by jujubea207 » Mon Jun 21, 2010 04:39 pm
I will probably have to let the bank foreclose. I carry PMI but I don't understand the point of paying insurance and then having to pay them again if I default. Isn't that double dipping on their part? But if the bank sells the property in the future for what I oweor more, then what should I expect. Will the PMI company come after me for the difference in what my home eventually seels for and what they paid the bank?
Posted: Mon Jun 21, 2010 08:18 pm Post Subject:
I carry PMI but I don't understand the point of paying insurance and then having to pay them again if I default. Isn't that double dipping on their part?
No, the PMI carrier pays the bank, then the PMI carrier comes back to you for repayment...they are just guaranteeing the note will be paid, NOT that you won't have to live up to your obligation to pay your mortgage...But if the bank sells the property in the future for what I oweor more, then what should I expect.
If the bank sells the property for more than you owe then you would get that balance, less any fees..Will the PMI company come after me for the difference in what my home eventually seels for and what they paid the bank?
yes...lets say, the house sells for 100k, you owe 120k, the PMI carrier would come to you for 20k..Have you tried to sell the house? Have you talked to your mortgage company about the possiblity of a short sale?
Posted: Wed Jul 21, 2010 06:53 pm Post Subject: Not true
If you vacate the property before the bank sells the house, you will be required to sign a document stating you no longer have any interest in the house INCLUDING any income the bank makes on the sale of your home.
In addition, you will have to pay taxes on any amount the bank declares was lost in the sale of your home. That said, you can deduct that loss from your taxes.
Foreclosure stinks. The only people who win are the banks :(
Posted: Fri Sep 17, 2010 10:18 am Post Subject:
In addition, you will have to pay taxes on any amount the bank declares was lost in the sale of your home
Hey anonymous2010, I guess we can at least ask for an explanation of such an amount that may have been expended towards the sale of our home. Or is that the bank may charge any amount irrespective of their actual expenses?
Posted: Fri Sep 17, 2010 03:24 pm Post Subject:
yes...lets say, the house sells for 100k, you owe 120k, the PMI carrier would come to you for 20k..
I've never heard of this. PMI is insurance -- an aleatory contract . . . unequal giving and receiving. Somebody usually wins and somebody usually loses (claims paid vs premiums paid). But since I've never had PMI, and I've never seen a PMI contract, who's to say this could not be true?
In addition, you will have to pay taxes on any amount the bank declares was lost in the sale of your home. That said, you can deduct that loss from your taxes.
Not true! Although you might have a taxable gain when selling a home, the Internal Revenue Code makes no provision for deducting a capital loss in the sale of one's residence. You get a tax bill for selling high, and you get a tax bill for bailing out and leaving the lender with an unrecovered loss. If the lender "forgives" the debt, the IRC considers that the same as imputed income, and it is taxable, even though it represents money you never had in hand.
You get a Form 1099 Misc from the lender, and the IRS gets a copy. They may match their copy with your tax return to see if you've been a good taxpayer and reported the income and paid the tax due. If you didn't, they'll let you know and charge you for the inconvenience you've caused some poor Civil Service bureaucrat.
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