chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
The person identified as Lynn in this piece...
I have absolutely no sympathy for her. She just pulled all of the money out of her overvalued house and lost it. Doesn't say what the business was... how much do you want to bet that it was something to do with houses??
She seems to be working, is not paying any of her mortgage obligation, and is hoping to get bailed out her $600k business failure??
No wonder banks are not clearing the books... these situations will probably break a few more banks!
Foreclosure limbo: Staying without paying. - Jun. 9, 2011
At a minimum that woman will get hit with federal income tax for any loan forgiveness... it seem that the federal act only protects certain people in certain situations.
http://www.alperlaw.com/mortgage_fcdef.html
http://www.foreclosurelawfirms.com/topics.cfm/anti-deficiency-laws.html
I have absolutely no sympathy for her. She just pulled all of the money out of her overvalued house and lost it. Doesn't say what the business was... how much do you want to bet that it was something to do with houses??
She seems to be working, is not paying any of her mortgage obligation, and is hoping to get bailed out her $600k business failure??
No wonder banks are not clearing the books... these situations will probably break a few more banks!
Foreclosure limbo: Staying without paying. - Jun. 9, 2011
At a minimum that woman will get hit with federal income tax for any loan forgiveness... it seem that the federal act only protects certain people in certain situations.
http://www.alperlaw.com/mortgage_fcdef.html
Since Florida does not seem to have anti-deficiency protection... she will probably be on the hook for some of that debt she accumulated when she extracted it from the over-inflated value of the house!In December, 2007, Congress acted to protect many debtors from income tax liability associated with foreclosure avoidance. The Mortgage Forgiveness Debt Relief Act of 2007 states that homeowners will not be subject to income tax from release from mortgage liability if and to the extent the mortgage proceeds were used to buy or improve their primary residence. There is no income tax shelter from foregiveness of mortgage debts for investment property, vacation homes, or mortgages used for businesses or to pay off credit card balances. You should speak with an attorney or CPA familiier with the new law to see if you qualify for income tax protection.
http://www.foreclosurelawfirms.com/topics.cfm/anti-deficiency-laws.html