California Foreclosure Tax Consequences
California Foreclosure Tax Consequences
What is the worst foreclosure scenario for me?
I own a condominium in California, in reverse, I own several investment properties in ID, AZ, and NM that are either not cash flowing or hardly neutral. I lost a side business because market conditions was able to hold everything, but now I'm relying on my regular job is not enough. I do not see how things work in the economy and the real estate market may be better in the next two years mainly due to the credit crunch. My primary residence is the highest monthly liability. If I allow my primary residence to foreclosure or one, two, or all of my investment properties? If I lose my primary so I can hold on to my all investment property. If I keep my primary then i have to download some, if not all my investment properties. I know that the fiscal, legal, credit and the consequences of foreclosure (investment vs. primary), but I am weighing the best worst-case scenario of a foreclosure is my case. I like this and never intended for this to happen.
You are not alone. Many people face this same dilemma. If you let go of his residence, where you live, and how this will affect your budget? Can I get one of their vacation at a lower cost if you lose your home? I agree that the market California stench of a couple of years so do not expect any help from the market. Ben Bernanke, suggested this week that lenders must give up some main rewrite the terms that allow people to save their homes. I doubt I get much joy in the lenders collection departments, but you can ask. I think is necessary to analyze each property. The California condo is a loser and will be for a while, how long are you willing to ride that? Az property not will be much better I think. The Idaho and New Mexico properties might be okay, no negative rather than here. You are in a tough spot and there is no answer easy. At least the tax laws will help this year – no income tax on phantom income debt forgiven. I think my conclusion is, to protect your home and family. Sorry about this, I wish you well. Let me know if I can help, I am a RE Broker Caliph as well.
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