Of course the amount they are under water when they sell will be counted as ordinary income for tax purposes.
Do you really think it is set up that way?
Of course the amount they are under water when they sell will be counted as ordinary income for tax purposes.
There’s a moratorium on that per the broker at the office I’m affiliated with. I have the docs but drive crashed last week and have to recover them.
Although, everyone is correct in talking about banks loaning money to those that couldn’t afford to repay it, the reverse is true as well. I’m working with a client that was working for Chrysler and he and his wife just completed their home when Chrysler folded. Now things are bad in the area and they were forced into the short sale scenario. They hung in as long as possible but with Chrysler gone...along with good paying ‘blue collar’ positions, they had no choice.
Which makes me wonder why anyone would agree to do a short sale????