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What is my liability when doing a Short Sale?

April 26, 2017doing liability sale short

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What is my liability when doing a Short Sale?

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A. After a short sale you may be responsible for paying taxes on the difference in what you sell your property for and what you owed the bank (your lender may send you a 1099). This is because the IRS may consider the delta as income, which would be taxable. Or, your lender might also ask you to pay a portion of the difference back as an unsecured note.During negotiations with your lender, Pathway Ventures works to have the bank consider your debt settled.