First let me tell you Your site is so helpful and informative. A great service.Thank You I hope you can give me an answer, there are so many different opinions about this, but I trust yours.
Live in NYS,went bankrubpt 2010,chap 7 discharge,no reafirm on mortgage. Heloc only 48000, no first. Have made all payments since. Things have changed, lost my job,house very underwater and very crime ridden area.
Bank said they would settle account for 10,000. First why would they accept so little? House value maybe 25,000. Makes be nervous.
Second would I have to pay tax on forgiven amount as it was already discharged? And would my credit now take another hit as a foreclosure if I just walked away?
I don’t live there, not renting, house is empty because of area, just an albatross. Want to get lein released so I could dump it quick if possible. Is trying to come up with cash payoff a good Idea, what about taxes and my credit? Thank You
Thank you for sending in your question.
Was the HELOC taken on after your bankruptcy? Is this something that was not included in the bankruptcy? I’m curious how else it might not have been discharged in the bankruptcy.
Did the bank ever take back the house or is it sitting there in your name?
If both loans were forgiven as part of your bankruptcy, then no tax would be due.
I think we can get you where you want to go but I need more clarity on the bankruptcy and the inclusion of the HELOC in the bankruptcy.
Please post your responses and follow-up messages to me on this in the comments section below.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
need to walk away from my old house in crime ridden area.
This is one place you can go to for the truth !! Steve is great. Steve what you should do is have a television show so more people can share your knowledge. Thanks from us all, for all the good you do.