Comments on: Am I still liable for tax on a 1099 with a shortsale vs a Foreclosure? http://www.fn-live.com/am-i-still-liable-for-tax-on-a-1099-with-a-shortsale-vs-a-foreclosure.html Loan and Financial Info Mon, 01 Feb 2010 15:06:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Rush is a band http://www.fn-live.com/am-i-still-liable-for-tax-on-a-1099-with-a-shortsale-vs-a-foreclosure.html/comment-page-1#comment-2522 Rush is a band Sun, 27 Dec 2009 09:27:48 +0000 http://www.fn-live.com/am-i-still-liable-for-tax-on-a-1099-with-a-shortsale-vs-a-foreclosure.html#comment-2522 You won't get hit with federal taxes if they forgive the difference. State taxes are an entirely different matter. Many foreclosures will not forgive the difference and they will come after you for the balance. That could cause liens on property, wage garnishment and possibly even drive you into bankruptcy. Many short sales agreements will include a forgiveness clause, but be sure it's there. good luck! You won’t get hit with federal taxes if they forgive the difference. State taxes are an entirely different matter.

Many foreclosures will not forgive the difference and they will come after you for the balance. That could cause liens on property, wage garnishment and possibly even drive you into bankruptcy.

Many short sales agreements will include a forgiveness clause, but be sure it’s there.

good luck!

]]> By: Real Estate Guy http://www.fn-live.com/am-i-still-liable-for-tax-on-a-1099-with-a-shortsale-vs-a-foreclosure.html/comment-page-1#comment-2521 Real Estate Guy Thu, 24 Dec 2009 04:00:31 +0000 http://www.fn-live.com/am-i-still-liable-for-tax-on-a-1099-with-a-shortsale-vs-a-foreclosure.html#comment-2521 YES!!!!!!!!!!!!!!!!! talk with a lawyer YES!!!!!!!!!!!!!!!!!

talk with a lawyer

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