Quote:
Originally Posted by masraum
...snip...
I'm wondering about tax rammifications of your principal reduction. Will that be looked upon as partial loan forgiveness which is taxed like income or capital gains, or because it's a balloon payment at the end, will it not be an issue until then?
Fortunately, I'm ok on my house, but congrats on the good work.
|
There is no forgiven amount, it's just deferred. No tax issue as far as I can see.
Look at as a lien on the property.
Congratulations on being right with your loan, many people aren't.
Quote:
Originally Posted by McLovin
What's the big deal about being "upside down" on your home loan? Isn't your monthly payment still the same?
If housing continued to skyrocket, would you have shared that upside with the bank? Do you think it would have been fair for them to demand you change the deal so they could get the upside?
What kind of constitutional patriot are you?!?
|
The payment is $1,200+ lower.
The terms of the contract were clear and they had a right to negotiate or not. Like any other contract.
My rights and theirs were not compromised. They had a secured loan, secured by property and a $200K down payment. My legal options under the terms of the contract were to pay the loan as specified by the contract or default. Default is a perfectly legal and moral option under the contract they wrote.
We came to a mutually beneficial agreement. If /when the property becomes more valuable the bank wishes to exercise an option in the contract that benefits them, I'm certain they will. That's business.
What's your problem with that?