To: dawn53
I heard about this on a radio show on Saturday, but just a few minutes worth. There is a way you can ask the bank to waive or forgive the deficiency as part of the short sale but if not done properly, it sets up a big slug of taxable “income.” What a mess.
10 posted on
03/28/2011 7:32:24 AM PDT by
NonValueAdded
(Palin 2012: don't retreat, just restock [chg'd to comply w/ The Civility in Discourse Act of 2011])
To: NonValueAdded
I heard about this on a radio show on Saturday, but just a few minutes worth. There is a way you can ask the bank to waive or forgive the deficiency as part of the short sale but if not done properly, it sets up a big slug of taxable “income.” What a mess. TANSTAAFL
There ain't no such thing as a free lunch....
25 posted on
03/28/2011 7:59:24 AM PDT by
CatoRenasci
(Ceterum Censeo Persae Esse Delendam -- Forsan et haec olim meminisse iuvabit)
To: NonValueAdded
"There is a way you can ask the bank to waive or forgive the deficiency as part of the short sale but if not done properly, it sets up a big slug of taxable “income.” "
As of end of 2007, Chuckie Schumer law, which was retroactive, any deficiency forgiven as unpaid debt on primary residence under $500K is NOT taxable income.
I know because it happened to me.
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