Short Sale Answers

Short Sales
Short Sale Foreclosure Resource Certified Real Estate Broker Licensed in Oregon. What are the tax consequences of a short sale? Answer: As Real Estate Agents we can't give you tax or legal advice but we can recommend you read the IRS Page on Debt Forgiveness and if necessary consult a tax accountant or attorney to obtain further details to your situation* With that said many homeowners are not liable for federal taxes (although cash-out refinancing can create liability). According to the IRS: "The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence... Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners." *Some tax laws are…
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