Not Really. What people don’t understand is that the banks are providing the IRS with a 1099 for the full mortgage amount due. This person better have saved it for Uncle Sam becuase he is in for a rude awakening.
I believe the true reason that the banks have not followed through with the foreclosures is because they want the home owner to suffer. Come December 31st 2012 the moritorium on your primary residency that George Bush signed into law in 2007 expires. All bets are off and everyone who forecloses will now be slaves to Uncle Sam. Can’t just go out and file chapter 7 on the IRS.
The Federal government becomes the master of all whow sign the dotted line. I now tell my son that 30 years is too long a time. No one knows what will hwppen to them in that far in the future. Unless he can pay cash for a home he will be renter for life. I am not alone. I believe his generation is seeing what home ownership has done to their parents and will not be rushing out to purchase homes or atleast approach it with eyes wide open. This housing crises is going to be with us for a very, very longtime.
I concur completely. I’m trying to short sale my house this year to get out from under the debt and get out of a neighborhood where trashy people are buying up houses for 30-40K. If the bank doesn’t accept the short sale, I’m hoping they foreclose before the end of the year so I don’t get screwed on taxes. And for the bank suck-ups out there, no I didn’t do a cash out refi, or buy more than I could afford. I bought almost 12 years ago for 175K with 10% down, and paid a little extra on the mortgage each month since a refinance in 2002, but the value has fallen to under 70K, so I’m still 50K underwater at least. It’s amazing how little principal gets paid off in the first 10 years of a 30 year mortgage. Never doing that again.