Back To Blog

Short Sale in 2014? No "Debt Forgiveness" Tax Worries

In  general, tax law identifies the difference between what a borrower owes and what a borrower actually pays to the bank in a foreclosure or short sale as taxable income. This can be a nightmare for already cash-strapped sellers. There is good news, though.

As a result of recently passed legislation, sellers won't pay tax on any mortgage debt forgiven or cancelled by a lender in a short sale, foreclosure or loan modification in 2014.




    Add Comment

    Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.


    1. No comments. Be the first to comment.