Bonneville America Forums Forums Off Topic Discussion Forums Lounge Relief for mortgage debt - IRS news

Here is a link to some recent information from IRS about helping out with some of the home mortgage defaults. Maybe someone here will be helped out with the information or pass along to others.
IRS News

That's really big of them. During the real estate slump some years ago, a friend of mine was told by the bank to cough up $60K to get their loan balance below their current house value or move out. The bank stole their house and all the payments they had made, then the IRS taxed them for becoming homeless.

Wow. I didn't screw up by buying a house that I couldn't afford*. Where's my tax break? Oh, right, I get $600 to 'kickstart the economy.' Feh.





*Yes, I know this is a crass generalization. Sue me.

The problem isn't so much that people are buying houses they can't afford as the banks are run by business majors. The market gets soft, as it is now, and the banks realize the houses aren't worth as much as they lent for them. Joe Average is still making his monthly payments in hope that, by the time he is ready to retire, his house will be worth more than he paid. Then Bobby Banker, MBA that he is, realizes that Joe's house might not be worth as much as the loan right now today. Fearing that Joe might walk away and leave the bank stuck, calls and says, "Your house is worth $100K less than you owe. So, pay up $100K now and we will go on as usual. Otherwise, move out and we'll forgive whatever you owe more than we can get at auction." Since few people have that much cash laying around, Joe and his family move into their minivan, Bobby's bank eats it on half the houses they've lent money on and goes into receivership. Naturally, Bobby gets a huge cashout and moves on to destroy another lender along with the lives of hundreds of lendees.

Gee, if I had only bought more house than I could afford, I could have yall buy it for me now !

Most around here got sub-prime on mini-mansions out of their price range,,,,,lets not forget the politicians who relaxed the lending rules that allowed our business majors in the banking system to make these stupid loans.....and lets not forget the dumb fishes that took the bait !!!
If you can't afford it, don't buy it, OR get a second job to pay for it !.......

I think it was Vanderbilt "if all the money was taken from the rich and given to the poor, in ten years the rich would be rich again"

You guys do know that almost all the lottery winners in the country are poor again.

You lost me Ed, what mortgage is that where they can put you out if you are making the payments?

Everybody caught up in this mess was "gaming the system", from the loan managers pushing their load officers(who are now unemployed) to meet their quotas for the month, to the people who put no money down and bought a house they couldn't afford, to Wall Street who jumped on the band wagon and bought up these loans from the banks and S&Ls on spec.

But...ahem...as "we know", we don't need no "darn government" to regulate stuff like this, "right"?!

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will be helped out with the information or pass along to others.

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Maybe Latrelle Sprewell can get his $290,000 house out of foreclosure. They auctioned his yacht last month, to pay the $1.3 million owed on the boat. Bless his heart, he's only made $70 million in the last 8 years. Now he can't even feed his family.

Nice how banks steal homes, dumb business majors hand ut bad loans and steal from homeowners that are upside down. How is it the homeowner is totally devoid of responsibility here? How is it the banks/mortgage companies are the bad guys? How is it, or where is it that homes are guaranteed to increase in value? Or that outcomes in life are guaranteed to end well?

Perhaps I should not have posted this. I will try and make better decisions before passing on any further info.

Jack,

You did good. The best idea when posting info which may help someone out, is to just post it and fergit it. Reading responses of those who have opinions for ( ) or against ( )the information is frustrating but doesn't diminish the chance that someone who reads it may benefit. That was your reason to begin with, right?

There are no shortages of opinions here or of those who would share them. I'm one of those as well.

Hey,,,,it is perversly fun to discuss essoteric topics.

I can keep posting and will. I have much of the same feelings of some of those that did post, but being in the business I am I look for every out I can for any one that can get a benefit to lessen their taxes that may be owed.