Posted on: 16th Jul, 2009 05:30 pm
I combined a equity line and my first mortage back in 2006 but now I have to short sale my home, which is my priciple res. in the state of Cal.
Will I have to pay taxes on debt relief and can the lender come after me for the difference?
Will I have to pay taxes on debt relief and can the lender come after me for the difference?
boscacci
Welcome to the forum
You do nto need to pay txes on the forgiven mortgage debt. Even though your lender may send you a 1099 forum, you just need to report it on your tax filign, but will not eb taxed
There always good possibility that your lender can come after you for the deficient amount. If you are doign short sale, make sure you negotiate this with the bank
Good luck and feel free to ask
Welcome to the forum
You do nto need to pay txes on the forgiven mortgage debt. Even though your lender may send you a 1099 forum, you just need to report it on your tax filign, but will not eb taxed
There always good possibility that your lender can come after you for the deficient amount. If you are doign short sale, make sure you negotiate this with the bank
Good luck and feel free to ask