[bhb]

How do you find out if the loan you have is in fact a recourse or non recourse loan? When we had to move for work. The bank did an equity loan to pay off our first mortgage with the secured debt on that loan being the first mortgage. The equity we got out of the first mortgage was used to put the down payment on the second home. The secured debt on the second home is the second home only. Our lawyer told us that the two were not tied together, but did not say anything about it being recourse or non recourse. What do I look for on my paperwork?

[877YouKeep]

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

This provision applies to debt forgiven in 2007, 2008 or 2009. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion doesn’t apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

this may be a non issue although not that this has been put into law mortgage companies will rather than 1099 filing a deficiency judgment and go after homeowners for the loss

we are helping homeowners To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. and if a sale need to happen refer the homeowner to qualified help.