"Should You Walk Away" - foreclosure advice website

[Bill]

Kind of interesting - the "walk away" phenomenon.

http://www.youwalkaway.com/



If you are facing or considering foreclosure, you're not alone.

Are you stressed out about your mortgage payments?
Do you have little or no equity in your home?
Have you had trouble trying to sell your house?
Is your home sinking under the waves of the real estate crash?
What if you could live payment free for up to 8 months or more and walk away without owing a penny?

[Smurf-Herder]

People should check into this:

http://www.housebuyernetwork.com/index.asp

[Independent Harry]

That's nice, except what most people don't know is that if they go into foreclosure or do a short sale, they would be subject to a 1099 on any 2nd mortgages they have by the bank. That could mean thousands of more dollars in new tax liability at the end of the year.

Now the new bill in congress stops that from happening, but only if you haven't refinanced with a cash out 2nd. If its purchase money you are exempt, but if its cash out you aren't.

If you;re going into foreclosure and you have a 2nd that is going to subject you to a 1099, then your best bet is to file for bankruptcy. That way they can only come after you for a pool of money determined by your income, you escape the IRS liability and trust me, bad credit is much better than having the IRS on your ass. They will simply keep draining your personal checking and savings account until they have their money, leaving you with nothing every month...