You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #8: Foreclosure, loss of credit as to a future mortgage and everything else and personal liability for [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jun-20-12 09:12 AM
Response to Original message
8. Foreclosure, loss of credit as to a future mortgage and everything else and personal liability for
the deficit, including having an involuntary bankrupcy filed against you.

Once upon a time long ago in most states, the only remedy a mortgage lender had was to foreclose on the home (aka nonrecourse mortgage).

Then came the ability to ruin your credit for years and years.

Then came the ability to sue you for the difference between whatever the lender got from your home after foreclosure and the full amount of the mortgage, including late fees, interest on interest, etc. And if you can't pay, the judgment is good for 20 years.

So, good luck finding a landlord who will rent to you because you most definitely will not find another mortgage lender, except maybe a wealthy family member who loves you A LOT.

Also, you will owe extra taxes on forgiveness of indebtedness. Congress did provide temporary relief from the tax bit, but that expired and has not been renewed. And, supposedly, the mortgage relief Congress passed was designed to fail. Whether or not that is so, very few people who were underwater were able to get any benefit from that bill.

that's why people don't just walk away. I have a family member going through this.

He just had a mini-stroke, which I very much suspect was because of the stress his underwater mortgage, combined with this loser economy, has caused him.

Printer Friendly | Permalink |  | Top
 

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC