Upside down
Date: Fri, 09/21/2012 - 22:40
Hi! We bought our second home for 270k in 2006. We got an equity from our first home and was able to put about $60k down on our second house. Now, it's year 2012 and we still owe $183k on the house. The house is only worth $85k now. My husband makes less since joining the army. What's my option? I want to let go of the house but I don't want the IRS to go after me. What's my best option.
You can call your lender and ask for deed in lieu of foreclosure
You can call your lender and ask for deed in lieu of foreclosure. That might be of some help if the lender agrees to it that is. In such a case, the property would be foreclosed and sold. The IRS will not be coming after you given the fact that the Mortgage Forgiveness Debt Relief Act is still in effect for the time being.
