Posted on: 10th Sep, 2009 02:01 am
when doing a Deed in lieu, would you have to pay taxes at the end of the year...would you have to pay taxes after a deed in lieu.
Hi pitipin,
After a deed in lieu of foreclosure, the lender will forgive your deficient amount resulting from the sale of the property. Depending upon the Mortgage Debt Relief Act, you will not have to pay the taxes on the forgiven deficient amount. You should contact an attorney and check out whether or not this law is in force in your state.
Take care.
After a deed in lieu of foreclosure, the lender will forgive your deficient amount resulting from the sale of the property. Depending upon the Mortgage Debt Relief Act, you will not have to pay the taxes on the forgiven deficient amount. You should contact an attorney and check out whether or not this law is in force in your state.
Take care.