Advice needed for Nevada

[kev374]

A friend of mine speculated on a 1bd condo in Las Vegas. Now she is upside down on the property. She has a 2nd cash out refi on it as well which is actually her downpayment that she wanted back.

She is not at all knowledgable about Real Estate and bought this property on the coercion of some of her relatives who also were speculators. Now she wants out and walking away is one of the options she is considering.

My question is, under current law, what are the tax implications of foreclosure? Is the law that eliminates tax liability already passed? In Nevada is the purchase money loan non-recourse? I know she will still be on the hook for the 2nd but she doesn’t intend to pay that as well, but I believe that will just be a charge off.

[Deal Hunter]

Kev347 – If the condo in Vegas is not a primary residence it is not included in the Mortgage Relief Act that prevents bank loss on foreclosure from being taxable as income.

Her 1st mortgage is most likely non-recourse so it will be settled at short sale or foreclosure.  If her second is the same (a closed true second mortgage) then it will be the same.  If however, it is a HELOC or other type of revolving credit loan, then she may still be on the hook for it even if she walks away. 

Contact me and I can take a look at her situation for more clarity and what options she has.   If she can rent it, the rent rates are going up in Vegas and vacancy is going down.  A rental income can offset at least some of the mortgage payments.  A short sale is the best way for her to unload the property and save her credit.  Go to

http://realestatedealhunters.com/foreclosurehelp.php

and have your friend contact me.  I close a handful of ss each month here in Vegas.  There's no reason to just foreclose if it can be disposed through short sale.

[Deal Hunter]

Kev347 – If the condo in Vegas is not a primary residence it is not included in the Mortgage Relief Act that prevents bank loss on foreclosure from being taxable as income.

Her 1st mortgage is most likely non-recourse so it will be settled at short sale or foreclosure.  If her second is the same (a closed true second mortgage) then it will be the same.  If however, it is a HELOC or other type of revolving credit loan, then she may still be on the hook for it even if she walks away. 

Contact me and I can take a look at her situation for more clarity and what options she has.   If she can rent it, the rent rates are going up in Vegas and vacancy is going down.  A rental income can offset at least some of the mortgage payments.  A short sale is the best way for her to unload the property and save her credit.  Go to

http://realestatedealhunters.com/foreclosurehelp.php

and have your friend contact me.  I close a handful of ss each month here in Vegas.  There's no reason to just foreclose if it can be disposed through short sale.

[Deal Hunter]

Kev347 – If the condo in Vegas is not a primary residence it is not included in the Mortgage Relief Act that prevents bank loss on foreclosure from being taxable as income.

Her 1st mortgage is most likely non-recourse so it will be settled at short sale or foreclosure.  If her second is the same (a closed true second mortgage) then it will be the same.  If however, it is a HELOC or other type of revolving credit loan, then she may still be on the hook for it even if she walks away. 

Contact me and I can take a look at her situation for more clarity and what options she has.   If she can rent it, the rent rates are going up in Vegas and vacancy is going down.  A rental income can offset at least some of the mortgage payments.  A short sale is the best way for her to unload the property and save her credit.  Go to

http://realestatedealhunters.com/foreclosurehelp.php

and have your friend contact me.  I close a handful of ss each month here in Vegas.  There's no reason to just foreclose if it can be disposed through short sale.

[Deal Hunter]

Kev347 – If the condo in Vegas is not a primary residence it is not included in the Mortgage Relief Act that prevents bank loss on foreclosure from being taxable as income.

Her 1st mortgage is most likely non-recourse so it will be settled at short sale or foreclosure.  If her second is the same (a closed true second mortgage) then it will be the same.  If however, it is a HELOC or other type of revolving credit loan, then she may still be on the hook for it even if she walks away. 

Contact me and I can take a look at her situation for more clarity and what options she has.   If she can rent it, the rent rates are going up in Vegas and vacancy is going down.  A rental income can offset at least some of the mortgage payments.  A short sale is the best way for her to unload the property and save her credit.  Go to

http://realestatedealhunters.com/foreclosurehelp.php

and have your friend contact me.  I close a handful of ss each month here in Vegas.  There's no reason to just foreclose if it can be disposed through short sale.

[Deal Hunter]

Kev347 – If the condo in Vegas is not a primary residence it is not included in the Mortgage Relief Act that prevents bank loss on foreclosure from being taxable as income.

Her 1st mortgage is most likely non-recourse so it will be settled at short sale or foreclosure.  If her second is the same (a closed true second mortgage) then it will be the same.  If however, it is a HELOC or other type of revolving credit loan, then she may still be on the hook for it even if she walks away. 

Contact me and I can take a look at her situation for more clarity and what options she has.   If she can rent it, the rent rates are going up in Vegas and vacancy is going down.  A rental income can offset at least some of the mortgage payments.  A short sale is the best way for her to unload the property and save her credit.  Go to

http://realestatedealhunters.com/foreclosurehelp.php

and have your friend contact me.  I close a handful of ss each month here in Vegas.  There's no reason to just foreclose if it can be disposed through short sale.

[Author]

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