Any Loan Modification Experts?

number335 · 06-16-2010, 10:04 PM

I am upside down on a rental property mortgage and CHASE has offered to reduce/modify my current loan amount from $182,325.94 to $115,500.00 ($66,825.94 reduction). I originally put down $50,000.00 and have paid approx $12,000.00 in principal towards the loan.

I do not occupy the home, so I don't think I qualify for the loan modification relief act that would relieve me from any tax liability for the $66k reduction.

If I agree to this loan modification, will I be screwed with having to pay taxes on the $66k?

ABQ325i · 06-16-2010, 11:23 PM

Speak with a real estate lawyer before signing anything.

Freakazoid · 06-17-2010, 11:28 AM

Quote:

Originally Posted by ABQ325i

Speak with a real estate lawyer before signing anything.

+1 very strong chance of having to pay taxes...and watch for the fine print

MisterSkiMask · 06-17-2010, 12:16 PM

Quote:

Originally Posted by Freakazoid

+1 very strong chance of having to pay taxes...and watch for the fine print

Yes, I believe that $66,xxx would/could be treated as income by the IRS...then you are dealing with them!

Talk to someone who knows!

double_j · 06-17-2010, 01:39 PM

Damn - you lost 50% of the value? I know things were way overpriced in CA, but I had no idea it was that bad. All of a sudden, NJ seems OK (My home value only dropped by about 20% or so).

I agree - speak with a lawyer and read the fine print. That said, if you can afford the one-time tax hit & fees, it'll be hard to justify not taking that kind of deal.

TunedM2C · 06-17-2010, 02:07 PM

Yes, you'll have to pay the tax man.

stimpy · 06-17-2010, 02:15 PM

Nothing is free brother.

06-16-2010, 10:04 PM	#1
number335 Second Lieutenant 20 Rep 254 Posts Drives: E92 Coupe Join Date: Mar 2008 Location: Orange County, CA iTrader: (0)	Any Loan Modification Experts? I am upside down on a rental property mortgage and CHASE has offered to reduce/modify my current loan amount from $182,325.94 to $115,500.00 ($66,825.94 reduction). I originally put down $50,000.00 and have paid approx $12,000.00 in principal towards the loan. I do not occupy the home, so I don't think I qualify for the loan modification relief act that would relieve me from any tax liability for the $66k reduction. If I agree to this loan modification, will I be screwed with having to pay taxes on the $66k?
	Appreciate 0 Tweet Quote

06-16-2010, 11:23 PM	#2
ABQ325i Private First Class 16 Rep 158 Posts Drives: 08 E60 535i + 06 E90 330i Join Date: Apr 2010 Location: Albuquerque iTrader: (4) Garage List 2008 535i [0.00] 2006 330i [0.00]	Speak with a real estate lawyer before signing anything.
	Appreciate 0 Quote

06-17-2010, 01:39 PM	#5
double_j First Lieutenant 86 Rep 331 Posts Drives: 2008 JB/B E90 M3 Join Date: Nov 2009 Location: Northeast USA iTrader: (0)	Damn - you lost 50% of the value? I know things were way overpriced in CA, but I had no idea it was that bad. All of a sudden, NJ seems OK (My home value only dropped by about 20% or so). I agree - speak with a lawyer and read the fine print. That said, if you can afford the one-time tax hit & fees, it'll be hard to justify not taking that kind of deal.
	Appreciate 0 Quote

06-17-2010, 02:07 PM	#6
TunedM2C Brigadier General 840 Rep 4,190 Posts Drives: 2016 LBB M2 Join Date: Jan 2008 Location: Earth iTrader: (2)	Yes, you'll have to pay the tax man.
	Appreciate 0 Quote

06-17-2010, 02:15 PM	#7
stimpy Colonel 180 Rep 2,210 Posts Drives: E92 335i Join Date: Feb 2008 Location: Phoenix AZ iTrader: (7)	Nothing is free brother.
	Appreciate 0 Quote