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smithsussane · Posted: Sun May 10, 2009 8:30 pm Post subject:

Hi Tessa!

Welcome to forums!

If you let the property go into foreclosure, the lender can come after you for the deficient amount as the mortgage is in your name. If you cannot pay the deficient amount, the lender will have the right to place a lien on your property. However, if the lender forgives the deficient amount, then you won't have to bother about it.

Feel free to ask if you have further queries.

Sussane

Guest

Hello, I had to short sale my 2nd home in AZ and I have a property in OH and my primary residence in NC. Do I have to pay the taxes on the deficient amount of the short sale property? and if I don't....can they come after my other properties in OH and NC?

jameshogg · Posted: Wed Sep 21, 2011 9:56 pm Post subject:

Hi Steven,

If the lender has forgiven the deficient balance resulting from the short sale of the property, then the forgiven amount will be considered as your income and you will be liable for paying taxes. If you don't pay the deficient balance, then the lender may file a lawsuit in OH or NC and place a lien on any of those properties.

Thanks

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What are the short sale tax ramifications?