Posted on: 22nd Dec, 2008 10:18 pm
i have two mortgages and i am looking into foreclosure. can the lender send you a tax bill for the second mortgage?
Welcome Guest,
If the property is sold at a lower price than the debts that you owe both to the first and second lender, then the lender will ask you to pay the deficient amount. If you cannot pay it and if the lender forgives this deficient amount, then IRS will consider this as your income and you will have to pay taxes on it.
If the property is sold at a lower price than the debts that you owe both to the first and second lender, then the lender will ask you to pay the deficient amount. If you cannot pay it and if the lender forgives this deficient amount, then IRS will consider this as your income and you will have to pay taxes on it.
Good Morning and Welcome to Mortgagefit!
You will need to find out if your state is a 'deficiency state'.
I know Florida is a deficiency state, and the 2nd lender will come after you for the money owed. It's best to speak to a real estate attorney who will be able to help you out
Good luck and keep us posted!
Robert
You will need to find out if your state is a 'deficiency state'.
I know Florida is a deficiency state, and the 2nd lender will come after you for the money owed. It's best to speak to a real estate attorney who will be able to help you out
Good luck and keep us posted!
Robert
