Posted on 01/30/2008 5:52:34 AM PST by RDTF
bump for later read.
(re lien stripping, automatic stay, ch 13)
I will do that this morning. Thanks
I am fortunate in that I am not desperate yet. I put 10% down and I have some equity but the ARM is 11.25 now.
We were fortunate. When things got tight we contacted our mortgage company before we missed a payment. They proposed “interest only” payments until we were able to get back on our feet, to which we agreed.
If this becomes a trend, the banks are well and truly screwed.
Depends on what state the property is in. For example, in FL, there is no incentrive for lenders to work with homeowners. If the property is sold for a loss, or foreclosed upon, the mortgage holder is still liable for the difference between what the property sold for and what was owed on the mortgage. Walking away does not wok in FL. Only bankruptcy will protect you. But then, you are still liable for your unsecured debts due to the bankruptcy law changes from a few years ago.
I’m sorry to hear that. I wish you the best of luck and hope that everything works out OK.
Debt forgiveness is considered income by the IRS. For example, you had a loan for $100K, can't make the payments and the loan has $75K left on it. You are forgiven this $75K by the bank. So you got $100K from a bank and repaid only $25K. That means the bank technically gave you $75K and that counts as income and you will have to pay federal and state income taxes on it.
The immediate question is ..... what did they do with the $315,000 that they borrowed against the “equity”? Bought the house for $160 and owe $375?
Actually Short Sales are about a 1-5% chance of happening. It takes at least 30-90 days for the bank to make a decision of they will accept it, and that’s after jumping through hoops just to get them to even say they will concider it. And few buyers are going to sit around for 3 months waiting for a yes.
...that recorded deed may be visible online through the county online records search database.
Gonna cry myself to sleep about that, you betcha.
Maybe next time "the banks" will try some exotic, sophisticated strategy like CHECKING PEOPLE OUT BEFORE LENDING THEM MONEY. You think??
That is one bad thing about FR.
I have people call me a lush just because of my screen name.
Back in the day, mortgage companies made money by collecting interest on their book of loans. They had a vested interest in loaning only to those who could demonstrate willingness and ability to make the payments.
In recent years, the mortgage industry's business plan has become essentially transaction driven. Money is made by fees charged to write, package, and sell loans to parties further along the food chain.
With that in mind, it should surprise no one that the only one who gives a damn about repayment is the institution who is holding the bag when the bubble finally bursts.
not so fast.
do not lump all debts together.
there ARE some lien stripping cases working through the court system and legislation to fix the lien stipping issue.
You already have such lien stipping BACK with regards to motor vehicle sales.
Lien stripping, for those who don’t know, is when a piece of collateral undersecures a loan. The UNsecured portion is stripped off into the unsecured nonpriority debt and the collateral only secures that portion of the loan equal to the value of the collateral.
The changes have become a joke. While at the start it was 85% of debtors were not affected by the “forced 13” provisions, it has now steadily increased.
The debt consololation agencies that have sprouted up are just as predatory as the sub prime lenders.
And you might be able to view this info online. I can view our docs here in Arizona.
no debt is the only good debt
there is one additional part of the equation.
The lender, and subsequent note buyer, thought they were “secured” because they could always sell the property. They did not calculate a “25%” correction in their formula.
the “sub prime mess” is really about bad COLLATERAL calculations. When forclosers were for skrocketing value properties there was no crisis.
Good luck to you...I mean it...alot here on FR will go on and on and on how they never use a credit card, yadayadayada...but living where I do (S. W. Pa) I have known alot of good people who have ended up in foreclosure situations. It unfortunately happens, but there are options...explore them. Best wishes to you and your family, FRegards, PaMom.
Make sure you photograph/film each room (and probably the outside) and have the current newspaper’s front page (readable) somewhere in the picture. Then if the place gets trashed and they come on you for repairs, you have proof that you left the place in good condition.
If a person surrenders the home in bankruptcy, the unsecured portion of the debt is discharged. There is also no 1099 because the debt was not forgiven.
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