To foreclose or not to foreclose?


Posted by Ames on June 18, 2008 at 21:22:05:

I'm in a dilemma. I own a home with my brother in Merced. It's my primary residence, but my brother and I live in Sacramento to work. It's about 1 hour and 45 mins away. My parents are living in the home, and we go home for the weekends. They do help us with the mortgage payments also but the reason why we've been able to make the payments is that I have another brother who was helping us pay for the mortgage in Merced and the rent in Sacramento. This brother does not have a job now, so we're paying his part. I'm at the point where I just want to let it go because we're using most of our income to pay for the rent and mortgage. We bought the house for $332K, and now it's worth only around $157K. My brother (who's on the loan with me) doesn't really want to foreclose because he doesnt want bad credit and he's scared that the bank might 1099 us at the end of the year. I've been reading up, and I read somewhere that the government pass The Bill H.R. 3648 which relieves the homeowner from that tax liability for the owner-occupied foreclosed property. So, this means that if we foreclosed, we wouldnt have we get the 1099 at the end of the year right? I don't know what to do. Any advice? Help?


Follow Ups:

Current Discussion

2008 Archives

2007 Archives

Earlier Archives