[hennie pennie]

Say, hsmomx3...

Apparently, IF there is a successful short sale to your parents, you will have to claim the money on your tax return as "debt forgiveness" ... OR something; sounds like a CPA and an attorney, as well as a realtor would be needed to confer with about the best option for you.

[Atlas Sneezed]

IF there is a successful short sale to your parents, you will have to claim the money on your tax return as “debt forgiveness”

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True, but when there is a foreclosure, there is usually a large capital loss because the sale is less than the buyer paid, and this (usually more than) offsets.

For those who bought low, mortgaged high, blew the dough, and can’t make the payments, they have tax troubles and little sympathy from me.