Posts Tagged ‘mortgage foreclosure’
Liability of Seller after Foreclosure of Mortgage Assumed by Buyer
Question: When we sold our Glendale home two years ago the buyer assumed our mortgage that had a low 3% interest rate. The buyer is now in default on this 3% mortgage, and we are receiving default notices from our lender. If the buyer doesn’t make the payments on this 3% mortgage, will we have…
Read MoreLife After Death? Extension of Debt Relief?
Any forgiveness of debt is generally taxable income. In 2007 during the height of the housing crisis the Mortgage Debt Relief Act was passed. Under this Act any debt forgiveness after foreclosure or a short sale by a mortgage lender on a loan used to purchase a primary residence, or to make improvements to…
Read MoreStrategic Defaults Are Not “Illegal”
Hypothetical: Microsoft founder Bill Gates owns a rental home in Arizona which is “underwater” because the value of the home is less than the amount owed on the mortgage used to buy the home. Bill Gates intentionally stops making the mortgage payments, and the mortgage lender forecloses. Issues: Does Bill Gates have any personal liability…
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