Hello! I'm new to the forums and I am so glad I found this useful website. Hopefully someone out there will give me some insight and what's next to come in our situation.
We moved here about three years ago. First time buyers, 100% financed loan @ 7.37% for 30 years. We were on cloud nine when we found out we qualified for the full $200,000 without any down. Our home was beautiful and small. But ours and a wonderful investment. Or so we thought.
Forward on over to July of 2008. I was helping a dear friend look for houses on an MLS listing website. I found that my exact home model, down the street, was valued at a measly $80,000. My jaw dropped and I began to cry out of anger. We owed $180,000 @ $1780.00 month on a 1240 sq ft. home. So bad. Anyway, I started researching our foreclosure laws and found it a better decision to walk away and swallow our pride.
We had no hardships. We were easily paying $1000 over our monthly payment to finish the loan off in 12 or 13 years. We weren't saving very much either though. Well, thus far it's worked out for us. We're happy and the weight that was sitting ever so harshly on our shoulders, disappeared. I do however, have a couple of ?'s to ask the mods or anyone interested in pitching in.
My parents bought a house here for us to live in. They're charging us the mortgage payment for the other house on this one. This is a 2000+ sq ft. home and they only payed $114,000 on it. I was so astonished! They don't wanna include our name (husband and I) on the title until the house is payed off in about 4 or 5 years. Is this smart? How can we go about it?
Second question: will we have to disclose anything to my tax preparer in regards to the foreclosure when it happens?
Third: Will we owe anything when this whole process clears?
Thanks for taking the time to listen to me. We're still a bit confused about this whole situation and we wanna know what's next to come