It’s April 18.

Typically, the date doesn’t strike fear in the hearts of ordinary Americans. Today is different, however, because it (not April 15) is the deadline to file individual tax returns.

And for many, 2010 could have been financially difficult, including defaulting on a mortgage loan and losing a home to foreclosure and/or short sale.

The good news is that the  Mortgage Debt Relief Act, passed in 2007 and expiring in 2012, protects most distressed homeowners from being responsible for additional liabilities.

Most, but not all.

CNN.com lays out the exceptions to the rule. Read about them after the jump:
Read the rest of this entry »

Foreclosure.com deals with all forms of distressed real estate, which includes bankruptcy home loans and houses.

Bankruptcy filings, especially those that fall under Chapter 7 of the bankruptcy code, can sometimes include real estate for sale if it is not exempt. An individual will file for bankruptcy if he or she is unable to pay his or her debts with creditors and a judge will liquidate his or her assets (possibly) to pay them off.

Being in the business we are in, Foreclosure.com has access to a lot of bankruptcy-related information throughout the nation. We decided to take a quick look back over the last six months and see which states possessed the most bankruptcy filings.

Here are the top 10:

Read the rest of this entry »

Easy come, easy go.

The big spending Teresa Giudice, who stars on “The Real Housewives of New Jersey” reality show, will be forced to auction off many of her worldly possessions as part of a bankruptcy filing, according to People.com.

Televisions, sofas, chairs, chandeliers, as well as a boat and jet ski — even a suit of armor — are scheduled to hit the block at their Towaco, N.J., mansion on Aug., 22, 2010, at 12 p.m. ET. To check out a complete list of available items click here.

Giudice, who was looking for a “fresh start” after claiming a downturn in the economy crippled the family finances, is currently appealing the bankruptcy auction.

From her attorney, Jim Kridel:

“Obviously we have objections to what they’re trying to do…. I don’t think Teresa is happy seeing all her belongings displayed on the Internet. Clearly they are under the microscope because they are famous.”

If the auction goes off as planned, interested bidders are required to present a $300 refundable deposit at the time of registration. In addition to their possessions, the six-bedroom, five-bathroom “rococo chateau” is for sale for a little less than $4 million.

It’s no secret that foreclosures often offer buyers and investors significant discounts on home purchases.

Today, the brainiacs at Massachusetts Institute of Technology (MIT) and Harvard proved it with 12 years of research, revealing that “foreclosure reduces the value of a house by an average of 27 percent.”

MIT economist and study author, Parag Pathak, was surprised with the “large” finding.

Here’s a snip:

“It’s not surprising that there is a discount due to foreclosure. But it is surprising that it’s so large.”

Probate homes, which are those sold after the death of an owner, save buyers about 5 to 7 percent on average. Bankruptcy homes, meanwhile, reduce prices by about 3 percent.

Keep in mind that these are all averages, meaning that you can likely score even greater deals with a quick search on Foreclosure.com.

But we doubt that you would mind nearly a 30 percent discount (at the very least) on your next home purchase.

For more on background on Baldwin’s bankruptcy and potential foreclosure action click here. To learn more about “The Restoration of Stephen Baldwin” click here.

(Tip via Zillow.com)