Posted on: 22nd Aug, 2011 01:17 pm
I am curious to know if the tax consequences are any different with a shortsale vs foreclosure
Hi a_nthony!
Welcome to forums!
As far as I know, there's hardly any difference in tax consequences for a short sale and foreclosure. In both cases, if the lender forgives the deficient balance, then you will be responsible for paying taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, there's hardly any difference in tax consequences for a short sale and foreclosure. In both cases, if the lender forgives the deficient balance, then you will be responsible for paying taxes.
Feel free to ask if you've further queries.
Sussane
A foreclosure is a repossession of a property by the lender because of a default by the buyer on a mortgage payment. Conversely, a short sale is a settlement with a lender that halts a foreclosure, if successful, and the property is purchased by a new buyer. Neither option is exempt from tax penalty in most cases, but the way these two methods are taxed are different.
