Cityscape Financial (CTYS) Message Board

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Non-Tech : Cityscape Financial (CTYS)

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To: Rational who wrote (878)	10/12/1997 6:03:00 PM
From: Brooks Jackson	of 2544

Here's a link to the IRS publication regarding the deductibility of home mortgages and home-equity loans: irs.ustreas.gov If CTYS is telling borrowers they can automatically deduct all of a 125% LTV loan, I think they are wrong and that some borrowers will run into trouble. The IRS pub say in part: "There is a limit on the amount of debt that can be treated as home equity debt. The total debt on your main home and second home is limited to the smaller of: 1.$100,000 ($50,000 if married filing separately), or 2.The total of each home's fair market value (FMV) ... Interest on amounts over the home equity debt limit generally is treated as personal interest and is NOT deductible. " (emphasis added) But again, the subject I would really like to discuss is how CTYS intends to deal with the inevitable increase in delinquencies, foreclosures and loan write-offs that come with the next downturn. They have no experience with this. What is their plan?

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