Compare Mortgage Quotes

kbrowntc · Joined: 06 Mar 2010 Posts: 1 1.31 Dollars($)

I co-signed for my daughter's home and it is in forelosure.. I live in Michigan and she lives in Florida.. I have never lived in the home... she is the homesteader it is her first home and my husband and I own a home in Michigan.. we are terrified. If she loses her home in a forelcosure can I be resonsible to pay the tax on the home? If she short sales it, will I be responsible for the tax? if she does a deed in lieu will I be respoinsible for the tax.

Niicss · Posted: Mon Mar 08, 2010 3:01 am Post subject:

As you cosigned for your daughter's mortgage, the foreclosure, short sale or deed in lieu will have a negative effect on your credit report. In case of a foreclosure and short sale, the borrower is liable to pay the deficient balance to the lender. Thus, there would be no tax consequences. However, in case of a deed in lieu, the deficient balance would be forgiven. The IRS may charge you taxes for it but depending upon the Mortgage Debt Forgiveness Act, you may not have to pay the taxes.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

tax ramifications of losing home