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Originally Posted by Jim Richards
How does the IRS treat this jingle mail? It seems that a loss eaten by the bank when the homeowner mails in his keys is a gain for the defaulter.
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Depends on the state. In some states, you must go to court and obtain a judgment against the borrower for the deficiency. Besides, banks aren't hungry for write-offs these days.
There is some chance the OP may be slapped with a deficiency if the lender finds OP actually has assets.
Quote:
Originally Posted by Dueller
Paul, while I certainly understand your point (and share your morality sentiments), would you not agree that some of our most "successful" entrepreneurs routinely walk away from sour business deals rather than honoring their original commitment? Many of these folks use bankruptcy and default as nothing more than a business tool. Trump comes to mind.
That being said, more than one of successful business people I personally know have gone broke, lost fortunes but always seem to land on their feet and come back even wealthier.
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Concur. When a company, bank, business culls the herd, it's just doing business. A company lays off 3000 to trim expenses, stock goes up. Business goes bankrupt and owners walk away...it's just business.
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Originally Posted by jyl
I remember a thread on PPOT where too many people had no idea that California had even experienced a RE bust in the 1990s.
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The Nile, river in Egypt. Short memories are sown with greed. I'm not lily white, but I ain't stupid, either. Tech bubble 2000 absolutely kicked my ass. Never again, friend.