Posted on: 19th Jan, 2010 06:46 pm
I lost my home to foreclosure. I owed 300k the bank sold the house for 79k. What is going to happen to me this tax year and what should I do?
Hi Pkelly!
Welcome to forums!
In California, the lender will not be able to sue you for the deficient balance resulting from the sale of the property. Thus, it will be considered as your income by the IRS. However, California has the Mortgage Debt Relief Act according to which you won't have to pay the taxes on the deficient balance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In California, the lender will not be able to sue you for the deficient balance resulting from the sale of the property. Thus, it will be considered as your income by the IRS. However, California has the Mortgage Debt Relief Act according to which you won't have to pay the taxes on the deficient balance.
Feel free to ask if you've further queries.
Sussane