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tehlorax said:   
Ma171aC said:   
MilleniumBuc said:   
MilleniumBuc said:   
walking said:   Still struggling to find a place to rent. Combine the credit/foreclosure issue with us having a dog and a cat in a very competitive rental market, and I'm getting a little concerned. Offering to put down an extra month's deposit hasn't swayed anyone.

I guess its more for others now than for you, but in similar but not quite situation starting in January 2011.

We started looking for 2-3 year rental contracts. We have gone through mostly of what you have gone, but its a short sale that is supposed to close this month (7 months of paperwork). Have had several phone calls with creditors wanting to know what is going on (AMEX and Discover), and both cut the lines from about 20k to 2k, and the others have been chasing balances to cut CL. At this point, after all the credit pulls for the short sale, 1st and 2nd loans shown as written off, our credit went from the high 700's to the 600-630 range. We figured that would be happening and that is why we did the 2-3 year lease and purchased a new car before missing the 1st payment.

You might have to get rid of one or both pets at this time, or stay at the same place if possible. Or if current LL has other properties and will accept you moving to one of them if you do not want to stay there.

BTW, thanks for writing this detailed version of what is happening over this year since you left the house. Main thing to worry is for them to finish the foreclosure by the end of 2012, and not for them to push it beyond that so that their loss is your tax gain.

 
Replying to a post of mine from 06/2012 to add a different perspective to the walking away post, as I also walked away and moved to a different city.  My reasons were mainly spouse unemployment for 2+ years before that, where we kept paying on the house, wiped our savings, while not qualifying for any of the HAMP/HARP/etc at the time due to the difference being so great (100k value vs. 240k paid and 225k owed) and the neighborhood became so crime infested that I owed to my new born not to be raised there.

It took another year and 4 months with 4 different short sale transactions and 3 banks (First and Heloc, and then first transfered) .  It took many fights with the lenders who kept switching letters on me (because they usually only have a 30 day accepptance period) on the agreement to forgive the loan vs retain their rights.  Many fights with the Heloc about what they wanted to be paid to let it go (from 10% to 30% - ended up at 17%).  Even at the end of the short sale process, after agreeing to not go after the difference in the loan, they submitted to the comptroller a satisfaction of mortgage that includes the wording that they retain the right to go after the balance, even though that was not the last form I signed and agreed to.

In the end, by going the walking away short sale route, I ended up not having the forgiven amount (120k) follow me around, was able to maintain about 68k in credit lines (from 160k) and got a 1098 written for 2013 that included all the accumulated interest from 02/11 to 10/13.  That allowed me to use the itemized deduction and realize an extra 7k in tax refunds.   Plus not worrying about calls or judgements appearing out of nowhere.  Credit went from the high 700's to the 600-630 range, and back in the 660-670 range.  Now its just a matter of time.

OP, any 1098, 1099 issued by the lender?

  Curious how you avoided any taxes on the forgiven amount or why you wouldn't have got a 1099 or 1098 to atleast file.   Congrats on getting out of the situation though and thanks for following up on the post.

  Mortgage Debt Relief Act?

  It did for me.  I was just wondering if everything got filed correctly for OP (1098 and 1099-C were received by now), and if they are still persuing him for the deficiency or not.

rated:
MilleniumBuc said:   
tehlorax said:   
Ma171aC said:   
MilleniumBuc said:   
MilleniumBuc said:   
walking said:   Still struggling to find a place to rent. Combine the credit/foreclosure issue with us having a dog and a cat in a very competitive rental market, and I'm getting a little concerned. Offering to put down an extra month's deposit hasn't swayed anyone.

I guess its more for others now than for you, but in similar but not quite situation starting in January 2011.

We started looking for 2-3 year rental contracts. We have gone through mostly of what you have gone, but its a short sale that is supposed to close this month (7 months of paperwork). Have had several phone calls with creditors wanting to know what is going on (AMEX and Discover), and both cut the lines from about 20k to 2k, and the others have been chasing balances to cut CL. At this point, after all the credit pulls for the short sale, 1st and 2nd loans shown as written off, our credit went from the high 700's to the 600-630 range. We figured that would be happening and that is why we did the 2-3 year lease and purchased a new car before missing the 1st payment.

You might have to get rid of one or both pets at this time, or stay at the same place if possible. Or if current LL has other properties and will accept you moving to one of them if you do not want to stay there.

BTW, thanks for writing this detailed version of what is happening over this year since you left the house. Main thing to worry is for them to finish the foreclosure by the end of 2012, and not for them to push it beyond that so that their loss is your tax gain.

 
Replying to a post of mine from 06/2012 to add a different perspective to the walking away post, as I also walked away and moved to a different city.  My reasons were mainly spouse unemployment for 2+ years before that, where we kept paying on the house, wiped our savings, while not qualifying for any of the HAMP/HARP/etc at the time due to the difference being so great (100k value vs. 240k paid and 225k owed) and the neighborhood became so crime infested that I owed to my new born not to be raised there.

It took another year and 4 months with 4 different short sale transactions and 3 banks (First and Heloc, and then first transfered) .  It took many fights with the lenders who kept switching letters on me (because they usually only have a 30 day accepptance period) on the agreement to forgive the loan vs retain their rights.  Many fights with the Heloc about what they wanted to be paid to let it go (from 10% to 30% - ended up at 17%).  Even at the end of the short sale process, after agreeing to not go after the difference in the loan, they submitted to the comptroller a satisfaction of mortgage that includes the wording that they retain the right to go after the balance, even though that was not the last form I signed and agreed to.

In the end, by going the walking away short sale route, I ended up not having the forgiven amount (120k) follow me around, was able to maintain about 68k in credit lines (from 160k) and got a 1098 written for 2013 that included all the accumulated interest from 02/11 to 10/13.  That allowed me to use the itemized deduction and realize an extra 7k in tax refunds.   Plus not worrying about calls or judgements appearing out of nowhere.  Credit went from the high 700's to the 600-630 range, and back in the 660-670 range.  Now its just a matter of time.

OP, any 1098, 1099 issued by the lender?

  Curious how you avoided any taxes on the forgiven amount or why you wouldn't have got a 1099 or 1098 to atleast file.   Congrats on getting out of the situation though and thanks for following up on the post.

  Mortgage Debt Relief Act?

  It did for me.  I was just wondering if everything got filed correctly for OP (1098 and 1099-C were received by now), and if they are still persuing him for the deficiency or not.

  
Pretty sure they sent me that stuff, my mind is a bit of a blur thinking about the current tax year, but I sent all the stuff to my accountant last year.  Would need to go back and find my return.  I'll see when I can get around to it, but I'm 99% sure they sent me that stuff.

As for pursuing me for the deficiency, they have up to 7 years to do that here in VA I believe, but I haven't had any contact from the bank whatsoever.

rated:
OP, anything going on? Any developments? Have you been contacted by 'x'?

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