How to not be taxed after a short sale
Thanks you so much !
I really appreciate ur quick response. Its really a grt help!
Have a grt weekend
Joel:
Most likely you will get a 1099C for the amount the bank lost. However, if the property is your primary residence IRS Form 982 will get you out of payment. Talk to your accountant about that. Let me know if this helps.
Sincerely,
Oscar
Thank u so much!!!
i hVe another question , i owe d bank $ 560,000.00 n they will settle for $ 312,000.00 . My question is, will d difference will go under my income at d end of d year? And pay taxes? Or am i covered under Forgiven Law?
Thanks n happy friday!
Joel
Joel:
Thanks for contacting me about your short sale questions. The quick answer is, depending on your state, most likely, if the second mortgage is a result of a refi, cash out or line of credit, then they will go after you. Better to take the release of lien with you owing them than having them try to suit you. You can probably later settle the release of lien for a lot less. Might as well avoid the foreclosure. Here is an article for you.
Does this help?
Oscar
Name: Joel
Address:
I need an advice. Im in the process of short sale, my first approved the sale but my secoond denied it. my second wants me to pay the remaning balance at first, but my realtor negotiate. now the options they gave me was to pay 25000.00 and d deal is close. option 2 is pay 4200.00 to release the lein and pay the remaining 37,000.00 aferwards..
both options are impossible, and am not doing it.
whats going to happen if i close escrow wwithout paying them the $37,000.00 afterwards? can they sue me or run after me?
whats my best options? thanks…
if i foreclosed can my second run after me still?
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