Posted on: 17th Dec, 2008 06:42 pm
My husband lost his job yesterday, and we not going to be able to continue making payments on our house. I spoke briefly with a lawyer today who thinks we are good candidates to get a Deed In Lieu.
We are in the state of California, so the Federal Mortgage Forgiveness Debt Relief act of 2007 does not apply to us. California has their own debt relief act that only lasts until the end of 2008. It's already 12/18. If we are able to settle the DIL before 12/31, we won't have to pay taxes on the debt forgiven. I'm really hoping that we can get this taken care of quickly.
If it's too late for us, will we only have to count the debt relief as income on our California income tax, and not claim it as income on our federal taxes?
We are in the state of California, so the Federal Mortgage Forgiveness Debt Relief act of 2007 does not apply to us. California has their own debt relief act that only lasts until the end of 2008. It's already 12/18. If we are able to settle the DIL before 12/31, we won't have to pay taxes on the debt forgiven. I'm really hoping that we can get this taken care of quickly.
If it's too late for us, will we only have to count the debt relief as income on our California income tax, and not claim it as income on our federal taxes?
Anything like this takes months to process
Hi dianalipman!
Welcome to forums!
I don't think that the deed in lieu foreclosure will get completed so soon. I agree with Eugene Volovik, that it takes months to complete the process. Moreover, a lender will accept a deed in lieu only if you are delinquent on your payments for at least a month.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
I don't think that the deed in lieu foreclosure will get completed so soon. I agree with Eugene Volovik, that it takes months to complete the process. Moreover, a lender will accept a deed in lieu only if you are delinquent on your payments for at least a month.
Feel free to ask if you have further queries.
Sussane
