Comments on: The Roundup: The Scary Non-Celebrity Laker Fans

By: xv43

xv43 — Tue, 17 Jun 2008 15:26:05 +0000

Well okay!

By: Dirty Sanchez

Dirty Sanchez — Tue, 17 Jun 2008 14:23:48 +0000

@XV – from the IRS:

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Not to get into some nerdy pissing contest over taxes, but non-recourse loans are when the property is used as collateral (which is the case in the vast majority of loans). The lender forecloses on the property and has to eat the difference between FMV and the loan balance, and there is no taxable income to the individual.

If for some reason you didn’t secure the loan with the property, then yes, you would be on the hook to the IRS for the forgiven debt and you would still have the property.

Education, bitches!

By: pkiguy22

pkiguy22 — Tue, 17 Jun 2008 14:07:49 +0000

xv43, I completely agree that the bubble shouldn’t have formed like this in the first place, but this was due in large part to bad practices by lending firms and banks. I think Greenspan dropped the ball here on this one and he does share some of the blame here.

By: Jay V

Jay V — Tue, 17 Jun 2008 14:05:21 +0000

What a waste of time that Phillies’ pitching article was. Quite frankly, I wouldn’t trade the Phillies staff for the Mets staff. And if any team is making a run at the Phils, it’s the Braves, not the Mets.

By: xv43

xv43 — Tue, 17 Jun 2008 14:02:15 +0000

@pkiguy: I don’t know that it’s good for the economy, but it’s definitely necessary in the long run in the sense that it’s collapsing the bubble that had formed. But ideally, that bubble shouldn’t have formed in the first place.

By: August West

August West — Tue, 17 Jun 2008 13:56:09 +0000

The government is at fault for everything.

/August West
/Alicia Keys

Who else you think is putting the AIDS in our chicken nuggets? U niid to edukate yo-sef, yo.

By: pkiguy22

pkiguy22 — Tue, 17 Jun 2008 13:55:18 +0000

I just closed on my first house this last Friday. I am one of those people that benefited from this bubble burst because the house we purchased was worth less because of all the foreclosures on the market. Our broker was saying that things like this are actually good for the economy and market in the long run because it weeded out all the people who did have shady loans and were living way beyond their means. This also lets people like me who do live within their budget, get their feet inside the door.

By: xv43

xv43 — Tue, 17 Jun 2008 13:54:34 +0000

@Dirty, from wikipedia:

If the lender chooses not to pursue deficiency judgmentâ€”or can’t because the mortgage is non-recourseâ€”and writes off the loss, the borrower may have to pay income taxes on the unrepaid amount if it can be considered “forgiven debt.”

The vast majority of residential loans fall into this category.

By: August West

August West — Tue, 17 Jun 2008 13:53:44 +0000

@412

I 100% agree with that. I’ve been busting my ass since I was 14… bought my 1st car with money I saved refereeing soccer games, never got a credit card, worked my way through school and worked hard as hell to get a talent-based scholarship… It pisses me off that we’ve gotten to this point, but we’re here and we can’t turn our backs or else we’re all screwed.

By: tk

tk — Tue, 17 Jun 2008 13:52:53 +0000

irish – I enjoyed your Weezy/Bird Man reset about 35 comments ago.

That is all.