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Writeoffs for Mortgage Debtors, Then the Tax Bill
invite response
2014 Feb 4, 8:14pm 853 views 2 comments
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Default,Squat & force the banks to foreclose on the debt.
Has anyone here benefited from TBTF?
Hope you've done well with near zero interest loans from the FED to invest in your real estate empire.
HydroCabron
2014 Feb 7, 3:06am
We need to reach out to these poor unfortunate souls, who are struggling to stay in homes they no longer have any claim to, and throw them the life line of foreclosure. Foreclosure ends the pain of debt servitude, gets you out from under crushing mortgage payments and maintenance expenses, and puts you in an affordable rental.
Pack and get out, already. If necessary, get a second job for a few months to pay off that tax bill. Then start fresh.
Is there a problem with this?
Come tax time, JPMorgan Chase will be able to write off the $1.5 billion in debt relief it must give homeowners to satisfy the terms of a recent settlement.
But the homeowners who receive the help will have to treat it as taxable income, resulting in whopping tax bills for many families who have just lost their homes or only narrowly managed to keep them.
They are not alone. A tax exemption for mortgage debt forgiveness, put in place when the economy began to falter in 2007, was allowed to expire on Dec. 31, leaving hundreds of thousands of struggling homeowners in financial limbo even as the Obama administration has tried to encourage such debt write-downs.
http://www.cnbc.com/id/101391226
#housing