Bank of America (UTLS) trying to force short sale after my discharge

[nomore008]

My mortgage company called yeaterday and wanted me to refinance the house. I told him we filed for BK and surrendered the house. He said he would make a note of that. BK has been discharged but not clsoed yet. Lawyer said we are no long liable for the house, so we turned off the utilities. We moved out last Oct, we want to move on with our life. We got papers on the day we moved that they were selling the house on Dec 14, 2010. I don't believe that it was sold yet, we have been by the house and it dosen't have a lock on it.

Now they want to help, where were they when I asked for help last April?

[discouraged]

I just hope that some of this gets back to congress. All the 'Making Home Affordable Program" did was give the banks bail-out money. I've yet to hear where they actually helped people with lower rates. Well, maybe a few were helped but the most I got out of it was that they kept asking me to send paperwork that I'd already sent in - month after month after month, until I finally gave up.

[tobee43]

The thought just came to me. There are so many people moving out of thier homes when they file BK and renting the house out (as Calgirl67 has done) and some lenders are taking a very long time to foreclose (we are going on 2 years). Let's say a person owes more than they paid for the house at the time of the foreclosure (by re-financing and taking out equity) and it has been an investment property (rental) for more than 2 years while waiting for the lender to foreclose. Will that person lose their "primary residence exclusion" for captial gains tax purposes and end up having to pay capital gains taxes on that property? Am I missing something here? That would be a real kick in the face if taxes were owed after the BK is discharged and the house is foreclosed on.

well, you bring up some good points....

and one also being that when one usually takes a mortgage on a primary residence it at a lower rate than that of commercial real estate...as that of "rental" property. many of the mortgages actually have a clause written in the body of the instrument not allowing one to use the premises for commercial use. just another thought. i don't really know if there could or would be any repercussions on that situation....rental properties normal have deprecation as well...we didn't even think about renting our house after leaving because of the liability aspect ...but then again, maybe some are able to get the place insured...we were not.

[tobee43]

Wouldn't a shortsale be better than foreclosure in this case since you can buy a house sooner?

simply no...??? because of the possible tax ramifications???

[helphelphelp]

Even after Chapter 7 discharge you would have tax ramifications of shortsale? I understand there is no tax ramification if it forecloses but a shortsale would change that?