How do I figure out the tax consequence of forclosure? - Loan Modification Forum

KimTennis · 09-30-2008, 08:27 AM

What is the tax consequences of foreclosure? If I purchased a house for $345,000 in 2003 and got a first mortgage for $274,300, then refinanced the house a couple of years later and got a new first mortgage for $450,000 in 2005, what would be the tax I owe if I now let the house go to foreclosure? The payments on the house have just shot up and I just can’t continue to be in such a big hole every month. Any assistance would be appriciated.

Moe Bedard · 09-30-2008, 08:45 AM

Kim,

that would be a question for a tax attorney or accountant...........

KimTennis · 09-30-2008, 12:12 PM

Will a lender work with me on a short sale if I keep making the monthly mortgage payments? I have not missed any payments so far. I'm thinking about a Deed ILO foreclosure or a short sale. I'd like my credit to be damaged as little as possible. I guess I'm trying to figure out the best option to get out of an upside down mortgage on investment property? I can keep making the payments for a while longer but since the loan is interest only I'm not making any headway. Any opinions would be welcome.

Moe Bedard · 10-01-2008, 01:04 AM

Kim............. you would need to contact the lender and see what options the investor on the loan has..................this will help you be able to make an informed decision that will work best for you.

deeh283 · 10-01-2008, 06:47 PM

Are some lender working with investment properties?

KimTennis · 10-10-2008, 09:49 AM

I've been looking for several weeks now. So far I found one who said they'd do an ARM but won't tell me the rate unless I make loan app. I think it's bogus. I can't find anyone else who will even consider it. The current lender finally accepted all my paperwork and said they'd have an answer for me in 60 days on a loan mod.

09-30-2008, 08:27 AM	#1 (permalink)
KimTennis Member Join Date: Sep 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	How do I figure out the tax consequence of forclosure? What is the tax consequences of foreclosure? If I purchased a house for $345,000 in 2003 and got a first mortgage for $274,300, then refinanced the house a couple of years later and got a new first mortgage for $450,000 in 2005, what would be the tax I owe if I now let the house go to foreclosure? The payments on the house have just shot up and I just can’t continue to be in such a big hole every month. Any assistance would be appriciated.

09-30-2008, 08:45 AM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How do I figure out the tax consequence of forclosure? Kim, that would be a question for a tax attorney or accountant........... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

09-30-2008, 12:12 PM	#3 (permalink)
KimTennis Member Join Date: Sep 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Can you pay the mortgage AND get a short sale? Will a lender work with me on a short sale if I keep making the monthly mortgage payments? I have not missed any payments so far. I'm thinking about a Deed ILO foreclosure or a short sale. I'd like my credit to be damaged as little as possible. I guess I'm trying to figure out the best option to get out of an upside down mortgage on investment property? I can keep making the payments for a while longer but since the loan is interest only I'm not making any headway. Any opinions would be welcome.

10-01-2008, 01:04 AM	#4 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How do I figure out the tax consequence of forclosure? Kim............. you would need to contact the lender and see what options the investor on the loan has..................this will help you be able to make an informed decision that will work best for you. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

10-01-2008, 06:47 PM	#5 (permalink)
deeh283 Member Join Date: Sep 2008 Posts: 14 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How do I figure out the tax consequence of forclosure? Are some lender working with investment properties?

10-10-2008, 09:49 AM	#6 (permalink)
KimTennis Member Join Date: Sep 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How do I figure out the tax consequence of forclosure? I've been looking for several weeks now. So far I found one who said they'd do an ARM but won't tell me the rate unless I make loan app. I think it's bogus. I can't find anyone else who will even consider it. The current lender finally accepted all my paperwork and said they'd have an answer for me in 60 days on a loan mod.

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