- This topic has 10 replies, 3 voices, and was last updated 16 years, 7 months ago by
bubba99.
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January 11, 2008 at 9:03 PM #11477January 11, 2008 at 9:33 PM #134693
pk92108
ParticipantThere are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..
Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…
January 11, 2008 at 9:33 PM #134888pk92108
ParticipantThere are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..
Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…
January 11, 2008 at 9:33 PM #134897pk92108
ParticipantThere are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..
Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…
January 11, 2008 at 9:33 PM #134953pk92108
ParticipantThere are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..
Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…
January 11, 2008 at 9:33 PM #134994pk92108
ParticipantThere are some old posts about this, so check the search feature..But I believe they can do it as long as they haven’t tapped into a home equity line of credit…Might be some tax consequences (maybe) in the form of getting a 1099 for the difference, but it is still a maybe..
Better to save 100K and repair your credit in 8 years, as long as you dont plan on buying a home in that time..The loan is secured against the property unless a home equity loan has been used..(i think)…
January 11, 2008 at 10:02 PM #134717bubba99
ParticipantThe credit report stays negative – reports the foreclosure for seven years and seven days after the last legal action. So after all the creditors get done with their paper work – which may be a while with todays volume of repos, then seven years + of notes on the TRW, Trans Union, and Equifax reports will include the negative item.
There will be a lot of these negative items and maybe future lenders will be more lax, but I doubt it. There is no “repairing” a public record item.
Is it is a good idea to walk away or not depends on the tax consequences and new rental costs. Between the state and fed tax relief, there is a $24,000 deduction/year. At 22% fed, and 8% state nominal tax rates, that is $7200/year that would need to be offset by an equal reduction in rent vs own. If their tax rates are much lower, then . . .
It may not be a great idea to walk and rent with todays variable credit card interest rates. When a foreclosure triggers a higher rate, who know?
January 11, 2008 at 10:02 PM #134913bubba99
ParticipantThe credit report stays negative – reports the foreclosure for seven years and seven days after the last legal action. So after all the creditors get done with their paper work – which may be a while with todays volume of repos, then seven years + of notes on the TRW, Trans Union, and Equifax reports will include the negative item.
There will be a lot of these negative items and maybe future lenders will be more lax, but I doubt it. There is no “repairing” a public record item.
Is it is a good idea to walk away or not depends on the tax consequences and new rental costs. Between the state and fed tax relief, there is a $24,000 deduction/year. At 22% fed, and 8% state nominal tax rates, that is $7200/year that would need to be offset by an equal reduction in rent vs own. If their tax rates are much lower, then . . .
It may not be a great idea to walk and rent with todays variable credit card interest rates. When a foreclosure triggers a higher rate, who know?
January 11, 2008 at 10:02 PM #134922bubba99
ParticipantThe credit report stays negative – reports the foreclosure for seven years and seven days after the last legal action. So after all the creditors get done with their paper work – which may be a while with todays volume of repos, then seven years + of notes on the TRW, Trans Union, and Equifax reports will include the negative item.
There will be a lot of these negative items and maybe future lenders will be more lax, but I doubt it. There is no “repairing” a public record item.
Is it is a good idea to walk away or not depends on the tax consequences and new rental costs. Between the state and fed tax relief, there is a $24,000 deduction/year. At 22% fed, and 8% state nominal tax rates, that is $7200/year that would need to be offset by an equal reduction in rent vs own. If their tax rates are much lower, then . . .
It may not be a great idea to walk and rent with todays variable credit card interest rates. When a foreclosure triggers a higher rate, who know?
January 11, 2008 at 10:02 PM #134977bubba99
ParticipantThe credit report stays negative – reports the foreclosure for seven years and seven days after the last legal action. So after all the creditors get done with their paper work – which may be a while with todays volume of repos, then seven years + of notes on the TRW, Trans Union, and Equifax reports will include the negative item.
There will be a lot of these negative items and maybe future lenders will be more lax, but I doubt it. There is no “repairing” a public record item.
Is it is a good idea to walk away or not depends on the tax consequences and new rental costs. Between the state and fed tax relief, there is a $24,000 deduction/year. At 22% fed, and 8% state nominal tax rates, that is $7200/year that would need to be offset by an equal reduction in rent vs own. If their tax rates are much lower, then . . .
It may not be a great idea to walk and rent with todays variable credit card interest rates. When a foreclosure triggers a higher rate, who know?
January 11, 2008 at 10:02 PM #135019bubba99
ParticipantThe credit report stays negative – reports the foreclosure for seven years and seven days after the last legal action. So after all the creditors get done with their paper work – which may be a while with todays volume of repos, then seven years + of notes on the TRW, Trans Union, and Equifax reports will include the negative item.
There will be a lot of these negative items and maybe future lenders will be more lax, but I doubt it. There is no “repairing” a public record item.
Is it is a good idea to walk away or not depends on the tax consequences and new rental costs. Between the state and fed tax relief, there is a $24,000 deduction/year. At 22% fed, and 8% state nominal tax rates, that is $7200/year that would need to be offset by an equal reduction in rent vs own. If their tax rates are much lower, then . . .
It may not be a great idea to walk and rent with todays variable credit card interest rates. When a foreclosure triggers a higher rate, who know?
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