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vargasy1116 · Joined: 25 May 2010 Posts: 1 1.31 Dollars($)

My primary residence is OK - my income condo is not OK, I owe more than what the value of the property is. I owe $350,000 and the value of the property is $159,000. Can I still do a Deed In Lieu of Foreclosure? The properties are in the San Francisco Bay Area. Also what would the tax consequences be if I would do a Deed In Lieu of Foreclosure?

jameshogg · Posted: Wed May 26, 2010 2:01 am Post subject:

Hi vargasy,

As your property value has reduced, you will be able to go for a deed in lieu of foreclosure in order to get rid of the property. In case of a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. This forgiven debt will be considered as your income by the IRS. But depending upon the Mortgage Debt Relief Act, you won't have to pay the taxes.

Thanks

Guest

Thank you.

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I live in California and I own my personal property and one income property could I still apply for Deed In Lieu of Foreclosure?

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