congress passed and now intnl stock market...#2

[enjoy the ride]

One thing about the situation- unless one of the wealthier people, we are all in the same boat. A lot of dreams stand to change from acquiring things to hopefully more enjoyment of the real pleasures of life. I just hope that there is not a sizable loss of jobs- that people still can support their families themselves.
Unfortunately my Congressman did vote for it- sent emails saying he did so as a choice between watching the ecomony sink and voting for this bill. I respnded that was not the choice at all- the choice was getting together a designing a bill to try to help the root of the problem and the most people or taking the easy way out and voting for this.
A by the way- a friend told me that if a person does a short sale to avoid foreclosure, the lender sends them a 1099 to report the difference between what the house sold actually sold for and the amoun owed on the loan so that they can pay capital gains tax on it................

 

[FarmerChick]

I chatted with Tony last night.....I told him we are reigning in the finances even tighter cause worse times are coming.

Morel is right. We see it coming and can prepare. I know I am......it won't be many monster changes, but slowly I am incorporating what I need to take care of this family come what may.....and it is coming, I feel it in my bones. The hardest hit hasn't happened yet.

Fingers are crossed for everyone's jobs. As long as you have a job you can possibly survive and a roof over your head. Key being some money coming in and I hope everyone the best of luck in the harder times ahead!!!! But all of us self sufficient types, being the type we are, there will always be bread on our tables..LOL..even if I don't eat bread..HA HA HA

 

[purplebaby7]

A by the way- a friend told me that if a person does a short sale to avoid foreclosure, the lender sends them a 1099 to report the difference between what the house sold actually sold for and the amount owed on the loan so that they can pay capital gains tax on it................

yes, that is true. HOWEVER, with a short sale it can be negotiated by the attorney in the sale to not get the 1099 and some states even the real estate agent selling the house can negotiate it out.

 

[enjoy the ride]

purplebaby7- How is that actually arranged?

 

[Homesteadmom]

I am so glad I got my rhubarb plants the other day, now I just need to get them in the ground. Trying to decide what trees are the most important to me fruit wise. Thinking apple for sure, lemon & pear. Looking into if I can plant them now here or have to wait till spring if so I will put the money away for them now in case things fall apart by spring. Just hoping our seasonal job will still be there for us this Thanksgiving & Christmas. We get at least $1500 for ourselves & about $500 for my dad & another $200 for ds#1 at least. But I will be doing more this yr as ds is working fulltime now. And the money is tax free as it is not reported. Keeping my fingers crossed for that one. But the farmers need their cotton ginned no matter what so hopefully we will get it for at least this yr again.

 

[poppycat]

A by the way- a friend told me that if a person does a short sale to avoid foreclosure, the lender sends them a 1099 to report the difference between what the house sold actually sold for and the amount owed on the loan so that they can pay capital gains tax on it................

yes, that is true. HOWEVER, with a short sale it can be negotiated by the attorney in the sale to not get the 1099 and some states even the real estate agent selling the house can negotiate it out.

From what I understand there is tax forgiveness on the capitol "gains" incurred by a short sale as long as the house was your primary residence. I don't think that a real estate agent has the ability to negotiate with the IRS.

The lender can transfer the deficit between what you owe and what you sold the house for in the short sale to an unsecured loan that would appear on your credit report. This can also be negotiated down, though probably not by a real estate agent. You would need to work with a consumer credit counselor as well.

 

[Cassandra]

Check out the wiki entry for short sale. It gives a really good explanation, in my opinion. The ideal outcome of a short sale, for the homeowner, would be to convince the lender to accept the proceeds from the house as payment in full on the loan--completely forgiving the balance remaining on the loan.

It can be done, but if you are not an aggressive/persuasive type, you might want a lawyer, a consumer credit counselor, or even a friend or relative to do the negotiating for you.

ETA: Also, from what I have been reading, you don't have to pay capital gains taxes on your primary residence (your home). There's some criteria you have to meet about how long you have been living there and how long you owned it. And you can only use this deferment every couple of years, but it sounds like there's usually no capital gains tax on your home. (usually)

Cassandra

 

[roosmom]

What is up with the international market? Why are they "tanking" (as the news called it). AND I am pretty sure I heard them talking about US helping stop the world market from "tanking". Why us? They didnt help us did they?

 

[purplebaby7]

purplebaby7- How is that actually arranged?

what i know is only from watching the short sales my husband has done (he is a real estate agent). when the homeowner authorizes him to, he not only takes the best offer to the bank and talks the bank into accepting the sale, and hopefully to not send an 1099 to the irs and the bank takes the loss. it has to do with proving hardship and they want to get financials on the seller, etc. it goes on the credit report as settled for less than full amount not foreclosure. he deals with the people (sellers and buyers) and the banks but not the irs.

there is also a new program "hope for homeowners" that can help you to save your house. there are financial forms, etc to fill out and the bottom line is that they get to have 50% of your profit when u do sell the house. it can lower your payment, reduce your loan amount and interest rate. we are doing it, so i will let you know how it goes.

 

[curly_kate]

What is up with the international market? Why are they "tanking" (as the news called it). AND I am pretty sure I heard them talking about US helping stop the world market from "tanking". Why us? They didnt help us did they?

From what I've read, the big lenders who we're bailing out sold them a bunch of the crappy home loans that they made by promising them that the housing market always goes up. How can ANYTHING always go up? Doesn't make a lick of sense....

The most frustrating thing to me, being an utterly practical, logic-ruled person is, who could EVER think that making loans to people with NO MONEY was a good idea????? It defies all logic! And these are people who are supposedly educated about such things. It's all about (*#$%^&* greed! I think all of our elected officials (including our lovely candidates) are culpable, which is why I'm voting third party this year. It makes my stomach turn to think about voting either Dem or Rep right now.

Boy, that's a pretty heated first post! You guys have sucked me in to another forum (on TEG and BYC, too).