Housing Bailout???

[OCBob]

You know, there is a way the feds could help me out in my situation. That would be to forgive tax on the "income" when my house is finally sold by the bank.

Let me explain this a little more. Because of the huge drop in prices when my house is sold it will probably be around 200k or more less than what I owe on it. In Cali, when the banks foreclose they are typically stuck with whatever they can get for the house, you are not liable for the rest. But there is a big caveat with that. The difference is reported to the IRS as income, which you are taxed on.

So after losing everything, I will have a tax bill for $200k in income. That's gonna be a big chunk of money. And there is no avoiding paying those guys. So let's say they set up a payment program for me for the sake of argument. What are those payments going to be? Maybe a grand a month, that I won't have to put towards expenses. That's just a guess, but it's probably pretty close for a 5 year repayment plan, though I guess it could actually be more.

Yes, the bank will have lost money, but so did I. I didn't make $200k!

 

[BurntRubber]

I haven't payed much attention to this whole housing deal, but here is my input on living a sound financial life.
1. Your house should be less than 4X your annual income, you should also put down 20% and take a straight 30 yr mortgage.
2. 6 months of living expenses in an emergency fund.
3. How ever long you finance your car, keep it 2x as long. example, 4 yr loan = keep the car 8 yrs.
4. Max out a retirement plan.
5. Pay cash for food, dining, coffee. My wife and I take $1000 out of our checking acct at the beginning of the month. $250 for dining out, $600 for groceries, $20 a week each for spending.

 

[SrtBrad]

I haven't payed much attention to this whole housing deal, but here is my input on living a sound financial life.
1. Your house should be less than 4X your annual income, you should also put down 20% and take a straight 30 yr mortgage.
2. 6 months of living expenses in an emergency fund.
3. How ever long you finance your car, keep it 2x as long. example, 4 yr loan = keep the car 8 yrs.
4. Max out a retirement plan.
5. Pay cash for food, dining, coffee. My wife and I take $1000 out of our checking acct at the beginning of the month. $250 for dining out, $600 for groceries, $20 a week each for spending.

Very good advise.:rock:

 

[Gaboon]

I don't mean to offend anyone but I have to ask. If things are so bad for some here why on earth are you keeping your trucks? Again there is no offense intended here and if you don't answer no biggie. I would just think if the struggle came down to it the truck would be the first thing to go.

 

[OCBob]

Well, my truck has been gone for a while. My harley is my transportation.

 

[Black1]

You know, there is a way the feds could help me out in my situation. That would be to forgive tax on the "income" when my house is finally sold by the bank.

Let me explain this a little more. Because of the huge drop in prices when my house is sold it will probably be around 200k or more less than what I owe on it. In Cali, when the banks foreclose they are typically stuck with whatever they can get for the house, you are not liable for the rest. But there is a big caveat with that. The difference is reported to the IRS as income, which you are taxed on.

So after losing everything, I will have a tax bill for $200k in income. That's gonna be a big chunk of money. And there is no avoiding paying those guys. So let's say they set up a payment program for me for the sake of argument. What are those payments going to be? Maybe a grand a month, that I won't have to put towards expenses. That's just a guess, but it's probably pretty close for a 5 year repayment plan, though I guess it could actually be more.

Yes, the bank will have lost money, but so did I. I didn't make $200k!

Just another reason to NOT FORECLOSE....

 

[Prof]

Back at ya all in a couple of hours, going to the foothills nearby to cut a couple of cords o woods to sell, damn i hate the rain.

I'm outta here! I hear a chain saw!

Denise did you tell him?

 

[Wifey]

Just another reason to NOT FORECLOSE....

So the alternative would be what? Walk away from the house and get judgments instead???:dontknow: Ruining any chance of ever having credit again? :dontknow:

I'm sure most of you are aware that part of gettin a job these days, in addition to background and drug testing is a credit check

Also, to rent a house you normally need a credit check and in some places you also need a credit check to obtain a homeowner's insurance policy ...... just something to think about.

OCBob has hit the scenario right on the head. It is as if he is walking in my shoes.... BINGO, not bad for a biker scum.

We can finish selling off the rest of EVERYTHING we own (including the dishes we eat off of) and STILL not bring in enough money at the salary most any job pays even a "burger flipping" job as some have made reference to pay the basic mortgage payment - not accounting for the rest of the living expenses Bob mentioned.

Even if we (or others in our situation) sell the house, the rent elsewhere would be most likely be comparable to the mortgage payment and we/they would not have the opportunity to use any equity when the market does come back.

The expense involved in relocating to another state and the ramifications of being a stranger in a new town have to be astronomical. Being older doesn't help things either. Trust me, we are not above hard work of any kind to make this work for our family, just trying to figure something out to be able to keep the investment that took so many years to acquire and ride out the storm until the market comes back ...... It also makes it harder when you are limited to one family member who is physically able to hold a job

It is looking more and more like the answer is a day job and a night job. That is if you can get one that will work you over 20 hours per week. Most employers are also cutting their costs by hiring part time help and even outsourcing services via the internet and the telephone. Has anyone called Dell lately

Off my soap box, I'm sure there are many answers, it is just finding the one that is the most suiting. Anyone want to donate for a well - we can move to our 10 acres (it is similar to the property SRTBrad has) - very rural - but not quite as far out as his.... only about 5 miles from pavement and does have water rights, but the water has to get from the ground to the tap somehow )

 

[Wifey]

Wow, who let Sybil out :dontknow:

 

[Wifey]

I'm outta here! I hear a chain saw!

Denise did you tell him?

You are safe for now, he is after big wood right now. There is very little cordage in stump cutting :rock:

LOL!!!! Love ya Roy :rock: :rock: :elefant:

 

[OCBob]

Just another reason to NOT FORECLOSE....

I'm not aware of any other options at this point.

 

[Annu Kumar]

You know, there is a way the feds could help me out in my situation. That would be to forgive tax on the "income" when my house is finally sold by the bank.

Let me explain this a little more. Because of the huge drop in prices when my house is sold it will probably be around 200k or more less than what I owe on it. In Cali, when the banks foreclose they are typically stuck with whatever they can get for the house, you are not liable for the rest. But there is a big caveat with that. The difference is reported to the IRS as income, which you are taxed on.

So after losing everything, I will have a tax bill for $200k in income. That's gonna be a big chunk of money. And there is no avoiding paying those guys. So let's say they set up a payment program for me for the sake of argument. What are those payments going to be? Maybe a grand a month, that I won't have to put towards expenses. That's just a guess, but it's probably pretty close for a 5 year repayment plan, though I guess it could actually be more.

Yes, the bank will have lost money, but so did I. I didn't make $200k!

Hey Qc Bob I think Bush Also Passed the law saying that If its your Primary home The "Cancelation Of Indebtness" Is Forgiven. But Check with your CPA Or accountant to make sure. Its not fair first you cant make payments and than you get taxed on it:dontknow:

 

[ChrisAZ]

Yeah, it's not fair. What's not fair is the people who didn't make bad choices get nothing but to be drug down. It's protectionism for dummies.

 

[Annu Kumar]

Yeah, it's not fair. What's not fair is the people who didn't make bad choices get nothing but to be drug down. It's protectionism for dummies.

Chris Brother I got talked into it buying these Sham Real estate agent and company. Look them The Owner of the Company that sold me these loans is Being Indicted and will be facing Prison time. One of the houses I dont even own the Real Estate Agent held title And I didn't even know about it
The Owner of the Company is RICK DRYER. THE MOST SKILLED CON ARTIST

 

[Prof]

There are only two kinds of people that get taken by con artists:

Greedy and stupid.

Annu you need a financial adviser. Your comments have been really scary. I fear that you are not capable of managing your own funds...Hire Wifey to do it for you.

 

[Annu Kumar]

There are only two kinds of people that get taken by con artists:

Greedy and stupid.

Annu you need a financial adviser. Your comments have been really scary. I fear that you are not capable of managing your own funds...Hire Wifey to do it for you.

Prof you act like you never made mistakes before and never got ripped off by someone. your comments sound like YOUR THE MAN Your 60 something and you never made a mistake in life:dontknow:

 

[Prof]

Made a few...most were huge...usually errors of omission not commission. There is a difference...kind of like the difference between avoidance and evasion.

Your comments often say much more than you realize...you are always communicating and once you hit the send key your words are etched in a virtual marble tablet.

I just think you need to think much more carefully before you transmit.

 

[Annu Kumar]

Made a few...most were huge...usually errors of omission not commission. There is a difference...kind of like the difference between avoidance and evasion.

Your comments often say much more than you realize...you are always communicating and once you hit the send key your words are etched in a virtual marble tablet.

I just think you need to think much more carefully before you transmit.

Yes Captain ROY:rock: Naw But This is Dew or die for me. But I learn everything the hard way you know:dontknow: But I'm gonna Come back Stronger and richer:dontknow:

 

[Prof]

You sound like me 45 years ago.

 

[includemeout]

There are only two kinds of people that get taken by con artists:

Greedy and stupid.

Annu you need a financial adviser. Your comments have been really scary. I fear that you are not capable of managing your own funds...Hire Wifey to do it for you.

Ahhhhhh Yessss, in the words of the famous and immortal W.C. Fields .....
Ya can't cheat an honest man

And Mr. Barnum said there's a sucker born every minute ..........

Words to live by