Posted on: 26th Mar, 2010 11:03 am
Hi,
I own a home in Long Island that is listed as my primary address. I bought the property in 2007. Someone has lived there for 2 1/2 years and paid the mortgage. The mortgage is now due for 5/09 and fourclosure proceedings have started. I currently am trying to evict the tenant but we are in court now. She dosn't want to give up the property since she's paid for it in the past. I also have it listed with Century 21. They will not give up their rights as the seller. I have given them permission to negotiate with the bank for short sales. Can you help me with this?. Is a deed in lieu the best thing for me. What would be my tax implications on the loss. I understand the bank issues a 1099 for loss. I really didn't want this property in the 1st place. the mortgage is $490,000 and the property is worth about $270,000 now. I really need you help. Please.. Thanks Eddie
I own a home in Long Island that is listed as my primary address. I bought the property in 2007. Someone has lived there for 2 1/2 years and paid the mortgage. The mortgage is now due for 5/09 and fourclosure proceedings have started. I currently am trying to evict the tenant but we are in court now. She dosn't want to give up the property since she's paid for it in the past. I also have it listed with Century 21. They will not give up their rights as the seller. I have given them permission to negotiate with the bank for short sales. Can you help me with this?. Is a deed in lieu the best thing for me. What would be my tax implications on the loss. I understand the bank issues a 1099 for loss. I really didn't want this property in the 1st place. the mortgage is $490,000 and the property is worth about $270,000 now. I really need you help. Please.. Thanks Eddie
hi epw!
welcome to forums!
you will have to apply with the bank for a deed in lieu of foreclosure. if you can convince the lender about your hardship, he will be ready to accept your request. in a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. thus, you won't have to pay it. the forgiven amount will be considered as your income and the irs can charge taxes on it. however, depending upon the mortgage debt relief act, you may not have to pay the taxes.
feel free to ask if you've further queries.
sussane
welcome to forums!
you will have to apply with the bank for a deed in lieu of foreclosure. if you can convince the lender about your hardship, he will be ready to accept your request. in a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. thus, you won't have to pay it. the forgiven amount will be considered as your income and the irs can charge taxes on it. however, depending upon the mortgage debt relief act, you may not have to pay the taxes.
feel free to ask if you've further queries.
sussane