Quote:
Originally Posted by NemesisEnforcer
When I first found out that people did this, I felt the same as you. However, in some situations, people put money into the house from their pockets or via a HELOC. When the home goes under, they are often faced with a 1099 to the IRS and/or state tax board for the difference between what’s owed and the selling price. Fortunately, some states have gotten rid of that practice during the meltdown.
Overall, if the system is going to make you continue to pay after a foreclosure, then take anything that’s not nailed down. If it’s nailed down get a hammer.
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That makes no sense what so ever. If the house is sold at a foreclosure sale for less than what you owe the bank then how in the hell are you going to get taxed for the difference that you are short? It isn't a capital gain, its a loss. If anything you would be writing off the difference depending on the situation, not paying more taxes for losing money.
The only "system" that is going to have you continue to pay after the foreclosure is when the property is sold for less than the amount you owe the bank, which is called a deficiency judgment. If you rip the shit out of the house then you just shooting yourself in the foot because by decreasing the value of the property it is going to sell for less and more you will owe. Now if you had a little equity in the property the person should have been looking to sell it or at worst do a short sale.
Quote:
Originally Posted by xenigo
No, what inspired me to make this thread was a few things... but not the property that I showed the photos of. A friend of ours had to buy a Miele dual-compressor built-in refrigerator that ended up costing $16k because the moron that was in the home before him took it with him...
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The moron was the person who paid 16K for a new refrigerator. Unless if it was a million dollar home there would have been other solutions for a fraction of that cost to put a new refrigerator in and make it work with the layout/ situation.