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Old 08-02-2008, 07:34 PM
 
3,460 posts, read 4,791,423 times
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Quote:
Thoughts?
Put up your new home as collateral for the short sale, and work to pay off the debt.
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Old 08-02-2008, 07:42 PM
 
43 posts, read 189,836 times
Reputation: 32
I like your accountability, but I'm looking for reality here. Please refer to the holy roller comment in my opening post.
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Old 08-03-2008, 07:53 AM
 
Location: A little suburb of Houston
3,702 posts, read 15,925,817 times
Reputation: 2047
Has your bank accepted the 240K as a payoff amount? If not...you will not be able to sell the place without bringing cash to the table. The only way to do that would be to take it out of your current home, so the above statement is not incorrect. If your bank accepts it, then you are free and clear and they will take the write off.
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Old 08-03-2008, 08:02 AM
 
2,836 posts, read 3,005,822 times
Reputation: 1399
You may well end up with a Form 1099 and owe a lot of taxes. See I.R.C. 61(a)(12). In this regard, you may be eligible for some relief under the Mortgage Forgiveness Debt Relief Act of 2007; however it is very limited and does not apply to nonpurchase-money home loans (e.g., home equity lines). You should consult a lawyer about avoiding this by discharging the debt through bankruptcy.
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Old 08-03-2008, 09:24 AM
 
Location: Tucson, AZ
529 posts, read 2,090,053 times
Reputation: 326
Quote:
Originally Posted by formerLVguy View Post
FYI, I accepted a short sale contract on my condo this week. $240K saleprice on $329K debt. I think the lender would be lucky to get that in a foreclosure sale, more likely they'll get less. Irony is that because I've never been late, they probably won't entertain the short sale.....Thoughts?
You'd be surprised, I've spoken to agents with short sale clients who aren't in financial distress or behind on payments, and whose lender(s) are still entertaining/accepting short sale offers.

This seems to be pretty quiet still..publicly lenders and agents swear against it, but it is happening. It also seems to depend on the particular lender.

It makes financial sense much of the time especially considering so many people got into the game with nothing down and have no qualms about walking away.
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Old 08-03-2008, 09:41 AM
 
2,836 posts, read 3,005,822 times
Reputation: 1399
Here is a CPA Journal article on the tax consequences of foreclosure:
Mortgage Forgiveness Debt Relief Act of 2007 Reduces Negative Tax Consequences from Foreclosures
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Old 10-29-2008, 05:24 PM
 
1 posts, read 3,575 times
Reputation: 10
Default Deficiency Judgement??

I have read the thread of replies to formerLVguy's situation and I found all this very helpful since i am in a similar situation but I'd like more information on the deficiency judgement. What happens when this gets filed? How likely is it that they will try to garnish wages for the amount that was not re-couped after the sale?
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Old 01-22-2009, 08:41 AM
 
Location: San Diego
2 posts, read 6,577 times
Reputation: 10
Quote:
Originally Posted by formerLVguy View Post
My condo is worth about 260,000 in today's market. I owe 348,000. I made my last payment in June and my lender is starting to call. I don't have any intention of paying for various reasons.

***Now hold on right there, you holy rollers. Before you add your reply about me being a deadbeat and you having to pay for my mistake, please go to another forum or start your own, thank you.***

Eventually my condo will end up in foreclosure. The second mortgage was a cash out equity line, that has been frozen by CW for over a year because the value has dropped so much. CW will have a right to pursue a deficiency judgement against me in court.

My questions are these:

Will they?

Who determines the fair market value of the condo?

What happens if I simply don't pay the judgement?

By the way, other factors are; I now live in another state, I bought the condo as a primary residence and relocated, I now own another house, have no debt nor need of credit cards, I was single when I bought it - now I'm married.

Thank you, and I will not reply to those of you that want to; talk me out of it; verbally abuse me for my decision, or offer alternative suggestions (I know them all).
I simply am looking for answers to these questions, especially if you've been through this before.
Whatever happened with this?? I am in a similar situation now.
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Old 01-22-2009, 09:33 AM
 
Location: Londonderry, NH
41,505 posts, read 49,557,510 times
Reputation: 24548
I strongly suggest hiring a lawyer to deterine your LEGAL responsibilites. Financial trouble is one thing and criminal trouble another.
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Old 01-23-2009, 01:58 PM
 
24 posts, read 102,285 times
Reputation: 29
gregw, how is buying a house and not being able to sell it illegal?
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