Can I really be exempt from paying debt relief tax?
Yes. There are several ways and most people qualify. One can be exempt if:
Primary residence and original purchase money loan, Principal residence with a cash out loan up to the amount of money used towards the home, Incsolvency - more debts and liabilites than assets and Bankruptcy Chapter 7.
90% of the cases I see are better off doing a short sale than letting the house go to foreclosure. The main reason is the credit score. The next reason is to satisfy the lender instead of a possible deficiency judgement in the future for the lost amount. A short sale will satify the lien holder. More control of your situation. Peace of mind knowing you are doing the right thing and attempting to take care of the obligation. Stay in the home rent free until it sells. Get rid of high debt. For investors, continue to collect rent throughout the process. Remember, a great shgort sale agent handles all the paperwork and keeps this process simple and easy for the homeowner while the agent deals with the bank, the paperwork, and all the people in between.
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