Just when I think I have my brain and emotions wrapped around this foreclosure thing, something springs up that starts me crying again.
This time it was a UPS notice from my mortgage servicer, Select Portfolio Servicing (SPS).
I'm not taking this as a good sign.
This sent me into a
crying jag which is a clear signal I'm not at peace with my situation.
It has been a few weeks since I last posted. Wrapping your head around the real possibility of losing your home can inhibit the creative process.
I've also started the process of telling people that I owe money to what's going on and that I haven't forgotten about repayment.
Naturally it will take a touch longer with the mayhem that's occurring right now.
So far everyone has been incredibly understanding and supportive.
In an ironic twist, people are telling me their personal stories regarding their attempts at mortgage modification, failed modifications and short sales.
It ain't looking good folks.
In the course of one of those conversations I discovered that if the amount of a short sale doesn't cover the amount of your mortgage, the difference is counted as income and you're sent a 1099.
For example, if you have a $100,000 mortgage and you short sale your property for $50,000, the additional $50,000 is reported as income to the IRS.
Ain't that a b*tch?
So if you're unemployed you're taxed on income you've never seen (or spent) and can't take your normal deductions via property taxes and/or mortgage interest.
I had decided that I wouldn't pursue a short sale option even before I found out the additional income reporting. The thought of helping SPS do their job while someone tenders a low ball offer for my home literally makes my stomach turn.
Foreclosures in Cook County tend to take at least a year after the paperwork is filed so I'll have some time to plan. I'm also finding out that the door may not be closed to saving my home due to the Cook County Mortgage Foreclosure Mediation Program.
So an option is available if I need it but I'm still diligently pursuing viable job leads.
As I stated previously, the second wave of the housing market crash is coming. My prediction is that it will hit in the fall or the first half of 2011.
People who have been laid off in '08 and '09 are just running out of money. They've plowed through their savings. They've cashed out the 401 (K)'s. They've raided the pension funds. It's all gone, they have nothing left but unemployment.
I don't have bales of research or trending material to support my claim. I'm simply sitting at ground zero and personally know others who are about six months away from their own mortgage meltdown.
Time will tell if I'm right. I pray that I'm not.
Because if I am people will need to start finding their own peace.