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dardontrade · Joined: 16 Jan 2010 Posts: 1 1.40 Dollars($)

Me, and my wife are fully disabled. We have a house in Long Island, New York with a mortgage. Before we went on chaptor 13 four years ego, because of excess medical bills, my wife cosigned on a loan for a Florida house for her son. Later when they was going to refinance, they find out that my wife is not the cosigner, but the mortgage is solely on her name. Now the Florida townhouse is on shortsale, (not much action) and son moved back to New York to rent. The Florida property has about 200K mortgage on it, but can't even sell for 60k. Any way that I wont have a huge lien on my New York house before it's all ends?

adonis · Posted: Sun Jan 17, 2010 11:21 pm Post subject:

Welcome dardontrade,

I would suggest your wife to speak to the lender and apply for a deed in lieu of foreclosure. If the lender agrees to it, then your wife won't be responsible for the deficient amount resulting from the sale of the property. Thus, the lender will not place a lien on your property situated in New York.

Guest

Thank you for your answer Adonis.
"Dil" sounds like the way to try to go, but I still have one major worry.
Assuming the lender grants the "dil", but the "Mortgage Forgiveness Tax Relief Act " has ended in 2009, what kind of taxes would we be responsible if the mortgage was 200K, and the bank sells on short sale for 60K.
Would I have to pay taxes on 140K what I never even had?

jameshogg · Posted: Mon Jan 18, 2010 11:01 pm Post subject:

Hi Guest,

As far as I know, the Mortgage Forgiveness Tax Relief Act has been extended till 2012. Thus, if you go for a deed in lieu, the taxes on the balance amount will be forgiven.

Thanks

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Lien, or not?