Comments on: Mortgage Forgiveness? Not So Fast

By: Katie Homes

Katie Homes — Sat, 12 Sep 2009 11:27:05 +0000

Thanks for the info its good to share. Can I ask you a rhetorical question about yourself? do you mind?

By: JoAnn

JoAnn — Fri, 04 Sep 2009 17:33:11 +0000

I just went through a mortgage remodification with Bank of America because I was in forclosure. They put the money I owed in the back end of my mortgage. The problem now is that I Now owe more than my house is worth and my payment have gone up. I could hardly pay the orginal amount before and now it’s up almost $200 more. I took it only because I do Not want to lose my house, but I am going to be in trouble again if I can’t figure something out. Can You help?

By: Mike

Mike — Wed, 01 Apr 2009 04:44:34 +0000

I wondered why my deadbeat brother in law was allowing his primary residence to be foreclosed upon because he no longer feels like working 40 hour weeks. I’ve been trying to explain to him that the $100k he is upside down would count as taxable income. Guess I am wrong after all. My guess is he is not alone and many who could pay their mortgages are walking because it is easier to walk - making the situation worse for taxpayers and lowering their neighbors property values. I hope he is in the minority and most cannot pay their mortgages rather than finding their debt repayment obligations inconvenient.

By: glenn

glenn — Mon, 30 Jun 2008 18:53:37 +0000

Are there answers to this question. This is my primary home, I rent another for work related reasons in another state. I do not rent it out nor would I. I am however looking at a house that was worth $320K, I have $250 financed and it is now worth maybe $140K. House is in Cape Coral, FL

By: glenn

glenn — Mon, 30 Jun 2008 18:50:59 +0000

I am wondering if the Lender would considering “forgiving” the downside of the loan to the original owner at a slight premium to market value so he can keep his home? Or is this what the bill states?

By: Dennis Haber

Dennis Haber — Mon, 30 Jun 2008 12:19:10 +0000

Inherent in the reverse mortgage rules is a special concept of no personal liability. Whenever the “upside down” event occurs (the amount due is greater than the value of the home at time of sale), under the FHA requirements, the
lender will look to the government for the difference. Under the proprietary program, the lender will take the loss. The HECM (FHA) program requires mortgage insurance to cover this eventuality. The proprietary program today are offering lower LTVs, to prevent the crossover point from being reached.

By: Paul Gellert

Paul Gellert — Sun, 29 Jun 2008 14:35:39 +0000

I am writing an article on Reverse Mortgages. The question is, in the event the house is worth less than the mortgage at the time of death or sale, is the forgiven amount taxable under the reverse mortgage rules? If it is, am I correct that the Mortgage Debt Forgivness Act would cover it?
Thanks.