Posted on: 11th Oct, 2010 08:59 am
Due to divorce, I moved out of my Michigan home first and eventually my ex-spouse who is also on the mortage did also. Two years later we finally got approved for a short sale and the bank will forgive the debt. However, they are issuing a 1099 for the difference which is substantial. Since we moved out before the short sale and the home was vacant for over a year (not a primary residence) is there any other protection under the Mortgage Forgiveness Debt Relief Act?
Hi myoungling!
Welcome to forums!
Though you moved out of the property, I guess you'll be able to take the advantage of the Mortgage Debt Relief Act. Nevertheless, you should contact a tax adviser and get his opinion in this matter. He will guide you in a better manner in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Though you moved out of the property, I guess you'll be able to take the advantage of the Mortgage Debt Relief Act. Nevertheless, you should contact a tax adviser and get his opinion in this matter. He will guide you in a better manner in this regard.
Feel free to ask if you've further queries.
Sussane