Special offer

IRS Foreclosure Tax Relief Available for Homeowners

By
Services for Real Estate Pros with PTF Financial Corp. - My Mortgage Company

A special Web section of the IRS site unveiled tax relief for homeowners who lose their home to foreclosure.

The IRS is taking steps to reassure homeowners that even though mortgage workouts, short sales, and foreclosures can result in income tax consequences - - - special tax relief provisions can greatly assist distressed borrowers.

The new section contains a diversification of useful data and worksheets.

Borrowers who have their mortgage debt reduced or elimated will receive Form 1099-C from the lending institution. By carefully examining the Form 1099-C they should be able to discern if the forgiven mortgage debt amount is properly reflected.

Related Item:Questions and Answers on Home Foreclosure and Debt Cancellation

 

Michael Lozar
Bellingham Mortgage Advisor 

 

David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City
This may not help those in short sale situations because normally the homeowner is not insolvent.
Sep 18, 2007 08:38 AM
Sean Allen
International Financing Solutions - Fort Myers, FL
International Financing Solutions

hhhmm, Vety Interesting information Michael. Thanks for updating us.

Sean Allen

Sep 18, 2007 08:48 AM
Michael Lozar
PTF Financial Corp. - My Mortgage Company - Bellingham, WA
Mortgage Loan Officer - Bellingham

Sean,

Glad to hear you found the information interesting. While I'm glad to see people have the opportunity for tax relief, I'm really hoping that the federal government doesn't engage in a bail-out for all the distressed sub-prime borrowers who gambled by taking on much more than they could truly afford.

Sep 18, 2007 08:52 AM