Posted on: 17th Jun, 2009 01:43 pm
I am 130k under with my condo and considering a short sale. My question is:
Should my condo still be my primary place of residence (not a rental)? I am still living there.
Since I am still living in my condo, do I have to keep making mortgage payments, pay HOA monthly dues, and property tax?
I don't understand why my lender says a 1099 will be sent to me for any gains when the property is sold. As it is the value in negative, so how do they think I will make a profit?
Will I be forgiven debt upon final sales transaction?
Thanks so much for your response!
Should my condo still be my primary place of residence (not a rental)? I am still living there.
Since I am still living in my condo, do I have to keep making mortgage payments, pay HOA monthly dues, and property tax?
I don't understand why my lender says a 1099 will be sent to me for any gains when the property is sold. As it is the value in negative, so how do they think I will make a profit?
Will I be forgiven debt upon final sales transaction?
Thanks so much for your response!
blossomvalleysj
Welcoem to the forum
It will still be your primary redidence as long as you live there
I would suggest you to make payments on your loan, HOA and taxes to protect yoru credit score
Once the house is sold in short sale the bank would probably loose some money and that would be considered as a gain or income for you.
That is the reason thay will send you 1099-C forum.
few years back you would have paid taxes on that money, but looks like people in the goverment knew that this is goign to happne in a big way, they passed a law few years back, which helps you nad you do not need to pay any taxes on it
forgiven debt upon final sales transaction?
- That woudl depends on the agreement between you and the bank. You need to get a good short sale specialist
Welcoem to the forum
It will still be your primary redidence as long as you live there
I would suggest you to make payments on your loan, HOA and taxes to protect yoru credit score
Once the house is sold in short sale the bank would probably loose some money and that would be considered as a gain or income for you.
That is the reason thay will send you 1099-C forum.
few years back you would have paid taxes on that money, but looks like people in the goverment knew that this is goign to happne in a big way, they passed a law few years back, which helps you nad you do not need to pay any taxes on it
forgiven debt upon final sales transaction?
- That woudl depends on the agreement between you and the bank. You need to get a good short sale specialist