susan1
Guest
|
 Posted: Sat Sep 05, 2009 4:53 pm Post subject: mortgage loan balance reduction |
|
|
Hi,
Our mortgage lender Wachovia, has sent us a loan modification agreement.
They are willing to reduce our interest rate, kick the loan out to a 40 yr. term, lower the payments and lower our principal balance by $135K!
Sounds sweet, however, I recently learned by a friend that we may be liable to the IRS for extra taxes on that $135K the bank is taking off of our balance.
Is this true? And if true, are there any deductions we can take to wipe that 135K out so we don't have to pay any taxes on this?
Thanks,
Susan & Robert
salbachhomes@cox.net (email)
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
 smithsussane
Joined: 18 Sep 2008
Posts: 4540
Location: Alaska
444.15 Dollars($)
|
| Posted: Sun Sep 06, 2009 11:28 pm Post subject: |
|
|
Hi susan!
Welcome to forums!
As the lender is forgiving a certain amount of debt, you may be liable for the taxes. The IRS would consider this as your income and can tax you for the same. However, I would suggest you to check out with a lawyer whether or not you can get your taxes forgiven as per the Mortgage Debt relief Act.
Feel free to ask if you've further queries.
Sussane |
|
