Posted: Thu Sep 24, 2009 6:13 pm Post subject: Short sale in CA
I am getting ready to short sell my home in So. CA. I owe $866,000 and my home is worth about $575,000. Does anyone know if I'm covered under the Mortgage Relief Act of 2007 since I live in CA? I have a 1st and a 2nd, both of which were used to purchase my home.
As far as I know, in California, the lenders will not be able to come after you for the deficient amount resulting from the sale of the property. Also, you won't be liable to pay the taxes to IRS due to the California Mortgage Debt Relief Act. However, you would be responsible for paying the second mortgage dues. _________________ Procrastination is the enemy of your financial sucess
If your lender forgives the deficient amoutn then you are not laible to pay the taxes on it.
As adonis said you will be laible to pay the second loan, but if you can do deed in lieu then you may not be laible to pay the deficient amoutn for the second loan
The hard part is, gettign both the lenders to agree for deed in lieu
mxpilot15
