Posted on: 06th Apr, 2012 09:17 am
:(
i bought my house in maine in 2004. in 2005 i did a refinance consolidation loan. i went through bankruptcy chapter 7 in 2007 but did not want to claim my house as i thought i would be able to keep up with those payments okay. i was not able to do so. i started working with chase in 2009 for a loan modification. after two and 1/2 years they finally gave me my answer which said i was denied. so in 2011 i did a short sale. first i was excited because of the $3,000 they pay you for staying in your home and not walking out. but now i just did my taxes and was totally depressed when i found out i have to pay $1,900 in federal taxes and $1,200 in state taxes ($3,100 total) on the refinance i did back in 2005! if i was aware of that in 2005 i would not have done the loan but i was so broke i had no choice. do i really have to pay this even though i did a short sale through my real estate broker and chase who i had my mortgage with? this just seems outrageous. i also would have held on to the $3,000 to pay these taxes if i had known i'd be hit with them. i thought all debt was taken care of in a short sale. i have already paid the taxes and had to get a loan to do so. i don't even have enough money for groceries when i get paid.
i bought my house in maine in 2004. in 2005 i did a refinance consolidation loan. i went through bankruptcy chapter 7 in 2007 but did not want to claim my house as i thought i would be able to keep up with those payments okay. i was not able to do so. i started working with chase in 2009 for a loan modification. after two and 1/2 years they finally gave me my answer which said i was denied. so in 2011 i did a short sale. first i was excited because of the $3,000 they pay you for staying in your home and not walking out. but now i just did my taxes and was totally depressed when i found out i have to pay $1,900 in federal taxes and $1,200 in state taxes ($3,100 total) on the refinance i did back in 2005! if i was aware of that in 2005 i would not have done the loan but i was so broke i had no choice. do i really have to pay this even though i did a short sale through my real estate broker and chase who i had my mortgage with? this just seems outrageous. i also would have held on to the $3,000 to pay these taxes if i had known i'd be hit with them. i thought all debt was taken care of in a short sale. i have already paid the taxes and had to get a loan to do so. i don't even have enough money for groceries when i get paid.
Hi Barb,
You should contact a tax adviser immediately and take his opinion in this regard. He will be able to give you some suggestions in this matter. As far as I know, if your deficient balance is forgiven by the lender after the short sale, then you may be considered liable for paying taxes to the IRS.
You should contact a tax adviser immediately and take his opinion in this regard. He will be able to give you some suggestions in this matter. As far as I know, if your deficient balance is forgiven by the lender after the short sale, then you may be considered liable for paying taxes to the IRS.
Hi Barb,
All your debts are not taken care in short sale. In the process of short sale, your property has been sold off at a lower price. The rest of the amount is owned by you and you're liable for the payment of the deficient amount. Contacting a tax adviser, as suggested by Adonis, is a good option.
Thanks
All your debts are not taken care in short sale. In the process of short sale, your property has been sold off at a lower price. The rest of the amount is owned by you and you're liable for the payment of the deficient amount. Contacting a tax adviser, as suggested by Adonis, is a good option.
Thanks
Thank you. I did not owe on the deficiency from the short sale because I was insolvent which I filled out the form 941 (?). Just wish I was informed about this refinance tax back in 2005. I'm sure it must of been in the fine print. I appreciate your assistance.
Hi barb!
Welcome to forums!
Check out the fine print in order to find out whether or not anything of that sort has been mentioned there. You can take legal assistance in this matter as well.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Check out the fine print in order to find out whether or not anything of that sort has been mentioned there. You can take legal assistance in this matter as well.
Feel free to ask if you've further queries.
Sussane