Should I stay or should I go Part II?

[Deal Hunter]

Real Options, Real Consequences

If you walk away, you’ll save money, but you’ll still be liable for the bank’s loss unless you settle it formally through a short sale or bankruptcy. If your 2nd is a credit card type of HELOC rather than a closed 2nd mortgage, they can pursue you for that debt for 20 years! If you are really lucky, the banks will discharge your obligations in the foreclosure and not go after you, but if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!

You can still do a short sale even if you are current and on time on your payments. You will need a REALLY REALLY good and EXPERIENCED short sale realtor. The first thing to do is write a letter to the lender explaining that you have a financial hardship and will not be able to continue paying. (Just know that if you stop paying while you wait for the answer, your credit will suffer.)

If you are really tapped out, you have no choice but to take the credit hit on late payments until a short sale is approved. KEEP TRYING TO DO THE SHORT SALE. It will stall a foreclosure for a while.

Another suggestion I have is to tell the lender to stop calling you and to only communicate with you via email or letter. It’s your right and you have documentation of your correspondence.

[SD Realtor]

Please see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.

Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.

SD Realtor

[SD Realtor]

Please see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.

Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.

SD Realtor

[SD Realtor]

Please see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.

Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.

SD Realtor

[SD Realtor]

Please see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.

Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.

SD Realtor

[SD Realtor]

Please see the advice that I gave the previous distressed seller in that other post. First thing I would recommend is to call your lender. It is not hard to do and dealing with the issue is the best thing to do. What sdrealtor said makes alot of sense. One current short sale I have, the second mortgage has been totally wiped out for the cost of $1000 and the first has formally accepted a 60k loss. Both lenders have agreed not to pursue the deficiency. Additionally the sellers had been in default for quite awhile. It has been a royal pain in the rear they are quite relieved. The short sale package was not trivial to fill out. Lenders all vary with the acceptance of a short sale. I would absolutely take everything you read here with a grain of salt. If you want to not talk to your lender that is your prerogative but I would advise you to talk to an attorney if you are going to play cat and mouse with them.

Whether your lender will let you wipe out the second totally or buy it for pennies on the dollar is not known to me but it sure couldn’t help to try.

SD Realtor

[patientlywaiting]

” if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!”

FALSE. New law makes this non taxable.

SD Reator, et al, short-sale works only for people who are in financial straights (because you need to complete the hardship package and prove that you are “deserving”).

I believe that this couple here is wanting to do jingle mail or voluntary foreclosure.

[patientlywaiting]

” if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!”

FALSE. New law makes this non taxable.

SD Reator, et al, short-sale works only for people who are in financial straights (because you need to complete the hardship package and prove that you are “deserving”).

I believe that this couple here is wanting to do jingle mail or voluntary foreclosure.

[patientlywaiting]

” if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!”

FALSE. New law makes this non taxable.

SD Reator, et al, short-sale works only for people who are in financial straights (because you need to complete the hardship package and prove that you are “deserving”).

I believe that this couple here is wanting to do jingle mail or voluntary foreclosure.

[patientlywaiting]

” if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!”

FALSE. New law makes this non taxable.

SD Reator, et al, short-sale works only for people who are in financial straights (because you need to complete the hardship package and prove that you are “deserving”).

I believe that this couple here is wanting to do jingle mail or voluntary foreclosure.

[patientlywaiting]

” if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!”

FALSE. New law makes this non taxable.

SD Reator, et al, short-sale works only for people who are in financial straights (because you need to complete the hardship package and prove that you are “deserving”).

I believe that this couple here is wanting to do jingle mail or voluntary foreclosure.

[patientlywaiting]

I like said before, Dave Pierce that 30 veteran of real estate is going through voluntary foreclosure.

Would you believe that a 30 years veteran realtor has no equity from his previous houses?

I think that the accumulated equity has been safely transfered to his children and he’s just protecting his assets by this jingle-mail action.

If veteran industry insiders are doing voluntary foreclosures to propect their assets, you’d be stupid to keep on paying HOPING for a future payback. Protect what you have NOW before it goes poof!!

http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html

[patientlywaiting]

I like said before, Dave Pierce that 30 veteran of real estate is going through voluntary foreclosure.

Would you believe that a 30 years veteran realtor has no equity from his previous houses?

I think that the accumulated equity has been safely transfered to his children and he’s just protecting his assets by this jingle-mail action.

If veteran industry insiders are doing voluntary foreclosures to propect their assets, you’d be stupid to keep on paying HOPING for a future payback. Protect what you have NOW before it goes poof!!

http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html

[patientlywaiting]

I like said before, Dave Pierce that 30 veteran of real estate is going through voluntary foreclosure.

Would you believe that a 30 years veteran realtor has no equity from his previous houses?

I think that the accumulated equity has been safely transfered to his children and he’s just protecting his assets by this jingle-mail action.

If veteran industry insiders are doing voluntary foreclosures to propect their assets, you’d be stupid to keep on paying HOPING for a future payback. Protect what you have NOW before it goes poof!!

http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html

[patientlywaiting]

I like said before, Dave Pierce that 30 veteran of real estate is going through voluntary foreclosure.

Would you believe that a 30 years veteran realtor has no equity from his previous houses?

I think that the accumulated equity has been safely transfered to his children and he’s just protecting his assets by this jingle-mail action.

If veteran industry insiders are doing voluntary foreclosures to propect their assets, you’d be stupid to keep on paying HOPING for a future payback. Protect what you have NOW before it goes poof!!

http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html

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