After lots of wrangling, Gov. Arnold Schwarzenegger is finally ready to do right by strapped California homeowners. Currently, state law requires the payment of income tax on a homeowner’s canceled or forgiven debt on a short sale or foreclosure. What it means in practice is that a struggling homeowner who has either lost his...
Short sales are occurring with increasing frequency as a result of the poor economy and shrinking home values. What many people don’t realize is that if your lender allows you to sell your home at a loss, you may be liable for taxes on the losses incurred by the lender. The IRS considers a...
Out of work for more than a year, Dale Ottley was relieved when she was able to sell her Woodland Hills condominium for $230,000 – even though it was a “short sale” on which she lost $200,000. Now she faces the possibility of having to pay state income tax on the $200,000 debt that...
Unless the bank has agreed upfront to accept a short sale, which is rare, no one knows for certain — not the buyer’s agent, not the listing agent nor the seller — if a short sale offer will be accepted or rejected by the bank. Simply because a listing is advertised as a short...
Comments (7) With so many homes worth less than the balance of the loan, many more people are turning to short sales. A short sale is when your lender agrees to let you sell your house at a loss rather than let the home go into foreclosure. But it’s no slam-dunk. Sara Williams and her...
Big US banks including Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are moving to clear their books of troubled mortgages by embracing “short sales”, in which homeowners settle debts by selling their properties for less than the mortgage value. Short sales are expected to climb sharply this year as home values continue...
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