Think twice before rolling credit card debt into mortgage refinancing

catherine at 06:53 2009-08-20 said:

what't the problem, YOU ROLL YOUR 50,000 CARD DEBT INTO YOUR MORTGAGE - AND THEN YOU WALK AWAY FROM THE MORTGAGE and have 50,000 credit to live on for awhile...............

just like two years ago when people thought people would suck it up and continue to pay on mortgages that were 40% higher than the value of their homes. YEAH RIGHT..............and now we see that milleage is rising while values of homes are dropping SO THE GOVERNMENT CAN STILL TAKE THEIR PIECE OF FLESH.................PEOPLE GET IT, SCREW THE GOVERNMENT...........

and someone correct me if I am wrong but doesn't the law in Congress run out in December that IF YOU FORECLOSE ON YOUR HOME BEFORE THEN - THE SHORTAGE BETWEEN WHAT YOU OWE ON THE PROPERTY AND WHAT THE BANK CAN SELL IT FOR CAN'T BE STUCK ON THE BORROWER AS INCOME...................

when that law runs out if you owe 400,000 and you give your home back and the bank only sells it for 200,000 - THEN THE IRS CAN COME AFTER YOU FOR TAXES ON THAT 200,000..............THEY say that that it is INCOME....................it either ran out in January of 2009 or December.............don't know when it ran out. but if it is December we are going to see a double run on foreclosures............ Permalink

mahalo guy at 08:18 2009-08-20 said:

I would also like to know if this deficiency law runs out in December. And, though it is federal, does it trump every state's law. Permalink

catherine at 11:03 2009-08-20 said:

I would also like to know if this deficiency law runs out in December. And, though it is federal, does it trump every state's law.

it used to trump the state. They extended the law for 3 years this time I think and they did the same thing back in 87 or so when John Glenn (OH) was trying to force people to count it as income if a debt was forgiven and he was overruled.............. Permalink