Upside Down Mortgage » Home Equity Questions

Can I Walk Away from Mortgage and Give Bank Back the House?

Unregistered User — Wed, 15 Jul 2009 01:48:26 +0000

Here are the facts about my situation. My sister is divorced and the house and mortgage are in her name. She does have equity in the house and is not upside down on it (not yet anyway). She has moved out of state and the ex is still living in the house.

The agreement was that he can live there as long as he makes the payment on time until he finds something else or the market gets better. Everything looks good on paper until payments are late and communication becomes poor.

My question is can a person just call the mortgage company and say " I no longer want the house you guys take it" realizing there is probably $20,000 in equity in the house?

I realize that walking away from that much money is hard to do but my sister has decided that peace of mind and a clean start is worth it. Any advise would be greatly appreciated.

Can I Walk Away from Mortgage and Give Bank Back the House? is a post from: Upside Down Mortgage

Questions about Short Sale, Property Tax and Loan Modification

Unregistered User — Sun, 14 Jun 2009 22:04:57 +0000

I have 2 1/2 years worth of property tax to pay. Needless to say that I cannot pay it especially right now that my finances is not in great shape. I called my lender and they first talked to me about loan modification. I am willing to do a loan modification but it's still too high. They also said they can wipe the property tax clean for me. Can that be done? Are they telling me the truth?

What about when it's on short sale. If it's still the process, am I still liable to pay for the property tax I already owe? What about those weeks or months that is up for short sale, am I still liable for prop taxes during those weeks and months? pls someone help! I feel like my lender is lying to me about wiping the property tax. I'm so confused, scared, and not sure what to do!

Questions about Short Sale, Property Tax and Loan Modification is a post from: Upside Down Mortgage

Mortgage Forgiveness Debt Relief Act of 2007

admin — Sat, 13 Jun 2009 00:21:32 +0000

What is The Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. In this bad economic time and rising foreclosure rate, this Mortgage Forgiveness Debt Relief Act comes in handy.

What is meaning of The Mortgage Forgiveness Debt Relief Act of 2007?

The Mortgage Debt Relief Act of 2007 basically provides for when you owe a debt to someone else and they cancel or forgive that debt. Usually when a debt is forgiven, the forgiver can then claim a tax deduction of that canceled debt while the debtor may have to pay taxes on that amount. The canceled debt amount may be taxable. However with this Mortgage Forgiveness Debt Relief Act of 2007 in place, taxpayers may exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

What Debts are Eligible for the Mortgage Forgiveness Debt Relief Act of 2007?

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

Where to Get More Information on this Mortgage Forgiveness Debt Relief Act of 2007?

More information, including detailed examples can be found in the IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments.

Mortgage Forgiveness Debt Relief Act of 2007 is a post from: Upside Down Mortgage