Times are tough, even for an IRS investigator in charge of recommending mortgage fraud cases for prosecution. After testifying in a federal court against a variety of mortgage fraud defendants, one Denver-area IRS agent decided to open up to a reporter about an investigation into whether she herself had committed mortgage fraud. Back in December of 2009, the IRS agent and her husband filed for bankruptcy protection. They then proceeded to live in a $500,000 home in Greeley, Colorado, without making mortgage payments for two years.
The IRS agent was in charge of supervising several agents, one of which filed an internal whistleblower complaint against her. The agent was pulled into her own mortgage fraud investigation. The investigation never went anywhere, because the agent said there was no mortgage fraud. But the missed mortgage payments along with her filing bankruptcy did not go unnoticed by the agency.
The 49-year-old agent chose to publicly discuss her financial difficulties and said that, although she hates what happened, it did happen and she is embarrassed by it, "but it is what it is." Many Colorado residents and others around the country can relate to having to face similar financial difficulties. Unfortunately it is a reality for many. As the IRS agent discovered there are options available that can help you stave off a foreclosure or help you deal with a mortgage you may no longer be able to afford.
Filing for a personal bankruptcy offers many benefits, including the ability to free up needed funds to pay a mortgage if you want to try and stay in your home. A Chapter 7 bankruptcy, for example, could allow a cash-strapped family to discharge much of their credit card and other debt so they may have more money available to meet their mortgage obligations.
Filing for bankruptcy protection also provides immediate relief by stopping all collection activities, including a foreclosure, until the bankruptcy court determines the best course of action for the homeowner. If you are considering a Chapter 13 or a Chapter 7 bankruptcy, contacting a bankruptcy attorney sooner rather than later will provide you with more options in which to address your current financial difficulties.
Source: The Wall Street Journal, "The IRS agent who squatted in her own home," Al Lewis, Aug. 17, 2012
Our law firm handles a variety of bankruptcy issues, including foreclosure prevention. Visit our Lakewood stopping home foreclosure page to learn more.