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Old 05-13-2008, 01:34 PM
 
551 posts, read 2,726,197 times
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Quote:
Originally Posted by Bummer View Post
Very valid point, HX_Guy.

I wonder if these "quick to dump and run" types attempt the same approach with their Stock Market Investments?
Unfortunately, bankruptcy and/or just plain running from your debts is becoming the American way. Even Donald Trump (or at least the companies he has run) has filed for bankruptcy multiple times!
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Old 05-13-2008, 02:14 PM
 
92 posts, read 421,752 times
Reputation: 56
A Deed in lieu of Foreclosure may be an option. It shows up as a foreclosure on your credit, but you don't have the 6-9 months of missed payments on your credit.
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Old 05-13-2008, 02:33 PM
 
Location: Sonoran Desert
39,078 posts, read 51,231,444 times
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Quote:
Originally Posted by Master Shake View Post
Yes, you are correct. But crystalys was referring to the fact that you do not have to pay taxes on your house if you sell for a profit (and meet other criteria). The OP is referring to a short sale, which is selling your house at a loss (or at least, for less than you owe) which is, unfortunately, taxable.

If you do sell your house for a profit, then the tax exclusion is very beneficial!
The Mortgage Debt Relief Act of 2007 (or some such title) in most cases exempts homeowners' acquisition costs forgiven from taxes as long as you do it before the end of 2009. Acquisition costs means what you paid to buy the house - not equity loans or refinances in excess of the previous mortgage. Equity loans that went directly to home improvements (pool, for example) do count. In AZ, mortgagors can't collect deficiency judgments on the first mortgage but can on equity loans, though that is not likely.

Try to get this done without getting behind on payments first. Tell the bank what you are up to i.e. "mail" the key. The more late payments you have before the bank writes it off, the worse your credit is going to get hit.
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Old 05-13-2008, 07:03 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,261,360 times
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Quote:
Originally Posted by abmiku View Post
A Deed in lieu of Foreclosure may be an option. It shows up as a foreclosure on your credit, but you don't have the 6-9 months of missed payments on your credit.
Before any action is taken, the borrower should consult with legal counsel and a tax advisor.

There are a number of options that may be available to the borrower
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