Home › Forums › Housing › A perfect storm brewing 2010-2012? › I agree. My point is that
I agree. My point is that time may be running out for some of those playing kick the can.
Under current law, some people will be much better off if the bank forecloses before January 2013.
Currently: If you are behind on your payments: Bad If the bank forecloses: Bad In the foreclosure, the bank forgives, say, $100k of debt: Bad
If they foreclose after December 31, 2012, in this scenario you would also then owe the IRS $38,000: That’s real bad
For some borrowers (those underwater, with recourse loans), its better to get out before then.
