The good news is that whether you do a short sale or a foreclosure you aren't going to take the entire financial loss. You will have to pay the IRS if your assets are greater than your expenses. If your mortgage on your primary residence added together with your car payments and credit card bills and all the miscellaneous bills is greater than your assets which is your stocks, bonds, savings accounts, other investment property, your equity in your home and your 401K, you may be insolvent. If you are not insolvent you will owe taxes on the amount "forgiven" by the lender whether you dispose of the property through a negotiated short sale or through a foreclosure. I recommend that you consult your accountant, tax professional and attorney before you take any action.
Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com.com
www.ShowcasePortfolioProperties.com
www.myspace.com/topkeysrealtor
Comments (0)Subscribe to CommentsComment