Mortage Forgiveness Debt Relief

**phythomp** · 07-28-2008, 04:19 PM

Howdy,

I am refi again with Equifirst. My current loan is 281K at 7.87%. I recieved mail from Equifirst stating that I could refi with lower rate(6.87%). I also do not have to pay prepayment penalty. With the loan I thought I was getting the loan would be 286K at 6.87%. I currently pay per month 2330.00. With the new refi it was suppose go down approx 60.00 dollars.

Well I found out that my townhouse appriased at 201K(OMG!!!!!) . According to appraiser it drop approx 80K. The loan officer said that I might get approved to have the 80K forgivin under the Mortgage Forgiveness Debt Relief Act 2007.

The loan officer did not mention this when I first begain signing the loan forms for lower interest rate.

I found out today that I got approved for the Debit Relief for 80K. I believe this is too good to be true!

My question is, do I have to pay taxes at the end of the year for 80K? Is this a good too be true deal.

Any help would be appreciated!!!

**jamesww** · 07-28-2008, 06:43 PM

Originally Posted by phythomp

Howdy,

I am refi again with Equifirst. My current loan is 281K at 7.87%. I recieved mail from Equifirst stating that I could refi with lower rate(6.87%). I also do not have to pay prepayment penalty. With the loan I thought I was getting the loan would be 286K at 6.87%. I currently pay per month 2330.00. With the new refi it was suppose go down approx 60.00 dollars.

Well I found out that my townhouse appriased at 201K(OMG!!!!!) . According to appraiser it drop approx 80K. The loan officer said that I might get approved to have the 80K forgivin under the Mortgage Forgiveness Debt Relief Act 2007.

The loan officer did not mention this when I first begain signing the loan forms for lower interest rate.

I found out today that I got approved for the Debit Relief for 80K. I believe this is too good to be true!

My question is, do I have to pay taxes at the end of the year for 80K? Is this a good too be true deal.

Any help would be appreciated!!!

This question should be asked of a tax attorney. No agent, loan officer, or broker may answer this question for you. I have provided a link below to a forum where you can recieve free legal advice.

http://forum.freeadvice.com/

**LeeCunningham** · 07-29-2008, 12:19 AM

Originally Posted by jamesww

This question should be asked of a tax attorney. No agent, loan officer, or broker may answer this question for you. I have provided a link below to a forum where you can recieve free legal advice.

Yep, you really need to ask a tax attourney.

(You beat me to it James. :P)