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pencilneck.
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February 28, 2008 at 7:21 PM #162676February 28, 2008 at 10:45 PM #162377
Deal Hunter
ParticipantThe things that show up on credit are lates, defaults and how much of your available credit you’ve used.
If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.
However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).
If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.
February 28, 2008 at 10:45 PM #162672ParticipantThe things that show up on credit are lates, defaults and how much of your available credit you’ve used.
If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.
However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).
If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.
February 28, 2008 at 10:45 PM #162688ParticipantThe things that show up on credit are lates, defaults and how much of your available credit you’ve used.
If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.
However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).
If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.
February 28, 2008 at 10:45 PM #162705ParticipantThe things that show up on credit are lates, defaults and how much of your available credit you’ve used.
If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.
However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).
If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.
February 28, 2008 at 10:45 PM #162776ParticipantThe things that show up on credit are lates, defaults and how much of your available credit you’ve used.
If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.
However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).
If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.
February 28, 2008 at 10:46 PM #162382SD Realtor
ParticipantActually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
SD Realtor
February 28, 2008 at 10:46 PM #162677ParticipantActually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
SD Realtor
February 28, 2008 at 10:46 PM #162694ParticipantActually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
SD Realtor
February 28, 2008 at 10:46 PM #162710ParticipantActually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
SD Realtor
February 28, 2008 at 10:46 PM #162781ParticipantActually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
SD Realtor
February 28, 2008 at 11:47 PM #162401ParticipantYou’re right, SD. It’s another form of fighting the price correction that really needs to happen. It may be painful, but the markets really need to be set free. Manipulation of the markets by the Fed thru monetary policy and the government thru fiscal policy needs to just STOP.
I know that what I am about to say is going to trigger vile retorts, but the real enemy is inflation. Helicopter Ben needs to be handcuffed to his bathroom tub to prevent him from further cutting the prime lending rate.
February 28, 2008 at 11:47 PM #162698ParticipantYou’re right, SD. It’s another form of fighting the price correction that really needs to happen. It may be painful, but the markets really need to be set free. Manipulation of the markets by the Fed thru monetary policy and the government thru fiscal policy needs to just STOP.
I know that what I am about to say is going to trigger vile retorts, but the real enemy is inflation. Helicopter Ben needs to be handcuffed to his bathroom tub to prevent him from further cutting the prime lending rate.
February 28, 2008 at 11:47 PM #162714ParticipantYou’re right, SD. It’s another form of fighting the price correction that really needs to happen. It may be painful, but the markets really need to be set free. Manipulation of the markets by the Fed thru monetary policy and the government thru fiscal policy needs to just STOP.
I know that what I am about to say is going to trigger vile retorts, but the real enemy is inflation. Helicopter Ben needs to be handcuffed to his bathroom tub to prevent him from further cutting the prime lending rate.
February 28, 2008 at 11:47 PM #162730ParticipantYou’re right, SD. It’s another form of fighting the price correction that really needs to happen. It may be painful, but the markets really need to be set free. Manipulation of the markets by the Fed thru monetary policy and the government thru fiscal policy needs to just STOP.
I know that what I am about to say is going to trigger vile retorts, but the real enemy is inflation. Helicopter Ben needs to be handcuffed to his bathroom tub to prevent him from further cutting the prime lending rate.
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