Wed,Jan.16,2008 My daughter will no longer be able to make her mortgage payments ,her bills are paid up to date as of now. There is no other way out of this. The mortgage balance is about 250,000. At the time of getting the mortgage the first loan was for 200,000 .and the mortgage company gave her a second mortgage for 50,000.Perfect example of a sub-prime mortgage. The home is probably worth 150,000.-175,000 due to market being distressed. She will also declare bankruptcy,to wipe out her credit card debt, along with any fees from mortgage company,and the impact of the house not being worth the amount of the mortgage. Would like some general infomation before she goes to a lawyer. Where does she start.Does she let the foreclosure start first or does she file for bankruptcy first? Does she file for bankruptcy while in the process of the foreclosure? Trying to avoid that 1099 on a distressed sale.Thank-you for any information
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Brian> talk to your lawyer> that is what they do.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Agree w/Bob talk to a lawyer as soon as possible.
To just touch lightly on tax implications - if the debt is discharged in bankruptcy it is not taxable. If debt is cancelled without filing bankruptcy other issues determining taxable or not would be insolvency or the new rules just passed.Comment
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