What are all of the liabilities when doing a Short Sale?
On December 20, 2007 President Bush singed a measure to provide financial relief for financially strapped homeowners facing foreclosure. The bill gives a tax break to homeowners who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. NO TAXES WOULD BE OWED ON THE VALUE OF ANY DEBT FOREGIVEN OR WRITTEN OFF. Currently such debt forgiveness is taxable income. Click this site for complete article: http://www.msnbc.msn.com/id/22345416/print/1/displaymode/1098/ Always consult your local CPA for further information on this matter. It is important to note that if a property should go into foreclosure and is sold at auction the difference in the amount you owe on your loan and the price the lender will get on a foreclosure sale is much higher than the discount they will give at a short sale. Completing a successful Short Sale will eliminate a Deficiency Judgment from happening and minimize the tax liability you may have. It will also stop you from having a foreclosu
