Posted on: 07th Feb, 2011 01:49 pm
I currently own a condo in smyrna,GA and I want to do a DIL. What are the repercussions of this. Do I have to pay the taxes? What am I responsible for?
hi stuckinsmyrna!
welcome to forums!
after a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. this forgiven debt amount will be considered as your income and the irs can charge taxes on it.
feel free to ask if you've further queries.
sussane
welcome to forums!
after a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. this forgiven debt amount will be considered as your income and the irs can charge taxes on it.
feel free to ask if you've further queries.
sussane
A deed in lieu will hurt your credit any where from 2- 7 years, although usually it will only stay on your credit for 2-3 years. If you give the house back to the lender, you may still be responsible for the difference once the house is sold by the lender. You should see if you can qualify for HAFA Home Affordable Foreclosure Alternative.