This is a series of related questions. Is it true that after Jan. 1st, anyone who is foreclosed on will be taxed on the difference between what is owed on their home, and whatever the bank sells it for? Is that how it works? Is that what happened before, or have banks traditionally ignored going after people for the difference?
If this is counted as income
, then is it counted as income for last year or next year?
How much of that will be taxed? On 100k for instance, since he is upside down by that much, how much could he expect to be taxed for?
Is there any way to push a foreclosure through ahead of the Dec. 2013 deadline
He has been making the payments, is current, but it's not wise financially to keep paying for a house when he owes $187k on a house worth maybe only 87k to a contractor to tear down or flip. Forty years of deferred maintenance, inside smoker, and cats that have had their way in the house. This house needs new everything, and foundation work as well.
He will make about 87k in income this year, but only 30k in soc sec next year, or if he works the first six months of next year, about 58,6k. Would it be smarter to foreclose this year, before Dec. or next year since his income will be lower?
What is the likelihood of the forgiveness being extended through 2014?
What would you recommend? We are not interested in short sales
, only foreclosure. Is there any way to do a foreclosure without hurting his excellent credit
rating? He just paid off 60k in CC bills over the past 2.5 years.
Can they take his truck? (payments are made by corporation owned by the family)
Can they take his stock holdings? Is there any way to protect his income, savings, stocks?