Today's New York Times article talks about the double wammy of loosing your home and then being taxed on loan balance you did not repay.
The article is about foreclosure but the same principal applies to Short Sales and Deed inleu of Forclosure. If you borrow money and don't pay it all back, the difference is income to you and you owe tax on that income.
New York Times article gets into more of the details of what tax do you truly owe and how it should be computed but the bottom line is you owe tax.
Here is the Link:
Foreclosure and Taxes
Showing posts with label option arm. Show all posts
Showing posts with label option arm. Show all posts
Saturday, August 25, 2007
Friday, August 24, 2007
Back to Blogging
Some of you may have noticed a two week gap in this blog. I have been looking for work and waiting for conditions to be met so I can start originating mortgages at a new company.
In the past three weeks 136 national mortgage companies, including my former employer American Home Mortgage, have gone out of business. Several others are hurting and may not make it. It was reported yesterday that over 30,000 people in the mortgage industry were out of work. Well I am one of them.
Although I will be employed again next week, the bigger picture is the impact on the US economy. Will we have a recession? One piece of this mess is the way mortgages were packaged for sale in the secondary market. Our foreign investors thought they were buying one thing and got another. Like buying steak and opening the package to find hamburger. Not the same value. Here is the link to Fidelity Investments newsletter that explains much of the mess.
Fidelity Newsletter
In the past three weeks 136 national mortgage companies, including my former employer American Home Mortgage, have gone out of business. Several others are hurting and may not make it. It was reported yesterday that over 30,000 people in the mortgage industry were out of work. Well I am one of them.
Although I will be employed again next week, the bigger picture is the impact on the US economy. Will we have a recession? One piece of this mess is the way mortgages were packaged for sale in the secondary market. Our foreign investors thought they were buying one thing and got another. Like buying steak and opening the package to find hamburger. Not the same value. Here is the link to Fidelity Investments newsletter that explains much of the mess.
Fidelity Newsletter
Monday, July 30, 2007
Neg Am Loans 1
Negative Amortiztion. Words that scare many people. Reverse Mortgage. Words that bring great comfort to many. Ironic that a Reverse Mortgage creates the biggest Negative Amortization Mortgage!
As with all loans and mortgages, the right loan for you is one that meets your financial needs and goals and one you understand. Negative Amortization mortgages that help moderate monthly expenses while helping the borrower meet other financial goals are wonderful. Negative Amortiztion mortgages that put some one's home owership at risk are a traversity.
The number one question I would have is: What is your objective?
If you want to keep your payment low so you can invest the difference or make an income property give a positive cash flow a Negative Amortiztion loan is the way to go.
If you are trying to buy the home of your dreams that is out of reach any other way, you are looking for trouble.
More on Negative Amortization loans later.
MMM
As with all loans and mortgages, the right loan for you is one that meets your financial needs and goals and one you understand. Negative Amortization mortgages that help moderate monthly expenses while helping the borrower meet other financial goals are wonderful. Negative Amortiztion mortgages that put some one's home owership at risk are a traversity.
The number one question I would have is: What is your objective?
If you want to keep your payment low so you can invest the difference or make an income property give a positive cash flow a Negative Amortiztion loan is the way to go.
If you are trying to buy the home of your dreams that is out of reach any other way, you are looking for trouble.
More on Negative Amortization loans later.
MMM
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