Letting them go delinquent...sure more $ in hand but then my score (which I don't care about unless I need a rental for a few months before leaving the country) takes a hit and wind up in collections....where I may be able to settle for less than I owed? Is that the benefit to your recommendation there?Hi oceantide
Thanks for your post.
No, I don't think you'll ever need to file BK. I advised not paying off your CC balances. But, were it me, I'd let them go delinquent. Why? "Cash in fist" - your fist of course, LOL.
If your first was purchase money it's likely non-recourse and you won't be issued a 1099-C. If it's recourse, I'm glad to hear you may be able to get the insolvency exemption. In either instance, IMO you're better off going to FC because you'll be able to stay rent free for a much longer time.
First was $0 down.
After meeting with a real estate attorney (who is also a real estate agent in short sales ) he said DIL was a long shot, he could handle our short sale (of course he will!), and we would get a 1099-C with a FC even though WA State is 99.9% nonrecourse. Sigh, so many conflicting stories about whether or not you get a 1099-C, if it means anything or not, and how to handle it.