Very frustrating situation with self employed income - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - Page 2 - City-Data Forum

SmartMoney · 12-31-2014, 07:43 PM

Be very careful, definitely consult an attorney AND a CPA. The Homeowner Forgiveness Act I believe has expired, meaning if the mortgage is "shorted" or foreclosed upon, you could get a 1099 at the end of the year and your problem will be with the IRS. Make sure you fully understand the consequences of your actions.

rumi79 · 01-01-2015, 08:28 AM

Thanks SmartMoney for the advice!

I decided to try mortgage modification first, so I can lower payments to $850~900 a month and then I can rent it out for the payment and have some extra for maintenance and repairs.

If it doesn't work out I will look into shortsale. Even if we sale it won't be for more than 20~30000 less than what we owe, so I don't see a problem with paying these money back. After all it was our mistake/bad financial decision so we should be the ones responsible for the consequences.