Walking away??

[HLS]

For the borrower that loses a house, a 1099 is known as “adding insult to injury”….

[TemekuT]

I’d be inclined to call it ” just desserts” or “you reap what you sow from buying stuff you can’t afford”.

[TemekuT]

I’d be inclined to call it ” just desserts” or “you reap what you sow from buying stuff you can’t afford”.

[TemekuT]

I’d be inclined to call it ” just desserts” or “you reap what you sow from buying stuff you can’t afford”.

[gary_broker]

If you use Point software you will find both 4506 and 8821. You are correct in stating that the forms must be submitted within 60 days of signing.

This may be BS as the info is second hand but here is what I heard from someone who works inside at CFC. Lenders routinely pull IRS data a certain percentage of loans (checking income) to perform risk analysis. I also heard the percentage of IRS requests ramped up beginning in 2005 because they did not like what they were seeing. So although it appears these IRS forms are not the lender invoked “trump card” that can be submitted years after closing (such as I thought). In the end you do not know what data the lender has gathered immediatley after the loan closed.

BTW: I see nothing in the 8821 form that states the lender is precluded from using the information obtained from legacy tax forms to verify income. It’s late and I am tired but I don’t see it.

[gary_broker]

If you use Point software you will find both 4506 and 8821. You are correct in stating that the forms must be submitted within 60 days of signing.

This may be BS as the info is second hand but here is what I heard from someone who works inside at CFC. Lenders routinely pull IRS data a certain percentage of loans (checking income) to perform risk analysis. I also heard the percentage of IRS requests ramped up beginning in 2005 because they did not like what they were seeing. So although it appears these IRS forms are not the lender invoked “trump card” that can be submitted years after closing (such as I thought). In the end you do not know what data the lender has gathered immediatley after the loan closed.

BTW: I see nothing in the 8821 form that states the lender is precluded from using the information obtained from legacy tax forms to verify income. It’s late and I am tired but I don’t see it.

[gary_broker]

If you use Point software you will find both 4506 and 8821. You are correct in stating that the forms must be submitted within 60 days of signing.

This may be BS as the info is second hand but here is what I heard from someone who works inside at CFC. Lenders routinely pull IRS data a certain percentage of loans (checking income) to perform risk analysis. I also heard the percentage of IRS requests ramped up beginning in 2005 because they did not like what they were seeing. So although it appears these IRS forms are not the lender invoked “trump card” that can be submitted years after closing (such as I thought). In the end you do not know what data the lender has gathered immediatley after the loan closed.

BTW: I see nothing in the 8821 form that states the lender is precluded from using the information obtained from legacy tax forms to verify income. It’s late and I am tired but I don’t see it.

[j]

The IRS comes after you. Your mortgage company sends you a 1099 for what they loss on the property, and and you claim that as income on your taxes. That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

[j]

The IRS comes after you. Your mortgage company sends you a 1099 for what they loss on the property, and and you claim that as income on your taxes. That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

[j]

The IRS comes after you. Your mortgage company sends you a 1099 for what they loss on the property, and and you claim that as income on your taxes. That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

[kewp]

That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

Yup! And threaten to declare bankruptcy and sue the bank for predatory lending unless the bank pays to move you out.

[kewp]

That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

Yup! And threaten to declare bankruptcy and sue the bank for predatory lending unless the bank pays to move you out.

[kewp]

That is why a go lawyer or accountant will tell you to stay in the house until the police come and kick you out. You should be able to get 10 months or so of “free” rent.

Yup! And threaten to declare bankruptcy and sue the bank for predatory lending unless the bank pays to move you out.

[bsrsharma]

sue the bank for predatory lending

I read somewhere that there are massive violations of TILA (Truth In Lending Act) in many of the subprime documentation. That makes the mortgages unsecured credit. Imagine what that will do to new mortgages!

[bsrsharma]

sue the bank for predatory lending

I read somewhere that there are massive violations of TILA (Truth In Lending Act) in many of the subprime documentation. That makes the mortgages unsecured credit. Imagine what that will do to new mortgages!

[Author]

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