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Thumbelina

Mtg Forgiveness Debt Relief Act

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Does anyone know if this will be extended in 2014?

After 2 yrs of run around with B of A we threw in the towel, the house was $200,000 underwater & the stress dealing with B of A was not worth it.

The 1st Auction date was in 2009 & it was postponed, relisted & postponed several times.

The last Auction date was in 12/2012 we thought this is it & tired of living with everything packed up for so long so we said goodbye to Az & moved back east. We notified B of A the house was empty.

This year they sold the loan to SPS & they keep sending us statements with a balance due of $98,000. I keep calling them telling them we are not going back & please forecloose.

If they dont foreclose this year then are we gonna be stuck paying taxes on $365,000?

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You would not owe on $365k, you would owe taxes on the $200k but even there, you might qualify for insolvency for most of that (after all, most people who do not own a home would have a net worth of $200k).

You need to find out if this balance is due to the property being sold and that is what is left. If so, then this is what you would technically owe taxes on.

You could also do a Ch7 BK and that would stop any taxes. That would also force the banks hand to foreclose because at that point, that would be the only way they would get money back.

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