[seattle-relo]

So Sandiego, are you considering this because you are having a hard time keeping up with your finances and aren’t saving for retirement? Or is it because you’re pissed about your lost down payment and your condo losing more value? It seems that if you are struggling, perhaps it’s not a bad idea to walk, the bank certainly isn’t going to pay for your retirement just because you stuck it out. But if you’re doing great financially, what does it really matter? Yes the market is going down, but in the end you really don’t know how this is going to play out.
The moral issue is complicated, it’s really your call. You are the one to have to live with your decisions, no one else. I will say that I totally understand how you feel, we bought last year and have already “lost” our downpayment, it sucks and I do feel pissed on many levels, but the truth is it’s out of everyones control.
If you are considering walking, I would meet with an attorney to verify that you do indeed have nonrecourse loans. BTW, I don’t believe you will have debt forgiveness tax with nonrecourse as some people are saying…you certainly want to check that out to be sure.
Good luck with whatever decision you make, but be mindful that you need to get your emotions out of the decision you make.

[seattle-relo]

Marion,

I am sure you already know this, but one of the school psychologists at Poway Unified is on maternity leave, and who knows perhaps after holding her little bundle of joy for 6 weeks, she may not want to return…just a heads up.

Congratulations on finishing your master’s while going through such a challenging time in your life – it takes a ton of courage!

Good Luck to you.

[seattle-relo]

Marion,

I am sure you already know this, but one of the school psychologists at Poway Unified is on maternity leave, and who knows perhaps after holding her little bundle of joy for 6 weeks, she may not want to return…just a heads up.

Congratulations on finishing your master’s while going through such a challenging time in your life – it takes a ton of courage!

Good Luck to you.

[seattle-relo]

Marion,

I am sure you already know this, but one of the school psychologists at Poway Unified is on maternity leave, and who knows perhaps after holding her little bundle of joy for 6 weeks, she may not want to return…just a heads up.

Congratulations on finishing your master’s while going through such a challenging time in your life – it takes a ton of courage!

Good Luck to you.

[seattle-relo]

Marion,

I am sure you already know this, but one of the school psychologists at Poway Unified is on maternity leave, and who knows perhaps after holding her little bundle of joy for 6 weeks, she may not want to return…just a heads up.

Congratulations on finishing your master’s while going through such a challenging time in your life – it takes a ton of courage!

Good Luck to you.

[seattle-relo]

Marion,

I am sure you already know this, but one of the school psychologists at Poway Unified is on maternity leave, and who knows perhaps after holding her little bundle of joy for 6 weeks, she may not want to return…just a heads up.

Congratulations on finishing your master’s while going through such a challenging time in your life – it takes a ton of courage!

Good Luck to you.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

I feel bad for these people, not sorry, just bad that things are just going to get worse for them, and that they can’t see that yet. I think they should have just let their house foreclose, in the long run they’d just be better off. If they had nonrecourse loans (which I think they had) they wouldn’t be 1099 taxed, all they would have was bad credit -not the end of the world. Now with the changes that Countrywide made, they will be in more trouble because then they will be taxed and possibly sued when the eventually end up in foreclosure sometime down the road. Wow, I wonder how much they paid for that guy to give them awful advice?

I have some good friends in Texas who are the poster children for hyperconsumption, and they just never get it, and I think they never will. One day I suggested the book The Millionaire Next Door, and they just laughed at me. “What, save money? Don’t spend half your income on housing! Ha! That’s crazy!” They were in such a great position when they moved, they could have bought a very nice house for cash, but no…they bought a McMansion, and put in a 100K outdoor kitchen and pool. They have already taken out a second to pay off credit cards (which they ended up not paying them, and spending it on other things). They are hurting, but haven’t learned their lesson.

It seems that people need to hit bottom, and really experience the consequences of their decisions to finally have the courage to make changes. They are in denial, just like an addict, and need help to see through the mess they’ve gotten themselves into. Unfortunately the help they seek out (bad financial planners, loan officers to refi, etc), continues to enable them…It’s like a counselor at a drug treatment center giving a heroin addict cocaine…makes no sense.

[seattle-relo]

You are right about a 1099, but you might be liable for capital gains tax on a nonrecourse loan. The clients that I am working with are planning to see a CPA next week, so after they meet with him/her I’ll hear more about it, and get all the juicy details 🙂 I’m not sure if that congress bill address capital gains tax after foreclosure, I know it addresses the debt forgiveness tax from short sales/foreclosure.

[seattle-relo]

You are right about a 1099, but you might be liable for capital gains tax on a nonrecourse loan. The clients that I am working with are planning to see a CPA next week, so after they meet with him/her I’ll hear more about it, and get all the juicy details 🙂 I’m not sure if that congress bill address capital gains tax after foreclosure, I know it addresses the debt forgiveness tax from short sales/foreclosure.

[seattle-relo]

You are right about a 1099, but you might be liable for capital gains tax on a nonrecourse loan. The clients that I am working with are planning to see a CPA next week, so after they meet with him/her I’ll hear more about it, and get all the juicy details 🙂 I’m not sure if that congress bill address capital gains tax after foreclosure, I know it addresses the debt forgiveness tax from short sales/foreclosure.

[seattle-relo]

You are right about a 1099, but you might be liable for capital gains tax on a nonrecourse loan. The clients that I am working with are planning to see a CPA next week, so after they meet with him/her I’ll hear more about it, and get all the juicy details 🙂 I’m not sure if that congress bill address capital gains tax after foreclosure, I know it addresses the debt forgiveness tax from short sales/foreclosure.

[Author]

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