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Recently there have been articles in quite a few significant newspapers, for instance articles and blogs from the Wall Street Journal, that have mentioned
that the IRS is expanding their assistance programs to assist taxpayers who’re having difficulties with tax bills due to the current financial upheaval. Making use of a
new form (IRS Form 1127A) as a beginning point, the latest tax relief plan from the IRS is named the Fresh Commence Plan and though it was released
back in 2008, the agency has added new selections for taxpayers to make use of to pay their bills.

The characteristics added for the Fresh Begin system are focused at 2 regions: relief from penalties and broadened installment payment options. The penalty relief
portion is focusing on the unemployed and it grants a 6 month grace period for paying taxes to everyone who has been out of work for far more than 30 consecutive
days in 2011 or 2012, as much as April 17, 2012. If the specifications are met, this grace period indicates that the taxpayer won’t need to pay taxes or penalties for

2011 till October 12, 2012. The identical grace period and solutions apply to self-emplyerd workers who had their business enterprise imcome fall by far more than 25% in 2011.

You’ll find some restrictions on this program. Joint filers with incomes over $200,000 or single filers with incomes over $100,000 will not be eligible for this solution
and everyone with a tax bill of more than $50,000 in 2011 will not be eligible. This benefit is not automatic, the taxpayer wants to file IRS Form 1127A and function
with all the IRS to qualify.

Permitting taxpayers to setup additional streamlined installment plans is also a component of with the new Fresh Start off plan. The idea is always to make it a lot easier for taxpayers
to catch up on their back taxes and permitting the government to collect higher percentages of taxes due. Until this new program was released, the limit on streamlined
installment plans was $25,000 in taxes owed. That has been doubled to $50,000 and will not demand a economic statement. This indicates that the taxpayer who owes
much less than $50,000 for the IRS can enter into a payment program for as much as 6 years. Interest nevertheless accrues throughout the re-payment period but penalties happen to be decreased.
To assist ensure re-payment the IRS may perhaps need you to use direct payments until the debt is settled.

Nobody likes to spend taxes and owing back taxes is often much more nerve-racking. The combination of a world-wide financial slowdown as well as the want for much more tax income
has developed a situation exactly where the selections readily available for revenue tax relief are additional numerous and less complicated to utilize. Operating using a qualified tax skilled
is commonly a ought to after you are requesting tax relief for substantial amounts of taxes owed.

Source: http://www.articlesbase.com/finance-articles/new-tax-relief-options-from-the-irs-5733670.html

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Incomes are flat or declining, living and medical expenses are higher than ever and few income boosting alternatives exist.  Even those who have heard about Reverse Mortgages may be unsure about how they work or what questions to ask. As they search for information, they often turn to their financial institution for guidance and information. By becoming familiar with the product, you can be an even more valuable resource to your clients providing them with income supplementing alternatives to drawing down assets.  

What is a Reverse Mortgage?

A Reverse Mortgage is a special type of loan that allows a homeowner to convert a portion of the equity in their home into cash they can access. The funds are not taxable to the homeowner and typically don’t interfere with eligibility for Social Security or Medicare benefits. (However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits.) The customer retains title to the home as well as right to any appreciation in home value when the loan terminates after it is paid off. The loan remains in force until the last titleholder dies, permanently leaves the home or sells the property; the borrower can’t be forced to sell or move by the lender. The loan may be repaid at any time. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Instead of putting further pressure on an already stretched budget, a Reverse Mortgage can free a senior homeowner of monthly debt obligations.

Most Reverse Mortgages today are Home Equity Conversion Mortgages (HECMs) and are FHA-insured and guaranteed. Because HECMs are subject to FHA lending limits, proprietary products have also been developed to help homeowners with properties in excess of the FHA lending limits.  

Who qualifies for a Reverse Mortgage?

All titleholders must be 62 or older and own a home with some equity. There are no income or credit qualifications. Existing mortgages or liens must be paid off, but are often paid with proceeds from the Reverse. The homeowner must also remain current on insurance and property taxes, but these can also be paid with proceeds from the Reverse.

How can a borrower use the money?

The funds can be used for any purpose from making ends meet to living retirement dreams.  The top reasons for funds used given typically by borrowers are:

Paying off debts, primarily mortgage and credit cards

Home repairs and remodeling

Living expenses

Travel

Health care or long-term care

Easing the financial burden on children

Education

Hobbies

Escalating property taxes

The amount available depends on the borrower’s age, the value of the home, interest rates and local FHA lending limits. Older borrowers can receive a higher percentage of their equity than younger borrowers. Funds can be received in a lump sum, a monthly payment or a line of credit.

What are the costs?

As with most any loan product, there are origination fees and closing costs, but they can be paid from the proceeds of the Reverse Mortgage. HECM loans also have a charge for the FHA’s Mortgage Insurance Premium (MIP). There are usually no out-of-pocket costs to the borrower.

What consumer protections are in place?

Reverse Mortgages are non-recourse consumer loans – the loan payoff can never exceed the value of the home. To get a Reverse Mortgage, the customer must attend a mandatory counseling session and review their financial situation with a trained, professional Reverse Mortgage counselor. Many of the counselors are certified by the AARP. The counselor ensures that they understand the transaction, the costs and their other alternatives.

If you have questions regarding Reverse Mortgages or how they may provide life-changing benefits to your clients, contact MLS Reverse Mortgage at 1-888-888-4834 or www.mlsreversemortgage.com.

Fixed Rate Reverse Mortgage

MLS Reverse Mortgage