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Valued Contributor
IOBA
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Registered: ‎08-13-2009
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Re: Lump sum or drag...it...out...

*sigh*   I don't think he can rent at all.   He's screwed up his credit - cc charged off, utilities turned on/off, late on his car payment, and so late with mortgage payments.  His SO is on the mortgage too, but really has no clue about what is going on.   SO says no to bringing in a room-mate.  SO expects my friend to be responsible for everything in terms of the actually paying of the bills.  They made an arrangement when they started to live together (when they bought the house) of how much money each would put into the "house fund" to pay for the house bills.   SO puts in xx amount every payday and is done with it.  Never follows up to make sure the mortgage got paid, etc.  

 

At this point, I am not sure if either one of them can get into an apt with their credit.  Income is not too bad.   But who wants to rent to a couple with dogs?  It's a tough renters market out there...and many apts around here will NOT take any pets!  *sigh*

 

None of his family or friends can take him in either.  

 

Anyone with feedback regarding the IRS liens??    Yes, the IRS does take a lot of his money (garnishing wages and intercepting his tax returns).   But they do it to get the money he owes.  And he owes a large buttload.   He had to get permission from the IRS to purchase the house.  The IRS said yes but we will immediately put a lien on it.  Which they did.

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drkaje
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Re: Lump sum or drag...it...out...

I'd rather not force censure but ..... not telling SO is pretty messed up, on his part. Doesn't SO get any notifications from the bank or check credit? Also, where is SO's mortgage payment going if not to the bank?

 

I can't blame places for not allowing pets, though. I've read and heard some horror stories about places being trashed due to pet owner irresponsibity.


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IOBA
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Re: Lump sum or drag...it...out...

The SO is "aware" but does not "care" about the finances.   And I personally think that  the SO can not grasp the consequences of not paying bills on time.   The SO has a nice paycheck, puts the required amount into the "house account" and spends the rest.  Happy go lucky attitude.   Even when told more money was needed because my friend at one time was underemployed, SO said nope.  

 

For that matter, I don't think my friend grasps the consequences or the big picture.   He knows foreclosure is probably, maybe coming.   But if he gives them a little cash here adn there, it will stall the foreclosure.  

 

Our friendship has definitely changed over this.   My friend wants to go out to dinner with me, but I won't.   Mainly becuase I know he can not afford to eat out.  Probably a shame on me for assuming that.  But if it were me, I'd be throwing as much money at the bank as fast as I could, while still praying for a modification,  and praying harder that a foreclosure was not coming my way.   But that is me.

 

Like this person, I have no family or friends houses I can move into.  

 

Any feedback on the IRS issue??

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drkaje
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Re: Lump sum or drag...it...out...

"Anyone with feedback regarding the IRS liens??    Yes, the IRS does take a lot of his money (garnishing wages and intercepting his tax returns).   But they do it to get the money he owes.  And he owes a large buttload.   He had to get permission from the IRS to purchase the house.  The IRS said yes but we will immediately put a lien on it.  Which they did."

 

They're pobably seriously screwed. So is foolish for having hitched their financial wagon to a star about to go supernova. :smileyhappy:


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StartingOver10
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Re: Lump sum or drag..It...out...


 

I spoke to one of the mortgage reps from my job and he confirmed my suspicion. The bank doesn't care if he pays increments every week, he's still late until he matches the total due for that month. From what you've described, he'll probably be late forever.


Exactly. The bank will put the money in a "suspense account" and not apply the funds until it can cover the amount due.

In the meantime late fees and default interest accrue.

 

As to the IRS lien, when the bank forecloses, the lien will get removed from the property - but not paid. It will remain an outstanding judgment on the person so the IRS will continue to collect the paycheck amounts (garnishments) and the refunds. If your friend were to ever buy another property then the lien goes back on the new property. The only way to get rid of it is to pay it. There are certain circumstances where the amount due can be discharged in BK, but that involves a certain timeframe for taxes that have been filed. He would need to speak to a BK attorney to get good advice.  After he is foreclosed upon, which seem inevitable given the description you posted, he may want to consider a Ch 13 anyway so he can take care of the IRS past due once and for all. Your friend is truly in denial and until he realizes it, things will get much worse. If he were proactive, he would be contacting a BK attorney right now because he might be able to save his house and pay the taxes through a Ch 13.

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Booner72
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Re: Lump sum or drag..It...out...

There must be something going on underlying this - the financial mess sounds like a symptom of something - Drugs?  Alcohol?  Grambling Problem? 

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jimbo831
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Re: Lump sum or drag..It...out...


Booner72 wrote:

There must be something going on underlying this - the financial mess sounds like a symptom of something - Drugs?  Alcohol?  Grambling Problem? 


Great point.  Any of these or possibly some mental disorder.

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drkaje
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Re: Lump sum or drag..It...out...


Booner72 wrote:

There must be something going on underlying this - the financial mess sounds like a symptom of something - Drugs?  Alcohol?  Grambling Problem? 


Why can't it ever just be plain 'ol stupid? :smileyhappy:


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StartingOver10
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Re: Lump sum or drag..It...out...


drkaje wrote:

Booner72 wrote:

There must be something going on underlying this - the financial mess sounds like a symptom of something - Drugs?  Alcohol?  Grambling Problem? 


Why can't it ever just be plain 'ol stupid? :smileyhappy:


How 'bout "ostrich syndrome"??? :smileyhappy:

Valued Contributor
IOBA
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Re: Lump sum or drag..It...out...

[ Edited ]

Booner72 - you are sooo good!  Yes, it is a sign of laziness and the entitlement attitude.   

 

He still hasn't given the bank a dime.   *sigh*   I think in his mind, if the payment is $500 (just a figure I am throwing out there), it will never change, regardless of how late he is.    He doesn't believe in late fees, penalties, or additional interest.  So in his mind, $500 = one payment, $1000 = two payments, no matter when the payment is made.

 

And he's not saving the money either.   Well, if he looses the house, he have very few, if any options for housing.


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