Tax Implications of “Walking Away”?

[waterboy]

It could be 5-10 years before that place has any equity after any sale/transaction fees. If you can barely come up with the current overall payment and if it takes a miracle plan by the government to give out another 5yr low rate plan to all the troubled arm holders, then the decision shouldn’t be that tough.

If you got in over your head, then you got in over your head and their is not much you can do except learn from it. Talk to a CPA about tax implications, check to make sure it is non recourse, feel bad for a moment, then seriously consider walking away now. From what I hear it takes at least 3-6 months after stopping payments to get people out of their homes, so plan accordingly.

[peterb]

You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.

[peterb]

You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.

[peterb]

You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.

[peterb]

You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.

[peterb]

You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.

[joestool]

“I am looking for some advice. I bought in 09/2004 with a 0 down, 5 year ARM I/O loan. The same townhome that I paid 400k is now going for 300k.”

“My only hope is to keep paying and wait for the government to do something.”

So after taking on a wildly speculative and risky loan based on the fraudulent premise that you could afford to make the promised payments on such a mortgage product and contributing to the astronomical run up in real estate prices which prevented me from purchasing any kind of home to live in under any reasonable terms, you now
want me to also help pay to clean up after your mess through government confiscation in the form of increased taxes and inflation.
All this while asking for my advice on how you can avoid any tax implications yourself?

Do I understand correctly what you’re asking?
Just want to make sure before I tell you what I think you should do.

[joestool]

“I am looking for some advice. I bought in 09/2004 with a 0 down, 5 year ARM I/O loan. The same townhome that I paid 400k is now going for 300k.”

“My only hope is to keep paying and wait for the government to do something.”

So after taking on a wildly speculative and risky loan based on the fraudulent premise that you could afford to make the promised payments on such a mortgage product and contributing to the astronomical run up in real estate prices which prevented me from purchasing any kind of home to live in under any reasonable terms, you now
want me to also help pay to clean up after your mess through government confiscation in the form of increased taxes and inflation.
All this while asking for my advice on how you can avoid any tax implications yourself?

Do I understand correctly what you’re asking?
Just want to make sure before I tell you what I think you should do.

[joestool]

“I am looking for some advice. I bought in 09/2004 with a 0 down, 5 year ARM I/O loan. The same townhome that I paid 400k is now going for 300k.”

“My only hope is to keep paying and wait for the government to do something.”

So after taking on a wildly speculative and risky loan based on the fraudulent premise that you could afford to make the promised payments on such a mortgage product and contributing to the astronomical run up in real estate prices which prevented me from purchasing any kind of home to live in under any reasonable terms, you now
want me to also help pay to clean up after your mess through government confiscation in the form of increased taxes and inflation.
All this while asking for my advice on how you can avoid any tax implications yourself?

Do I understand correctly what you’re asking?
Just want to make sure before I tell you what I think you should do.

[joestool]

“I am looking for some advice. I bought in 09/2004 with a 0 down, 5 year ARM I/O loan. The same townhome that I paid 400k is now going for 300k.”

“My only hope is to keep paying and wait for the government to do something.”

So after taking on a wildly speculative and risky loan based on the fraudulent premise that you could afford to make the promised payments on such a mortgage product and contributing to the astronomical run up in real estate prices which prevented me from purchasing any kind of home to live in under any reasonable terms, you now
want me to also help pay to clean up after your mess through government confiscation in the form of increased taxes and inflation.
All this while asking for my advice on how you can avoid any tax implications yourself?

Do I understand correctly what you’re asking?
Just want to make sure before I tell you what I think you should do.

[joestool]

“I am looking for some advice. I bought in 09/2004 with a 0 down, 5 year ARM I/O loan. The same townhome that I paid 400k is now going for 300k.”

“My only hope is to keep paying and wait for the government to do something.”

So after taking on a wildly speculative and risky loan based on the fraudulent premise that you could afford to make the promised payments on such a mortgage product and contributing to the astronomical run up in real estate prices which prevented me from purchasing any kind of home to live in under any reasonable terms, you now
want me to also help pay to clean up after your mess through government confiscation in the form of increased taxes and inflation.
All this while asking for my advice on how you can avoid any tax implications yourself?

Do I understand correctly what you’re asking?
Just want to make sure before I tell you what I think you should do.

[ironman]

I find it rather strange : for a person that is currently pleading not knowing or not being financially astute when you bought, you appear very careful now considering all details and implications.

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

And how come you got smarter when your reset is coming near ?

I have an advice for you deadbeat :

Keep paying your loan!!! Somebody was good enough to loan you money (and no they did not tricked you into that!), so make good on your obligation!

Ironman

[ironman]

I find it rather strange : for a person that is currently pleading not knowing or not being financially astute when you bought, you appear very careful now considering all details and implications.

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

And how come you got smarter when your reset is coming near ?

I have an advice for you deadbeat :

Keep paying your loan!!! Somebody was good enough to loan you money (and no they did not tricked you into that!), so make good on your obligation!

Ironman

[ironman]

I find it rather strange : for a person that is currently pleading not knowing or not being financially astute when you bought, you appear very careful now considering all details and implications.

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

And how come you got smarter when your reset is coming near ?

I have an advice for you deadbeat :

Keep paying your loan!!! Somebody was good enough to loan you money (and no they did not tricked you into that!), so make good on your obligation!

Ironman

[ironman]

I find it rather strange : for a person that is currently pleading not knowing or not being financially astute when you bought, you appear very careful now considering all details and implications.

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

And how come you got smarter when your reset is coming near ?

I have an advice for you deadbeat :

Keep paying your loan!!! Somebody was good enough to loan you money (and no they did not tricked you into that!), so make good on your obligation!

Ironman

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