Foreclosure in Los Angeles>Question Details

Confused, Home Owner in Los Angeles, CA

I want to walk away from my home. I have an underwater loan. I cannot work out a solution with my lender. Any suggestions?

Asked by Confused, Los Angeles, CA Tue Apr 12, 2011

I utilized a free negotiation service but was unable to obtain a restructure. It's been 1 year and they sugguest I resubmit paperwork to them
My lender offered a HAMP (home affordable modification program). This was a fixed rate for the first 5 years, then went up 1% for the next 3 years and levels off. I am near retirement and I need a fixed rate that I can afford.
Will there be any tax problems if I walk away?
I have never missed a payment.

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Answers

17
Consult with an attorney, she/he will better assist you.
1 vote Thank Flag Link Thu Apr 28, 2011
See my answer to your other question.

I can negotiate a short sale for you, even if you have never missed a payment! I forgot to mention in my other answer that there are lenders out there that will loan again immediately for a borrower who had to do a short sale but never missed a payment. There are rules to being able to buy again immediately, at the minimum you could purchase again in 1yr.


EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
Short Sale Expert
1 vote Thank Flag Link Wed Apr 13, 2011
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
Dear Friend,

If your home mortgage is a Jumbo Loan that is over $500,000 that is upside down, I can help. Message me and I'll show you how to drastically lower your mortgage, keep your property and not damage your credit! This is not a sort sale or loan modification. This is a "residential back-flip" and has been done commercially for quite awhile but now we are expanding a service that specializes in residential properties.
You must meet the following Criteria:

Owner is upside down but desires to keep property
Primary Residence only
Non-Conforming Loans (Jumbo Loans) only Starting at $500,000 up to $5,000,000
Owner not be in default and meets credit and income requirements

I hope this helps!!
Albert Marrujo Jr

Call me at: 1-559-731-6497
E-mail =: albert.marrujo@gmail.com
0 votes Thank Flag Link Mon Dec 5, 2011
If you are thinking of doing a short sale and are worried about your credit and owing taxes, know that the damage to your credit will be less with a short sale. Also, The Mortgage Forgiveness Debt Relief Act that was passed in 2007 will make it easier to get out of having to owe taxes. You should speak to your lawyer, realtor or bank to look into these for you.
0 votes Thank Flag Link Thu Apr 28, 2011
I am not a tax pro and strongly suggest you contact a tax professional or real estate attorney to answer your question. However, I have a few clients that were in your position and ran into the same issues with HAMP or their bank's in-house modification programs. All of them decided to short sell their homes as an alternative to walking away from their underwater mortgages. If you like to explore a short sale as an option, please do not hesitate to contact me or my associate Yulia at 800-835-1608. We specialize in short sales and we will be happy to work with your bank on your behalf.

Walter.
0 votes Thank Flag Link Sun Apr 24, 2011
I am not a tax pro and strongly suggest you contact a tax professional or real estate attorney to answer your question. However, I have a few clients that were in your position and ran into the same issues with HAMP or their bank's in-house modification programs. All of them decided to short sell their homes as an alternative to walking away from their underwater mortgages. If you like to explore a short sale as an option, please do not hesitate to contact me or my associate Yulia at 800-835-1608. We specialize in short sales and we will be happy to work with your bank on your behalf.

Walter.
0 votes Thank Flag Link Sun Apr 24, 2011
You say that you want to walk away from your home. Have you spoken to any REPUTABLE real estate investors? A knowledgeable investor might be able to negotiate to purchase your home from your lender, before foreclosure, thereby saving your credit rating (if you care). I'm posting a link to a Los Angeles real estate investor's website. I have worked with her on several projects and I have found her to be very ethical, knowledgeable and compassionate. It will cost you nothing to contact her, there is no obligation and who knows...you might find a better solution than walking away. BTW, she is not a real estate agent and she buys houses regardless of their condition, property tax status, or permit status. She can negotiate with you or with your lender directly to purchase your home outright. She pays cash. No funny business!
0 votes Thank Flag Link Sun Apr 24, 2011
Confused you need answers from professionals.
Tax consequences need to be addressed to your trusted tax adviser.
Also, talk with a real estate attorney. This is suggested all the time for good reason, they are on the forefront of what is happening now and what may come up in the future.
After you get information from those two you may have an idea which way you want to go;
1) Modifiy again
2) Short Sale
3) Deed in lieu of foreclosure
4) Foreclosure

Good luck to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Apr 22, 2011
You definitely need to speak with a real estate agent right away and possibly an attorney. If the loan modification was not approved as a hamp you do have several choices still, one would be to short sale the house. I would always recommend choosing this option rather than just walking away from the property, there is also deed in lieu of foreclosure, both options will affect you however the short sale would be the most favorable solution for you.

I have done tons of short sales, feel free to contact me anytime if you would like more information about doing a short sale for your home.

Have a great day,
Heather Paul, Realtor
Coldwell Banker Residential Brokerage
(310)586-0364 or (424)625-1037
0 votes Thank Flag Link Fri Apr 22, 2011
If you were offered HAMP, then your lender MUST offer you a HAFA short sale. The benefit of a HAFA short sale is that you are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You will also receive $3,000 in relocation assistance upon successful closing of your short sale!
In a short sale, the servicer allows you to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. or deed-in-lieu of foreclosure With a deed-in-lieu of foreclosure, you voluntarily transfer ownership of your property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances. Generally, if you make a good faith effort to sell your property but are not successful, a servicer may consider a deed-in-lieu of foreclosure.
You may be eligible to apply if you meet all of the following:
* You live in the home or have lived there in the last 12 months.
* You have a documented financial hardship.
* You have not purchased a new house within the last 12 months.
* Your first mortgage is less than $729,750.
* You obtained your mortgage on or before January 1, 2009.
* You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
If you wish to call me I can go over your situation. I am a CDPE (Certified Distressed Property Expert) and a CHS (Certified HAFA Specialest).
Best,
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
(C) 310-422-4288
http://www.thebremnergroup.com
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
FTC DISCLOSURE: Coldwell Banker Residential Brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
0 votes Thank Flag Link Wed Apr 13, 2011
In order to best protect yourself and any other assets you may have, before walking away do consider consulting with an attorney who specializes in real estate, he/she can best advise as it relates to your specific situation; most professionals do offer a free consultation and or contact your local Legal Aid Society, for a bono bono attorney, free,
0 votes Thank Flag Link Tue Apr 12, 2011
You need to request short sale packet from the lender .

NOTE: Short sale has less of impact on your credit scores than a foreclosure

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Apr 12, 2011
It is possible you could have problems if you walk away. You should seek advice from an attorney or an accountant before doing anything.

With a short sale, these issues can usually be worked out so you don't have a problem later. If you would like to discuss your situation in detail, please contact me.

Brett
(909) 868-1955
Brett@bkEstates.com
0 votes Thank Flag Link Tue Apr 12, 2011
Thank for reaching out for help. I know its hard. I recommend talking to a credit specialist before you do anything.
0 votes Thank Flag Link Tue Apr 12, 2011
Hello Confused,

Sorry to hear that your loan modification did not work out. I recommend that you speak with your licensed Accountant. They will be able to help you determine if your current loan is a Recourse or Non-Recourse loan. Determining which type of loan you have will determine any tax implications and liability to the Lender you will have. You can also consult a Licensed Attorney who speciaIizes in Real Estate Law to answer any legal questions you may have regarding any potential liability on your part. I do not recommend that you just walk away from your home. Speak with a Licensed Realtor who has experience in selling a home in your neighborhood using the short sale process. Your credit will not take as big a hit by selling the home as a short sale and you could be in a position 2 to 3 years after the sale on your current home to buy another home. If you walk away and the home is foreclosed you will have to wait 4 to 7 years (closer to 7 years) before you could be in a position to buy again. Good luck!

Matt
0 votes Thank Flag Link Tue Apr 12, 2011
Depending on the value of the property there may or may not be tax consequences. This is a question best answered by a tax professional.

In some instances, California allows for deficiency judgments. This means the lender can come after you for part or all of their loss on the property. But as California likes to make it complicated, this question needs to be answered by an attorney.

Have you discussed with your lender the option of doing a short sale where they would agree not to come after you for a deficiency? This is sometimes the best option in states where lenders are allowed deficiency judgments.

If you're unable to afford an attorney, contact your local legal aide office.
0 votes Thank Flag Link Tue Apr 12, 2011
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