I will take your opinions with greatfulness

[Lucho]

Taxpayer owns a condominium; he was also the owner of 50% on another house (owned jointly whith his brother who lives in that house) Taxpayer quit-claimed his share to his brother but he(taxpayer)is still listed in the loan (something he didn't realized until few days ago) Brother is making timely mothly payments on that house. Taxpayer's mortgage loan on the condominium is a fixed loan (low interest) but he does not want to continue paying the mortgage. He (the taxpayer) stopped making payments in May 2008. It looks to me as a case of a suddenly impulsive change of mind (his icome is enough to pay for the mortgage but he won't pay it anymore)

What would happen in this scenario? Who will prevail? The financial institution or the taxpayer that refuses to continue paying the mortgage?

If the condominium is foreslosed, would he (taxpayer) qualify for the exclusion if there is forgiven debt?

Would the issue of being also listed as responsible on his brother's home mortgage loan comingle with the forclosure of the condominium?

He might need the advice of an attorney but I would like to read your opinions.

Thank you for taking the time to read the post

Lucho

[mcb39]

This sounds like one for Jainen. How can he just decide that he doesn't want to pay his debt? I would not involve myself in this scenario. I would refer him elsewhere.

[taxxcpa]

Taxpayer owns a condominium; he was also the owner of 50% on another house (owned jointly whith his brother who lives in that house) Taxpayer quit-claimed his share to his brother but he(taxpayer)is still listed in the loan (something he didn't realized until few days ago) Brother is making timely mothly payments on that house. Taxpayer's mortgage loan on the condominium is a fixed loan (low interest) but he does not want to continue paying the mortgage. He (the taxpayer) stopped making payments in May 2008. It looks to me as a case of a suddenly impulsive change of mind (his icome is enough to pay for the mortgage but he won't pay it anymore)

What would happen in this scenario? Who will prevail? The financial institution or the taxpayer that refuses to continue paying the mortgage?

If the condominium is foreslosed, would he (taxpayer) qualify for the exclusion if there is forgiven debt?

Would the issue of being also listed as responsible on his brother's home mortgage loan comingle with the forclosure of the condominium?

He might need the advice of an attorney but I would like to read your opinions.

Thank you for taking the time to read the post

Lucho

Your question may need clarifying. If his brother is making payments on the house, then there is no apparent problem in relationship to the house.

If your client is living in a condo and quits making the mortgage payments on the condo, then he will face foreclosure.

If the brother keeps paying on the house, it would not affect the other property in any way that I know of.

[Lucho]

This sounds like one for Jainen. How can he just decide that he doesn't want to pay his debt? I would not involve myself in this scenario. I would refer him elsewhere.

I already started my way out.

Thank you.

Lucho