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Thread summary:

A quick house sale, is it doable now ? Tell me about the bailout, mortgage, recourse, loan, equity and home construction.

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Old 01-11-2009, 11:20 PM
 
Location: NW MT
1,436 posts, read 2,980,952 times
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Quote:
Originally Posted by Rose Red View Post
I hope all these people who are trying to play the system and walk get a 1099 at the end of the year. You can't walk away from the IRS.
Depending on how your money comes in, you most certainly can walk away from the IRS just as you would be able to with any other creditor. All they will do is file a lien on your person (if you have no property in your name). It will last for 10 years then go away. Nothing more.

If one is walking away from a mortgage and taking a hit on their credit already, why would they care about a second hit on it by the IRS ? The IRS can't collect what isn't available to collect or collect what isn't yours no matter how you spin it !

Same goes for the bank. Forget about a short sale... just walk from it and be done with it. With little or no equity in it, it's the perfect time to make a change !
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Old 01-12-2009, 07:27 AM
 
26,661 posts, read 40,594,954 times
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Quote:
Originally Posted by Stephan_K View Post
Depending on how your money comes in, you most certainly can walk away from the IRS just as you would be able to with any other creditor. All they will do is file a lien on your person (if you have no property in your name). It will last for 10 years then go away. Nothing more.

If one is walking away from a mortgage and taking a hit on their credit already, why would they care about a second hit on it by the IRS ? The IRS can't collect what isn't available to collect or collect what isn't yours no matter how you spin it !

Same goes for the bank. Forget about a short sale... just walk from it and be done with it. With little or no equity in it, it's the perfect time to make a change !
What will happen if thousands of people will start to do what you are saying.....?
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Old 01-12-2009, 07:51 AM
 
Location: State of Superior
8,632 posts, read 14,229,402 times
Reputation: 2777
Quote:
Originally Posted by Stephan_K View Post
Depending on how your money comes in, you most certainly can walk away from the IRS just as you would be able to with any other creditor. All they will do is file a lien on your person (if you have no property in your name). It will last for 10 years then go away. Nothing more.

If one is walking away from a mortgage and taking a hit on their credit already, why would they care about a second hit on it by the IRS ? The IRS can't collect what isn't available to collect or collect what isn't yours no matter how you spin it !

Same goes for the bank. Forget about a short sale... just walk from it and be done with it. With little or no equity in it, it's the perfect time to make a change !
You make a good point. I am not sure what the advantages of a short sale is , if there are any. Knowing you are going to lose , does prompt the thought , " why in the world would I further punish myself " ?
This is the big question , the one that has to be addressed by the Government.......... In the past , during the Great Depression ( we were a much smaller economy ) , those with money took advantage of the opportunity , and , bought up all the properties for pennies on the dollar. I would not be surprised to see something like that happen again . Look for some " new" , corporates emerge that will prosper on the backs of those that do not have the funds , .....the middle Class.
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Old 01-12-2009, 07:55 AM
 
947 posts, read 2,881,863 times
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Quote:
Originally Posted by Stephan_K View Post
Depending on how your money comes in, you most certainly can walk away from the IRS just as you would be able to with any other creditor. All they will do is file a lien on your person (if you have no property in your name). It will last for 10 years then go away. Nothing more.

If one is walking away from a mortgage and taking a hit on their credit already, why would they care about a second hit on it by the IRS ? The IRS can't collect what isn't available to collect or collect what isn't yours no matter how you spin it !

Same goes for the bank. Forget about a short sale... just walk from it and be done with it. With little or no equity in it, it's the perfect time to make a change !
Seriously. I had no idea. I thought that once you owed money to the IRS you owed forever until it was paid. They would garnish your wages or attach liens to your bank account until paid.
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Old 01-12-2009, 11:15 AM
 
38 posts, read 65,065 times
Reputation: 50
Let me get this straight. The banks are the ones that helped cause this mess by giving away easy credit.They were irresponsible (as well as those that took out these crazy mortgages) and greedy. The taxpayers have been forced to not only bail out these corporations,but to pay much of the bonuses that they have paid to their "top" employees.Yet, it is wrong for those who have lost equity in their homes to just walk? The easy credit led to the inflated home values.This bubble was created by the FED and their banks.
So basically what you're saying is that it's ok for corporations to rob us blind. We must just take it and while we're at it,keep paying them as well. My family's share of the tax burden for the 8.5 TRILLION bailout and all of the backdoor programs created to fund these banks stands at over 120,000(over 23,000 per person).That is more than the debt I owe these banks,mortgage included.I consider us even.So what if I have to declare bankruptcy.I will NEVER do business with these criminals again and I'll be damned if they get anymore from me.
What if everyone decided to do this? Well, maybe they would think twice about screwing everyone over.They would immediately go insolvent like they should have before they committed the Great American Heist.Don't kid yourselves into thinking that this bailout was anything less than a heist.
If you owed someone money and they just came into your house and robbed you of more than what you owed them,would you continue to pay them or demand they be prosecuted and sent to jail?
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Old 01-12-2009, 11:31 AM
 
Location: Charlotte, NC
523 posts, read 2,659,957 times
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Quote:
Originally Posted by melcee View Post
Let me get this straight. The banks are the ones that helped cause this mess by giving away easy credit.They were irresponsible (as well as those that took out these crazy mortgages) and greedy. The taxpayers have been forced to not only bail out these corporations,but to pay much of the bonuses that they have paid to their "top" employees.Yet, it is wrong for those who have lost equity in their homes to just walk? The easy credit led to the inflated home values.This bubble was created by the FED and their banks.
So basically what you're saying is that it's ok for corporations to rob us blind. We must just take it and while we're at it,keep paying them as well. My family's share of the tax burden for the 8.5 TRILLION bailout and all of the backdoor programs created to fund these banks stands at over 120,000(over 23,000 per person).That is more than the debt I owe these banks,mortgage included.I consider us even.So what if I have to declare bankruptcy.I will NEVER do business with these criminals again and I'll be damned if they get anymore from me.
What if everyone decided to do this? Well, maybe they would think twice about screwing everyone over.They would immediately go insolvent like they should have before they committed the Great American Heist.Don't kid yourselves into thinking that this bailout was anything less than a heist.
If you owed someone money and they just came into your house and robbed you of more than what you owed them,would you continue to pay them or demand they be prosecuted and sent to jail?
Your attitude is ridiculous. Blame whomever you want for the financial crisis but the mortgage that you have on your home was a decision made by YOU. No bank FORCED you to buy the home at the price you paid for it. Even though a lot of people don't like to call it such, real estate IS an investment just like stocks and bonds are. As with any investment, there is risk. Sometimes the value of the investment goes up, sometimes it goes down. That's just the way it works. You didn't have to buy the house, you could have rented. A falling home value is one of the risks of home ownership. You and the seller agreed upon the price of the home and no one made you pay that price. The great thing about owning the house is you can hold on to it for a long time. Wait out the storm and eventually the value will come back and you can sell at that time. In the meantime, you've had a nice place to live.
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Old 01-12-2009, 01:13 PM
 
38 posts, read 65,065 times
Reputation: 50
Actually, my area has not been hit by this YET and my home is still worth what I paid for it. My attitude is not ridiculous. What's ridiculous is the fact that most Americans continue to sit and take this theft. It is theft pure and simple. If the real reason for the "credit crunch" was just liquidity,why did the FED not take that 700B and capitalize new banks? They could have let the bad banks fail and lending would have resumed.The problem with that was that the criminal actions of all,from the little people who lied to get the loans,to the corporations,all the way up to those in government( who not only allowed this,but encouraged it )would have been exposed.There is a lot more to this than just a simple housing or credit crisis. Read up on it.A great place to start is market-ticker.org
If my attitude is considered ridiculous because I will no longer just keep taking it and I demand that those that committed the crimes be punished,than maybe this country is already lost. The longer we continue to accept this behavior and bail out those that not only messed up,but knowingly committed fraud,than the worse off we will be in the long run.
When will you understand that home prices were intentionally inflated? Easy cheap credit was made available on purpose to inflate another bubble after the tech bubble burst.More buyers magically being able to get credit for homes made the home values increase.Simple supply versus demand.
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Old 01-12-2009, 02:18 PM
 
Location: Charlotte, NC
523 posts, read 2,659,957 times
Reputation: 373
Quote:
Originally Posted by melcee View Post
Actually, my area has not been hit by this YET and my home is still worth what I paid for it. My attitude is not ridiculous. What's ridiculous is the fact that most Americans continue to sit and take this theft. It is theft pure and simple. If the real reason for the "credit crunch" was just liquidity,why did the FED not take that 700B and capitalize new banks? They could have let the bad banks fail and lending would have resumed.The problem with that was that the criminal actions of all,from the little people who lied to get the loans,to the corporations,all the way up to those in government( who not only allowed this,but encouraged it )would have been exposed.There is a lot more to this than just a simple housing or credit crisis. Read up on it.A great place to start is market-ticker.org
If my attitude is considered ridiculous because I will no longer just keep taking it and I demand that those that committed the crimes be punished,than maybe this country is already lost. The longer we continue to accept this behavior and bail out those that not only messed up,but knowingly committed fraud,than the worse off we will be in the long run.
When will you understand that home prices were intentionally inflated? Easy cheap credit was made available on purpose to inflate another bubble after the tech bubble burst.More buyers magically being able to get credit for homes made the home values increase.Simple supply versus demand.
This post made much more sense than your last one. The last one sounded bitter, this one has a little to back up your thoughts. I actually have done extensive research on the subject and I was also in the mortgage industry for three years when crazier and crazier loans were created. I left the industry in 2003 to get my MBA because I thought there would be a mortgage collapse and I figured I would need a new career. I absolutely believe (and know from what I have seen) that there was fraud. I also know that a majority of the fraud was on the part of the borrowers, not the loan officers. In addition, a majority of people were not scammed in any way. They knew exactly what they were doing. Many people wanted to make a quick buck. Others just wanted an opportunity to own real estate--something they had never been able to do before. Others wanted to use their home equity to pay off very high-interest credit card debt (in many of these cases they were finally able to get out of debt and start putting money in their 401k and kids' college funds). As far as the Fed bailout goes, I share in your annoyance of so many corporate bailouts.

My point in my earlier post was that people who are losing money on their houses should not walk away from their mortgages. It will only make the situation worse. House prices don't always go up, they also go down and anyone making the biggest or one of the biggest investment of their lives should look at it as such and be aware of this. If everyone decides that their particular situation isn't fair and that someone else is to blame and thus decide to walk away from their mortgages now, the entire economy will collapse. Everyone needs to take responsibility for his or her own actions. If one decides to take out a loan, it is NOT optional to repay it, no matter what the loan was for. Defaulting on a loan is stealing.
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Old 01-12-2009, 02:41 PM
 
Location: State of Superior
8,632 posts, read 14,229,402 times
Reputation: 2777
Quote:
Originally Posted by Anu2 View Post
This post made much more sense than your last one. The last one sounded bitter, this one has a little to back up your thoughts. I actually have done extensive research on the subject and I was also in the mortgage industry for three years when crazier and crazier loans were created. I left the industry in 2003 to get my MBA because I thought there would be a mortgage collapse and I figured I would need a new career. I absolutely believe (and know from what I have seen) that there was fraud. I also know that a majority of the fraud was on the part of the borrowers, not the loan officers. In addition, a majority of people were not scammed in any way. They knew exactly what they were doing. Many people wanted to make a quick buck. Others just wanted an opportunity to own real estate--something they had never been able to do before. Others wanted to use their home equity to pay off very high-interest credit card debt (in many of these cases they were finally able to get out of debt and start putting money in their 401k and kids' college funds). As far as the Fed bailout goes, I share in your annoyance of so many corporate bailouts.

My point in my earlier post was that people who are losing money on their houses should not walk away from their mortgages. It will only make the situation worse. House prices don't always go up, they also go down and anyone making the biggest or one of the biggest investment of their lives should look at it as such and be aware of this. If everyone decides that their particular situation isn't fair and that someone else is to blame and thus decide to walk away from their mortgages now, the entire economy will collapse. Everyone needs to take responsibility for his or her own actions. If one decides to take out a loan, it is NOT optional to repay it, no matter what the loan was for. Defaulting on a loan is stealing.
The one thing you don't talk about is how transit America is. The average American moves something like every 5 years. Few people these days look at a home as a final investment. Many folks put more priority in their auto purchase , than a house. Right or wrong , doesn't matter that much , its the way things are , we are a mobile society. Being upside down in a home is a new thing for a lot of people. Something DOES need to be done. Stealing as you put it , is not quite what is going on for most unfortunate folks. Yes , the speculators , are a different story , but , I still would not put most of them in the same category as Bernie Madoff.
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Old 01-12-2009, 06:56 PM
 
Location: NW MT
1,436 posts, read 2,980,952 times
Reputation: 548
Quote:
Originally Posted by bentlebee View Post
What will happen if thousands of people will start to do what you are saying.....?
Simple... Gov prints more money ! Just like they are doing now for everyone that is doing it today. And tomorrow they will do the same. It's impossible to force someone to make a payment on anything, especially when they don't have it.


Quote:
Originally Posted by Rose Red View Post
Seriously. I had no idea. I thought that once you owed money to the IRS you owed forever until it was paid. They would garnish your wages or attach liens to your bank account until paid.
The IRS is a business like any other. They will not waist dollars collecting something that is going to cost them more in the long run then what will probably be recovered. Most people with big Fed liens after 3 years (you can not discharge a fed lien for at least 3 years) file a chapter and do away with it anyway and the IRS knows it.

And how they deal with you all depends on how your income is structured too. If you are a W2 employee/slave then yes they may have your wages garnished depending on what your income is. If you are a self employed person and control your income through a properly structured business, they will file a personal lien and whack any bank account you personally use and that is about it. Those with this kind of low income just let the lien sit for 10 years and forget about it or discharge it after 3 years.

If they lien a bank account... (chances are you won't be using it anyway) simply open another one. They do not have the man power to track the movements of every person that owes them money. It simply costs them too much to do.

The IRS is not as scary as everyone thinks they are especially if you understand how the system works. If you don't then they become a product of the rumors floating around to one. What is really scary to me is how many people don't understand how the gov functions ! People imprison themselves over the gov and the rumors about it.

Most common myth debunked... they do not put you in jail for owing them money as everyone seems to think they do. It is not a crime to owe anyone money and never ever has been !

Have a short talk with a reputable Tax Attorney some time... You will see things in a whole new light !
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