If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the differe
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My mortgage is $325k 1st loan & $107k heloc. Do i still have to pay the difference to my lender? Can they go after me even if i qualify for debt forgiveness?
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?A short sale requires permission of the lender, otherwise you have defaulted on your loan, so without their permission you would have to pay the difference.
The good news is the IRS just ruled that you are not liable for taxes on the amount of the loan forgiven by your lender.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?You don't qualify for forgiveness with 2 loans.
I seriously doubt they will approve this short sale, but you can ask them what they are going to do while you are asking permission to short sale it in the first place.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?Agree with #1. If you are 225k in the hole, is bankruptcy an option? Or abandoning the home to the lender?
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?You are still required to pay off your loans.
If i short-sale my house for $200K and i owe $425K on my mortgage do i still have to pay the difference?If it were to be approved, they can either 1) forgive the debt (which would be doubtful) 2) issue you a 1099 for the difference and you would then claim it as income on your taxes or 3) they would set up something where you would owe them the difference. # 2 is the most likely. There has been a lot of talk about tax breaks to people who have this (the 1099 due to a short sale) or a 1099 due to a foreclosure.
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