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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (105396)	2/16/2008 2:59:39 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

especially with a high fico and income...that's just nutz, i hope you are right, lenders need to pay hardball with jerks like this but you see where this is going.... if a guy like decides he just doesn't want to continue making higher payments (after the reset), well, why not just stop? after all, (his house is worth a grand total of $25k less than he paid)...stop paying, force the bank into foreclosure, live rent free for 6 months to a year, and cya later

To: JBTFD who wrote (105396)	2/16/2008 4:12:40 PM
From: Elroy Jetson	Respond to of 306849

For 2007 through 2009, debt cancellation on your primary residence, whether as the result of a so-called "short sale" or a foreclosure, is not taxable. Taxpayers are likely to get a 1099C showing the phantom income, however, so you must fill out a Form 982 to exclude that income from tax. Before last year, if you lost your house in foreclosure or were forced to sell it for less than the loan amount, you'd typically be subject to "debt cancellation income." The short version: The IRS assesses income tax on the money you didn't have to pay back. "When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes. So I'm working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on cancelled mortgage debt." - Idiot in Chief George W. Bush, 9/1/07 The Mortgage Forgiveness Debt Relief Act of 2007 .