Posted on: 03rd May, 2010 02:42 pm
ive been throught the short sale now it was suggested by the lender to consider a deed in lieu of foreclosure.
am i obligated to pay the tax on the house or is that also forgiven.
am i obligated to pay the tax on the house or is that also forgiven.
Hi mercedez!
Welcome to forums!
In case of a deed in lieu of foreclosure, the deficient balance will be forgiven by the lender. This will be considered as your income and the IRS can charge taxes. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes on the forgive debt to the IRS.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In case of a deed in lieu of foreclosure, the deficient balance will be forgiven by the lender. This will be considered as your income and the IRS can charge taxes. However, depending upon the Mortgage Debt Relief Act, you may not have to pay the taxes on the forgive debt to the IRS.
Feel free to ask if you've further queries.
Sussane