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Foreclosure Defense Florida


IRS-mortgage-SecuritiesMost of the mortgages that are currently being foreclosed on were transferred into Real Estate Investment Conduits (REMICs).   As we’ve been saying for   years…and as the courts are now proving for certain years after the fact…most of these loans were not transferred into the trusts properly or at all.   Most of the trusts violated just about every rule and law they could think of and while courts have heretofore been unconcerned with these transgressions, a key element is the fact that violating these rules can cause the trust to lose its favorable tax treatment under the IRS REMIC rules.   From the Reuters story:

In a brief statement in response to questions from Reuters, the agency said: “The IRS is aware of questions in the market regarding REMICs and proper ownership of the underlying mortgages as set out in federal tax law, and is actively reviewing certain aspects of this issue.”

Now, the IRS cannot really enforce the rules against these trusts….the penalties and the payouts would be too huge and they are too big to fail, but the fact that it is now formally being investigated shows that the issue is real…