Trying to clarify some information that I heard from my tax preparer, does anyone know that as of 2012 any forgiven debit (that lender writes off as a result of a short sale) will be required to be counted as income for the homeowner?
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i just closed one,but my understanding is that there will be no deficiency to follow the short sale seller. i read this somewhere
but,i am not sure about the income part of this . i need also to find this out also.
leighton jackson
The Mortgage amount cannot exceed the purchase price plus repairs/upgrades to the house. If they took out a 2nd to improve house that's good also but to go on vacation that would not be exempt.
The law is in effect until the end of 2012. The limits are up to $2,000,000 for married couples filing jointly, or $1,000,000 if filing separately. The Emergency Economic Stabilization Act of 2008 extended the time period through December 2012.