Posted on: 17th Nov, 2008 10:02 pm
I have an 80/20 in CA and am getting behind. My job may relocate me to another state where I will lease not buy. If I sign up for short sale and pay my first and maybe a small part of my second. What will happen to the remainder of the second loan? how will this affacte my 09/10 Taxes. I am not planning on buying whereever I move. I understand a 200-300 credit score reduction and 18-36 month hold on borrowing. I just want some more clear info on Tax liabilities with the new laws and acts just passed. Thanks in advnance
hi rr,
the second lender can either forgive the deficient amount or may charge it off to a collection agency. if your debts are forgiven, then according to the california debt relief act, you will not have to pay the taxes.
if the lender charges it off to a collection agency, then the collection agency will ask you to pay it off. to know more about second mortgage charge off, visit the given link:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks
the second lender can either forgive the deficient amount or may charge it off to a collection agency. if your debts are forgiven, then according to the california debt relief act, you will not have to pay the taxes.
if the lender charges it off to a collection agency, then the collection agency will ask you to pay it off. to know more about second mortgage charge off, visit the given link:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks