M.

Estate Planning in a Depressed Economy

By John Reynard III, Esq., LL.M. | Published: August 24, 2011

A depressed portfolio can provide many estate planning opportunities.  In addition, depressed real estate holdings can also enable taxpayers to lessen future estate and gift tax liabilities. For example, one possible option for real estate is a Qualified Personal Residence Trust (QPRT).  A QPRT may offer significant tax advantages while enabling a homeowner to remain [...]

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California State Legislature Passes SB 458

By John Reynard III, Esq., LL.M. | Published: August 24, 2011

California’s state assembly has recently passed Senate Bill 458.  At this early stage, it appears that one of the main goals of this bill is to allow short sales to proceed without allowing lenders to maintain collection rights after the sale. The California Association of Realtors stated in a release on July 15, 2011: “SB [...]

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Loan Modifications May Result in Taxable Income

By John Reynard III, Esq., LL.M. | Published: March 15, 2011

There are thousands of homeowners who are having difficulty making their monthly mortgage payments. As a result, many homeowners are seeking to have their loan modified in order to have a lower and more affordable monthly payment. In an effort to decrease foreclosures, the United States government has initiated programs aimed at providing incentives to [...]

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Chapter 13 may allow you to get rid of your 2nd mortgage!

By John Reynard III, Esq., LL.M. | Published: March 7, 2011

Properties in San Diego and Orange County have decreased in value in the last few years.  For homeowners who have 2nd mortgages and whose homes have decreased in value, there may be an opportunity for you to have your 2nd mortgage (or 3rd if you have one) “stripped” of its security interest in your home. [...]

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Bankruptcy Law

By John Reynard III, Esq., LL.M. | Published: March 3, 2011

Bankruptcy is a Federal law enacted by Congress, designed to help consumers and businesses who are having financial difficulties and are unable to pay their debts.  Bankruptcy provides Court-ordered protection from creditors and an opportunity to either eliminate or restructure most debts.  Bankruptcy stops harassment from creditors and bill collectors. If you qualify under Federal [...]

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Description of Form 1099-C and Canceled Debt

By John Reynard III, Esq., LL.M. | Published: February 27, 2011
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Timing for Filing Bankruptcy

By John Reynard III, Esq., LL.M. | Published: February 25, 2011

Let me preface this blog by saying that bankruptcy law regarding debt discharge is extremely complicated and we suggest you contact an experienced bankruptcy attorney to discuss these laws.  Do not rely on this as legal advice but as a suggestion to seek the advice of an attorney when faced with these types of issues. [...]

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Capital Gain Tax Treatment for Non-Recourse Loans

By John Reynard III, Esq., LL.M. | Published: February 24, 2011

The Cancellation of Debt Provisions found in the Mortgage Debt Relief Act of 2007 may not apply to Capital Gains! Tax season is right around the corner and with it many questions from individuals who have recently short sold a house or have been foreclosed on.  When former President Bush signed the Mortgage Debt Relief [...]

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Tax Results of Foreclosure and the Cancellation of Debt

By John Reynard III, Esq., LL.M. | Published: February 23, 2011

What is debt cancellation and why is it such a common theme in today’s real estate and tax world? In the current economic climate, thousands of homeowners are receiving reports from lenders showing large income amounts as a result of the Cancellation of Debt.  January 31 was the date by which lenders were obligated to [...]

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Chapter 13 Bankruptcy

By John Reynard III, Esq., LL.M. | Published: February 15, 2011

Many homeowners looking to save a home that is in foreclosure look to filing a Chapter 13 bankruptcy.  Filing Chapter 13 can be an effective way to give a homeowner an opportunity to halt foreclosure proceedings and enter into a repayment plan with a lender. There are many requirements that need to be met in [...]

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Insolvency, Bankruptcy, and the Mortgage Forgiveness Debt Relief Act of 2007

By John Reynard III, Esq., LL.M. | Published: February 1, 2011

This is a brief description of cancellation of debt income and some of the tax provisions that are available to minimize or eliminate this type of tax.  Be aware that this is a very high level discussion and should not be relied on for your individual situation.  However, our firm is available to provide a [...]

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Strategic Defaults

By John Reynard III, Esq., LL.M. | Published: January 27, 2011

What is a “Strategic Default”? As individuals face increasing mortgage payments and decreasing home values, many home owners are beginning to look into the possibility of defaulting on a mortgage as an available option. A strategic default essentially is a decision made by a borrower to stop making payments on a debt even though s/he has the [...]

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Bankruptcy Planning and Short Sales

By John Reynard III, Esq., LL.M. | Published: January 19, 2011

Is bankruptcy the best option for you?  When faced with a looming foreclosure many people rush to file bankruptcy.  Although this may be an effective way to put a temporary halt on the bank’s ability to sell your house, it is not always the best decision when factoring the rest of your financial scenario. First [...]

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Bank Lost Your File?

By John Reynard III, Esq., LL.M. | Published: December 20, 2010

Why is it that so many files seem to get lost by the banks as they process paperwork these days?  It seems as if it has become the norm for a bank to lose a homeowner’s file.   If you have had an experience with a bank losing your file please send us a comment [...]

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Canceled Debt and Form 1099-C

By John Reynard III, Esq., LL.M. | Published: December 14, 2010

(See our video on this topic here.) The IRS describes canceled debt accordingly: “Generally, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income.  A debt includes any indebtedness: For which you are liable, Subject to [...]

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Should I Incorporate?

By John Reynard III, Esq., LL.M. | Published: December 9, 2010

Frequently clients ask if they should incorporate.  And if so, what type of entity should they choose.  There are many benefits to incorporating your business.  Some of the benefits of incorporating are: Personal Asset Protection Credibility in the Marketplace Marketing purposes Protect the name of your business Perpetual Existence Tax Purposes Raising Capital However, here [...]

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Deficiency Judgments

By John Reynard III, Esq., LL.M. | Published: December 8, 2010

What is a deficiency judgment?  The statutory definition of a deficiency judgment is: “a judgment against the trustor for the difference between the unpaid balance of the secured debt (plus expenses) and the amount produced by the sale or the fair value of the security, whichever is greater.” (California Code of Civil Procedure §726(b)). Now [...]

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Halt In Foreclosures

By John Reynard III, Esq., LL.M. | Published: December 8, 2010

Over the past few months, banks have admitted that hundreds of thousands of homes may have been foreclosed improperly and not according to the required legal procedures.  Many major lenders have halted foreclosures in 23 states, Bank of America has stopped all foreclosures, and attorneys general from all 50 states are escalating efforts to stop [...]

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Bankruptcies and Home Mortgages

By John Reynard III, Esq., LL.M. | Published: November 29, 2010

A common question today is whether or not bankruptcy will solve a homeowner’s foreclosure issues.  Increasingly, bankruptcy is a tool that advertisers on television and radio tout as a method of saving one’s home. There are different factors that enable your attorney to determine whether or not bankruptcy is a viable option for you.  Some [...]

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Loan Modifications and Bank Stories

By John Reynard III, Esq., LL.M. | Published: November 28, 2010

Please share briefly your story or comment on an experience you had while attempting to get a loan modification. Some examples that I am curious about are: Descriptions of customer service agents who gave you advice or information that ended up being harmful. Lost files that had to be repeatedly resent or resubmitted. Homes being [...]

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