deed in lieu of foreclosure: Home Foreclosures, Deeds In Lieu of Foreclosure and Short Sales... Credit and Tax Ramifications
- 05/07/12 03:54 AM
Home foreclosures, Deeds in Lieu of foreclosure, short sales and tax ramifications. Although the economy is starting to improve, many clients are still facing unaffordable mortgage payments and/or homes which are “upside down” (mortgage balance is greater than property value). As a result, foreclosures, deeds in lieu of foreclosure and short sales are still commonplace. Foreclosure. Payments are in default and lender repossesses home. Credit. Severe impact; lowers FICO score 200-300 points; remains on credit report for 7 years from date of filing. Ordinary Income Tax. Under the Mortgage Indebtedness Forgiveness Act, may exclude up to $2 million of “qualified … (0 comments)
Home foreclosures, Deeds in Lieu of foreclosure, short sales and tax ramifications. Although the economy is starting to improve, many clients are still facing unaffordable mortgage payments and/or homes which are “upside down” (mortgage balance is greater than property value). As a result, foreclosures, deeds in lieu of foreclosure and short sales are still commonplace. Foreclosure. Payments are in default and lender repossesses home. Credit. Severe impact; lowers FICO score 200-300 points; remains on credit report for 7 years from date of filing. Ordinary Income Tax. Under the Mortgage Indebtedness Forgiveness Act, may exclude up to $2 million of “qualified … (0 comments)
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