[johngaltgirl]

We did try to negotiate that… back and forth numerous times. They just wouldn’t budge. Their (very firm) stance was that they could move forward “to the extent of the law” after the short sale or something like that. Basically it took a recourse second mortgage and turned it into an unsecured loan. I think. The short sale did reduce the balance on that 2nd by about $20,000. The first lender paid of the the 2nd to get them to release it (but it didn’t really release our obligation, clearly). And both the lenders were the same (at the time of the sale – one bank bought the other while we were in process. BofA). I don’t know if BofA handles all their cases like this, but that was our experience.

As for bankruptcy. It sure is like leprosy to us. It sticks to you. It’s something you carry around with you your entire life and you need to check boxes on forms declaring it every time you apply for a job or want credit in the future (just about). Especially a personal bankruptcy. We also just have a “feeling” that we should try to pay off the debts we racked up the best we can. In the case of our home, the banks had the house for collateral. And we couldn’t see ourselves paying our way out of that one no matter how we budgeted. So… until we are unable to buy groceries that just won’t be our choice. That doesn’t mean I think any less of people that go the bankruptcy route themselves. Just a personal bias for us.

Thank you to those who sent a private message. We will start contacting people next week. We are also aware of California’s unique and creative ways they want to tax their citizens and how that might be contrary to the federal laws regarding loan forgiveness. But all this is changing so rapidly, so I don’t want to fill out those forms!

[johngaltgirl]

We did try to negotiate that… back and forth numerous times. They just wouldn’t budge. Their (very firm) stance was that they could move forward “to the extent of the law” after the short sale or something like that. Basically it took a recourse second mortgage and turned it into an unsecured loan. I think. The short sale did reduce the balance on that 2nd by about $20,000. The first lender paid of the the 2nd to get them to release it (but it didn’t really release our obligation, clearly). And both the lenders were the same (at the time of the sale – one bank bought the other while we were in process. BofA). I don’t know if BofA handles all their cases like this, but that was our experience.

As for bankruptcy. It sure is like leprosy to us. It sticks to you. It’s something you carry around with you your entire life and you need to check boxes on forms declaring it every time you apply for a job or want credit in the future (just about). Especially a personal bankruptcy. We also just have a “feeling” that we should try to pay off the debts we racked up the best we can. In the case of our home, the banks had the house for collateral. And we couldn’t see ourselves paying our way out of that one no matter how we budgeted. So… until we are unable to buy groceries that just won’t be our choice. That doesn’t mean I think any less of people that go the bankruptcy route themselves. Just a personal bias for us.

Thank you to those who sent a private message. We will start contacting people next week. We are also aware of California’s unique and creative ways they want to tax their citizens and how that might be contrary to the federal laws regarding loan forgiveness. But all this is changing so rapidly, so I don’t want to fill out those forms!

[johngaltgirl]

We did try to negotiate that… back and forth numerous times. They just wouldn’t budge. Their (very firm) stance was that they could move forward “to the extent of the law” after the short sale or something like that. Basically it took a recourse second mortgage and turned it into an unsecured loan. I think. The short sale did reduce the balance on that 2nd by about $20,000. The first lender paid of the the 2nd to get them to release it (but it didn’t really release our obligation, clearly). And both the lenders were the same (at the time of the sale – one bank bought the other while we were in process. BofA). I don’t know if BofA handles all their cases like this, but that was our experience.

As for bankruptcy. It sure is like leprosy to us. It sticks to you. It’s something you carry around with you your entire life and you need to check boxes on forms declaring it every time you apply for a job or want credit in the future (just about). Especially a personal bankruptcy. We also just have a “feeling” that we should try to pay off the debts we racked up the best we can. In the case of our home, the banks had the house for collateral. And we couldn’t see ourselves paying our way out of that one no matter how we budgeted. So… until we are unable to buy groceries that just won’t be our choice. That doesn’t mean I think any less of people that go the bankruptcy route themselves. Just a personal bias for us.

Thank you to those who sent a private message. We will start contacting people next week. We are also aware of California’s unique and creative ways they want to tax their citizens and how that might be contrary to the federal laws regarding loan forgiveness. But all this is changing so rapidly, so I don’t want to fill out those forms!

[johngaltgirl]

We did try to negotiate that… back and forth numerous times. They just wouldn’t budge. Their (very firm) stance was that they could move forward “to the extent of the law” after the short sale or something like that. Basically it took a recourse second mortgage and turned it into an unsecured loan. I think. The short sale did reduce the balance on that 2nd by about $20,000. The first lender paid of the the 2nd to get them to release it (but it didn’t really release our obligation, clearly). And both the lenders were the same (at the time of the sale – one bank bought the other while we were in process. BofA). I don’t know if BofA handles all their cases like this, but that was our experience.

As for bankruptcy. It sure is like leprosy to us. It sticks to you. It’s something you carry around with you your entire life and you need to check boxes on forms declaring it every time you apply for a job or want credit in the future (just about). Especially a personal bankruptcy. We also just have a “feeling” that we should try to pay off the debts we racked up the best we can. In the case of our home, the banks had the house for collateral. And we couldn’t see ourselves paying our way out of that one no matter how we budgeted. So… until we are unable to buy groceries that just won’t be our choice. That doesn’t mean I think any less of people that go the bankruptcy route themselves. Just a personal bias for us.

Thank you to those who sent a private message. We will start contacting people next week. We are also aware of California’s unique and creative ways they want to tax their citizens and how that might be contrary to the federal laws regarding loan forgiveness. But all this is changing so rapidly, so I don’t want to fill out those forms!

[johngaltgirl]

We did try to negotiate that… back and forth numerous times. They just wouldn’t budge. Their (very firm) stance was that they could move forward “to the extent of the law” after the short sale or something like that. Basically it took a recourse second mortgage and turned it into an unsecured loan. I think. The short sale did reduce the balance on that 2nd by about $20,000. The first lender paid of the the 2nd to get them to release it (but it didn’t really release our obligation, clearly). And both the lenders were the same (at the time of the sale – one bank bought the other while we were in process. BofA). I don’t know if BofA handles all their cases like this, but that was our experience.

As for bankruptcy. It sure is like leprosy to us. It sticks to you. It’s something you carry around with you your entire life and you need to check boxes on forms declaring it every time you apply for a job or want credit in the future (just about). Especially a personal bankruptcy. We also just have a “feeling” that we should try to pay off the debts we racked up the best we can. In the case of our home, the banks had the house for collateral. And we couldn’t see ourselves paying our way out of that one no matter how we budgeted. So… until we are unable to buy groceries that just won’t be our choice. That doesn’t mean I think any less of people that go the bankruptcy route themselves. Just a personal bias for us.

Thank you to those who sent a private message. We will start contacting people next week. We are also aware of California’s unique and creative ways they want to tax their citizens and how that might be contrary to the federal laws regarding loan forgiveness. But all this is changing so rapidly, so I don’t want to fill out those forms!

[johngaltgirl]

Thank you all for your 2 pennies. Really. It’s not exactly playdate conversation material, so I appreciate the discussion.

It was our primary residence (:(), we did a cash out refi on the second loan only to pay for the landscaping. Looking back… incredibly stupid. I could have planted the trees myself and poured a little concrete. At the time we had never heard of recourse/non-recourse and how this would change it. We had to wait 6 months on a list to get our home, wait for it to get built, etc. etc. We moved out 4 months prior to the short sale itself to secure a good rental and we did not rent it out. That would have been slimy. At least in my book. The main loan was resetting to a phenomenal variable rate so much higher than the going rate it nearly doubled our payment. We could have easily afforded a 30 year fixed on the full amount, but nobody in their right mind would refi our loan with negative equity over $250,000. Don’t blame ’em. We were shopping rates right after we moved in and waited too long on that first loan. We thought we had loads of time. Ha.

We haven’t actually been sent any 1099’s. I’m expecting one on the first mortgage, and have no idea how to plan for the 2nd. The bank just keeps calling acting like there was no short sale event at all (BofA). So how do we plan for it tax-wise? My biggest fear is garnishment. That would throw a wrench into all of our budget/debt payoff plans for sure. That’s what led me to post on this blog now… (You’re right though. If I was an investor I would not be soliciting advice here. It would be my business to know this stuff beforehand. I wish I had prepared like an investor before we took the plunge 5 years ago!)

The short sale/bank communication stuff is something for an attorney, likely. We just need someone to help us figure out our tax forms for now, the rest is on us. But I love to hear what ya’ll have to say about everything. Lots of wisdom to be had. After what we’ve been through I’m putting my kids through a “real estate school for dummies” before they graduate, so they don’t repeat our mistakes.

[johngaltgirl]

Thank you all for your 2 pennies. Really. It’s not exactly playdate conversation material, so I appreciate the discussion.

It was our primary residence (:(), we did a cash out refi on the second loan only to pay for the landscaping. Looking back… incredibly stupid. I could have planted the trees myself and poured a little concrete. At the time we had never heard of recourse/non-recourse and how this would change it. We had to wait 6 months on a list to get our home, wait for it to get built, etc. etc. We moved out 4 months prior to the short sale itself to secure a good rental and we did not rent it out. That would have been slimy. At least in my book. The main loan was resetting to a phenomenal variable rate so much higher than the going rate it nearly doubled our payment. We could have easily afforded a 30 year fixed on the full amount, but nobody in their right mind would refi our loan with negative equity over $250,000. Don’t blame ’em. We were shopping rates right after we moved in and waited too long on that first loan. We thought we had loads of time. Ha.

We haven’t actually been sent any 1099’s. I’m expecting one on the first mortgage, and have no idea how to plan for the 2nd. The bank just keeps calling acting like there was no short sale event at all (BofA). So how do we plan for it tax-wise? My biggest fear is garnishment. That would throw a wrench into all of our budget/debt payoff plans for sure. That’s what led me to post on this blog now… (You’re right though. If I was an investor I would not be soliciting advice here. It would be my business to know this stuff beforehand. I wish I had prepared like an investor before we took the plunge 5 years ago!)

The short sale/bank communication stuff is something for an attorney, likely. We just need someone to help us figure out our tax forms for now, the rest is on us. But I love to hear what ya’ll have to say about everything. Lots of wisdom to be had. After what we’ve been through I’m putting my kids through a “real estate school for dummies” before they graduate, so they don’t repeat our mistakes.

[johngaltgirl]

Thank you all for your 2 pennies. Really. It’s not exactly playdate conversation material, so I appreciate the discussion.

It was our primary residence (:(), we did a cash out refi on the second loan only to pay for the landscaping. Looking back… incredibly stupid. I could have planted the trees myself and poured a little concrete. At the time we had never heard of recourse/non-recourse and how this would change it. We had to wait 6 months on a list to get our home, wait for it to get built, etc. etc. We moved out 4 months prior to the short sale itself to secure a good rental and we did not rent it out. That would have been slimy. At least in my book. The main loan was resetting to a phenomenal variable rate so much higher than the going rate it nearly doubled our payment. We could have easily afforded a 30 year fixed on the full amount, but nobody in their right mind would refi our loan with negative equity over $250,000. Don’t blame ’em. We were shopping rates right after we moved in and waited too long on that first loan. We thought we had loads of time. Ha.

We haven’t actually been sent any 1099’s. I’m expecting one on the first mortgage, and have no idea how to plan for the 2nd. The bank just keeps calling acting like there was no short sale event at all (BofA). So how do we plan for it tax-wise? My biggest fear is garnishment. That would throw a wrench into all of our budget/debt payoff plans for sure. That’s what led me to post on this blog now… (You’re right though. If I was an investor I would not be soliciting advice here. It would be my business to know this stuff beforehand. I wish I had prepared like an investor before we took the plunge 5 years ago!)

The short sale/bank communication stuff is something for an attorney, likely. We just need someone to help us figure out our tax forms for now, the rest is on us. But I love to hear what ya’ll have to say about everything. Lots of wisdom to be had. After what we’ve been through I’m putting my kids through a “real estate school for dummies” before they graduate, so they don’t repeat our mistakes.

[johngaltgirl]

Thank you all for your 2 pennies. Really. It’s not exactly playdate conversation material, so I appreciate the discussion.

It was our primary residence (:(), we did a cash out refi on the second loan only to pay for the landscaping. Looking back… incredibly stupid. I could have planted the trees myself and poured a little concrete. At the time we had never heard of recourse/non-recourse and how this would change it. We had to wait 6 months on a list to get our home, wait for it to get built, etc. etc. We moved out 4 months prior to the short sale itself to secure a good rental and we did not rent it out. That would have been slimy. At least in my book. The main loan was resetting to a phenomenal variable rate so much higher than the going rate it nearly doubled our payment. We could have easily afforded a 30 year fixed on the full amount, but nobody in their right mind would refi our loan with negative equity over $250,000. Don’t blame ’em. We were shopping rates right after we moved in and waited too long on that first loan. We thought we had loads of time. Ha.

We haven’t actually been sent any 1099’s. I’m expecting one on the first mortgage, and have no idea how to plan for the 2nd. The bank just keeps calling acting like there was no short sale event at all (BofA). So how do we plan for it tax-wise? My biggest fear is garnishment. That would throw a wrench into all of our budget/debt payoff plans for sure. That’s what led me to post on this blog now… (You’re right though. If I was an investor I would not be soliciting advice here. It would be my business to know this stuff beforehand. I wish I had prepared like an investor before we took the plunge 5 years ago!)

The short sale/bank communication stuff is something for an attorney, likely. We just need someone to help us figure out our tax forms for now, the rest is on us. But I love to hear what ya’ll have to say about everything. Lots of wisdom to be had. After what we’ve been through I’m putting my kids through a “real estate school for dummies” before they graduate, so they don’t repeat our mistakes.

[johngaltgirl]

Thank you all for your 2 pennies. Really. It’s not exactly playdate conversation material, so I appreciate the discussion.

It was our primary residence (:(), we did a cash out refi on the second loan only to pay for the landscaping. Looking back… incredibly stupid. I could have planted the trees myself and poured a little concrete. At the time we had never heard of recourse/non-recourse and how this would change it. We had to wait 6 months on a list to get our home, wait for it to get built, etc. etc. We moved out 4 months prior to the short sale itself to secure a good rental and we did not rent it out. That would have been slimy. At least in my book. The main loan was resetting to a phenomenal variable rate so much higher than the going rate it nearly doubled our payment. We could have easily afforded a 30 year fixed on the full amount, but nobody in their right mind would refi our loan with negative equity over $250,000. Don’t blame ’em. We were shopping rates right after we moved in and waited too long on that first loan. We thought we had loads of time. Ha.

We haven’t actually been sent any 1099’s. I’m expecting one on the first mortgage, and have no idea how to plan for the 2nd. The bank just keeps calling acting like there was no short sale event at all (BofA). So how do we plan for it tax-wise? My biggest fear is garnishment. That would throw a wrench into all of our budget/debt payoff plans for sure. That’s what led me to post on this blog now… (You’re right though. If I was an investor I would not be soliciting advice here. It would be my business to know this stuff beforehand. I wish I had prepared like an investor before we took the plunge 5 years ago!)

The short sale/bank communication stuff is something for an attorney, likely. We just need someone to help us figure out our tax forms for now, the rest is on us. But I love to hear what ya’ll have to say about everything. Lots of wisdom to be had. After what we’ve been through I’m putting my kids through a “real estate school for dummies” before they graduate, so they don’t repeat our mistakes.

[johngaltgirl]

I think I was too vague in my original post. We do not want to go the bankruptcy route, even if it papers out. Attorneys I can find, it’s the cpa’s that seem to be hiding. 🙂

[johngaltgirl]

I think I was too vague in my original post. We do not want to go the bankruptcy route, even if it papers out. Attorneys I can find, it’s the cpa’s that seem to be hiding. 🙂

[johngaltgirl]

I think I was too vague in my original post. We do not want to go the bankruptcy route, even if it papers out. Attorneys I can find, it’s the cpa’s that seem to be hiding. 🙂

[johngaltgirl]

I think I was too vague in my original post. We do not want to go the bankruptcy route, even if it papers out. Attorneys I can find, it’s the cpa’s that seem to be hiding. 🙂

[johngaltgirl]

I think I was too vague in my original post. We do not want to go the bankruptcy route, even if it papers out. Attorneys I can find, it’s the cpa’s that seem to be hiding. 🙂

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