[number335]

I am upside down on a rental property mortgage and CHASE has offered to reduce/modify my current loan amount from $182,325.94 to $115,500.00 ($66,825.94 reduction). I originally put down $50,000.00 and have paid approx $12,000.00 in principal towards the loan.

I do not occupy the home, so I don't think I qualify for the loan modification relief act that would relieve me from any tax liability for the $66k reduction.

If I agree to this loan modification, will I be screwed with having to pay taxes on the $66k?

[ABQ325i]

Speak with a real estate lawyer before signing anything.

[Freakazoid]

Originally Posted by ABQ325i

Speak with a real estate lawyer before signing anything.

+1 very strong chance of having to pay taxes...and watch for the fine print

[MisterSkiMask]

Originally Posted by Freakazoid

+1 very strong chance of having to pay taxes...and watch for the fine print

Yes, I believe that $66,xxx would/could be treated as income by the IRS...then you are dealing with them!

Talk to someone who knows!

[double_j]

Damn - you lost 50% of the value? I know things were way overpriced in CA, but I had no idea it was that bad. All of a sudden, NJ seems OK (My home value only dropped by about 20% or so).

I agree - speak with a lawyer and read the fine print. That said, if you can afford the one-time tax hit & fees, it'll be hard to justify not taking that kind of deal.

[TunedM2C]

Yes, you'll have to pay the tax man.

[stimpy]

Nothing is free brother.