Posted on: 30th May, 2010 09:01 am
I have a second home in FL that I could never sell and has been rented out for a number of years now. I used to have back-up income to cover the mortage between tenants and now my husband is un-employed and we cannot pay the mortgage. My tenants are moving in less than 2 weeks and I can't find anyone to replace them. I am looking at possible Deed-in-Lieu of Foreclosure but I need some more information. What are the tax implications? Affect on credit? I owe around $148,000 and I'm not sure of fair market value, but foreclosures in the neighborhood are selling from 100-120K. Thanks.
welcome sylvester,
you should immediately contact your lender and apply for a deed in lieu of foreclosure. however, you should note that the lender accepts a deed in lieu of foreclosure only when you've defaulted on your mortgage payments.
the deficient amount resulting from the sale of the property will be forgiven by the lender. though you will be liable for the taxes on the forgiven amount, you will not have to pay it depending upon the mortgage debt relief act.
you should immediately contact your lender and apply for a deed in lieu of foreclosure. however, you should note that the lender accepts a deed in lieu of foreclosure only when you've defaulted on your mortgage payments.
the deficient amount resulting from the sale of the property will be forgiven by the lender. though you will be liable for the taxes on the forgiven amount, you will not have to pay it depending upon the mortgage debt relief act.