Loans, Debt & Credit - View Single Post - Walking away in CA, delayed forclosure, advice needed

pcuser123 · 12-03-2008, 09:11 PM

I am trying to cover all my bases prior to walking away in CA. I have 2 loans with countrywide (purchase money non recourse loans) and will miss my first payment this month. Listed my situation a few posts ago.

I am aware of the foreclosure act of 2007 that will not hold you accountable for the shortfall of what the bank gets for your house vs what you owe, in terms of them sending you a 1099 and considering it taxable income. Unfortunately this act only covers forclosures till 2009.

Now if I play games with the bank and live in it for a long period before they forclose and they don't recoup the money until say 1/2010. Will I be held accountable for the 1099. I think I would based on the forclosure act.

When does the bank generate the 1099?? When the house is sold?? there are Bank owned properties in my area not selling for months.

Is it a could idea just for them to forclose sooner. I wanted to live in the house as long as I could prior to getting kicked out. I paid 400 k for the home and i could be worth only 200. if they send me a 1099 for 200 k, were talking about owing 40-50 k to the irs.

Just checking what everyone thinks.

12-03-2008, 09:11 PM	#4 (permalink)
pcuser123 Member Join Date: Nov 2008 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	100 percent sure that I will walk away in CA, but scared I am trying to cover all my bases prior to walking away in CA. I have 2 loans with countrywide (purchase money non recourse loans) and will miss my first payment this month. Listed my situation a few posts ago. I am aware of the foreclosure act of 2007 that will not hold you accountable for the shortfall of what the bank gets for your house vs what you owe, in terms of them sending you a 1099 and considering it taxable income. Unfortunately this act only covers forclosures till 2009. Now if I play games with the bank and live in it for a long period before they forclose and they don't recoup the money until say 1/2010. Will I be held accountable for the 1099. I think I would based on the forclosure act. When does the bank generate the 1099?? When the house is sold?? there are Bank owned properties in my area not selling for months. Is it a could idea just for them to forclose sooner. I wanted to live in the house as long as I could prior to getting kicked out. I paid 400 k for the home and i could be worth only 200. if they send me a 1099 for 200 k, were talking about owing 40-50 k to the irs. Just checking what everyone thinks.