Upside Down On Mortgage

[timneh5]

Originally Posted by Obrero

Yeah and they bought the house with an 80 / 20 loan with the 20 being a HELC and then magically there was 10% down.

Someone is not telling the whole story. Which is: We bought another house because we paid too much for the first one and decided to walk away. How can I make sure we don't get screwed with our new house?

It does sound like this. No one is happy about paying off a home that is worth thousands less than what the home was originally purchased for, but a lot of us are doing just that...myself included...and I have a second home, too.

[joeymarine]

Originally Posted by SweetpRN

Question about that: Is the 1099 sent by the bank as income for that year? ie. We made whatever the difference between the short sale price and original mortgage that year?

Yes - it's considered a form of income as the bank forgives it. You would figure it like this Mortgage Payoff - Net to Lender after closing fees = 1099 amount.

People have already recommended that you contact an attorney - and I agree - contact an attorney for legal advice, however I personally would not have an attorney negotiate a short sale for me because of the way I've seen them handled by attorney's.

~Joey

[JCK7778]

Why would how much I make in a year have any bearing on you not being able to support the lifestyle you have palced yourself into. Whether I make $30k or $110k I live within my means and do not over extend myself...and I have made sure that I have enough in savings to keep it that way for at least 18 months if anything should happen.

As far as you stating that I am causing most of your problems...that is laughable. Take a look in the mirror, go get a menial job at Starbucks or McDonalds to help pay down the debt that you yourself created if you are not able to find a job in your chosen field. People do it everyday. They put their big boy/girl panties on and don't whine or complain about it...they simply figure it out.

Originally Posted by SweetpRN

Thanks for the opinion.

Not sure how much you make a year, and so you could probably "pay down" $100k+ in a year "to prepare for selling the home". And then how much would it have dropped next year. And by then we will probably be foreclosing on both homes anyway. How is throwing good money after bad money a good financial decision?

I can't recall blaming anyone for our situation (well other than you.. I do think most of our problems were and are being caused by you.. but that is a topic for a different day).

I do think talking to an attorney is a good idea.. thanx for that one.

I did post on a public forum in a bid to get suggestions from people in different works of life. I guess I can't control who gives their opinion and just ride with whatever comes.

And lastly, I can't recall missing or being late on any of my mortgage payments. If anything I recall mentioning that we were overpaying in a bid to pay it off early. But then again, I guess since we are just "people" we fall into whatever stereotype will help you promote the message from you soap box. "Soap box or not, I am pretty tired of people blaming everyone else for their poor decisions,"

[nybbler]

Originally Posted by SweetpRN

If we could negotiate something with the bank and have to pay the difference over time, I believe that would be a great solution. But as it stands the bank isn't even considering that as an option.

As long as you're paying the mortgage, the bank has no reason to negotiate with you. Stop paying, and they'll likely become less intransigent.

[Praxis]

This thread is like a poster child for the RE market meltdown.

[newjersied]

SweetpRN

Can you kindly post the town and/or county this property is located in?
Can you please post the purchase price?

[manderly6]

Originally Posted by newjersied

SweetpRN

Can you kindly post the town and/or county this property is located in?
Can you please post the purchase price?

This thread is over a year old. You may want to DM the OP.

[newjersied]

thx