It is common for you to have any debt forgiveness counted as taxable income, so that is what the W-9 is for. If you have tax losses for that year, though, you may be able to offset that... talk to your tax advisor about this. If you don't usually use one, it might be worth a few hundred bucks to use one this year, as this is kind of a special case, and may not be covered in the common "tax software" that is out there! Good advice can save you thousands, and you can't count on the IRS to tell you what you need to know!
As for your credit, the Deed in Lieu will show up as a "debt settled for less" than full amount owed... and there are worse things, so I wouldn't be too worried about that. I've heard that you can get a new loan within about 3 years of a bankruptcy, less if you can show a genuine hardship that caused it, like a medical problem, job loss, divorce, etc. The good news is that you can start rebuilding your credit immediately once the DIL goes through, so work with a good credit repair agency, or just do the things you need to do yourself. I've heard there is a "Credit Repair for Dummies" book out there that will walk you through it... one idea is to start a savings account at a local bank, put a few thousand into it, and then ask the bank for a "secured" credit card. Start using it for small expenses, like gasoline and groceries, and pay it off every month. After making regular payments (on time!) for six months, ask for a credit line increase, and just keep doing that. NEVER use more than about 1/3 to 1/5 of your credit limit, that will build your credit score the fastest.
Anyway, good luck with getting yourself re-established... bankruptcy and foreclosure are not the end, so don't get discouraged, it's supposed to be a new start, so stay positive, and work toward the day when you'll be able to buy another home! If I can help, give me a call!
After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure.
There is only a six month waiting period. Good to see lending options coming back.
Best of Luck!
Definitely consult your attorney because if you sign their paperwork, you may be re-affirming the original debt. There is also legal counsel available in every community that charges you according to your income or pro bono if you qualify. Wishing you the best!
Mandy Lewis and Jennifer Peterson
The w-9 for debt forgiveness is standard and will be reported as income. However, check with your accountant. As part of the Mortgage relief act, there should be no tax consequences for the debt "income". It's a technicality.
What is more important is that Selene Finance agree to call the debt forgiven completely with NO ability to come back after you for the deficiency at a later date. Again, this should be part of the Oregon statute, but I'm not an attorney and can't give you legal advice.
As for "broom swept" condition, they mean they want the house clean, even if there are repairs that are required. They want no trash left, and they don't want all appliances removed, etc. I would double check that clause again - but if they have mountains of trash, furniture etc to remove, that will cost them, and I think that's what they are trying to avoid.
I hope this helps. There's a lot going on here - so I would double check to make sure you understand all their terms completely.