[KD Hawaii]

do they report it to IRS after SS the house? If so, what will happen with IRS? will I end up paying more taxes after SS the house???

found this site..It is pretty complicated...

[airics]

i THINK that if the house is foreclosed, you do not pay the taxes on the deficiency .. new regulation... however on i short sale, i believe that you do have to pay the taxes.. how is your mortgage 1700? i owe 200, mine is 1200 but the interest rate is 4.25%

[olecapt]

No. No tax on the deficiency. Short or foreclosure makes no difference.

BofA is reasonable active on loan midifications. Try that. If you get to something reasonable then rent. If not then try short and if that does not work then foreclosure is automatic.

[Eyes]

A lot of people are walking away or losing their home
They will need a place to live
Try renting through an agent/management co.
I think .. they take a portion of the rent and first month
You must pay for any additional costs
If you break even you are ahead in the long run .. just make sure the rent can cover some money toward maintenance and emergencies .. when overages are put aside.
Housing values will climb slowly .. maybe not to past values ..
You save your credit and are now the proud owner of investment property

adding a short sale thought ..
You may need to count the difference as income and then owe taxes

[Prosze]

Tough situation. I'm definitely no expert but I agree with the suggestion of trying to rent it out via a realtor or who ever does it. They usually run credit checks & can get a general feel of the potential tenant. I would do whatever I needed to, to avoid bad credit.

[bassfan11]

A question for the more knowledgeable in this stuff than I, which would be most everyone:

When you rent out your house in a situation such as this, are you yourself then renting out an apartment to live in in the meantime? If so, doesn't that to some extent cancel out most of the gains by your tenant? Or is there some other way to rent your house out without incurring additional expenses?

Only other things I can think of is to live at a family member's house virtually rent free and rake in the rent until steady employment comes along, or stay in your house but rent out a room or rooms. Though I would think the market for rooms to stay in is as competitive as it ever would be. Or is it?

[jfkIII]

Originally Posted by Eyes

A lot of people are walking away or losing their home
They will need a place to live
Try renting through an agent/management co.
I think .. they take a portion of the rent and first month
You must pay for any additional costs
If you break even you are ahead in the long run .. just make sure the rent can cover some money toward maintenance and emergencies .. when overages are put aside.
Housing values will climb slowly .. maybe not to past values ..
You save your credit and are now the proud owner of investment property

adding a short sale thought ..
You may need to count the difference as income and then owe taxes

Such strange usage (and non-usage) of the period. I makes me want to read it like a rhyming poem...but it never rhymes.

[AnnPedi614]

Originally Posted by tijlover

Slim to none? With a foreclosure on your record, you will need to put more money down on your next house. That's what I did. Or more money down on buying a car.

My credit rating is now 700+. The foreclosure went on my record in the mid-90's.

Couldn't sell a condo loft in Minneapolis. So many foreclosures in the building I was in, (17 out of 32 units) I couldn't even find a realtor that would list it before I left Minneapolis.

Mid 90s so well over 10 years ago, so like I said the OPs chances of buying a house in the next 10 years are slim and none especially in the current market with banks being very tight with the money. Your foreclosure is off your record by now which is why your credit score is up etc.

[airics]

its 7yrs on your credit for a foreclosure + IF they get a judgment it is 7 yrs on your report from judgment date. 10yrs for bankruptcy

[AnnPedi614]

air bankruptcy used to only be 7 years, good to know a foreclosure is only 7 years, but 7 years is a long time when it comes to trying to buy a house. Thanks for the clarification. A friend lost their house and that is where the 10 year figure came from.