Posted on: 01st Aug, 2011 03:24 pm
my chapter 7 bankrutcy discharged in dec 2010. all my debts as well as first and second mortgage were included in the bankruptcy. in the bankruptcy i stated that i would abandon the residence which i have since done. the home is sitting and i have not received any foreclosure date, i have since been contacted by several realtors wanting me to short sale. my question is can i short sale the property and if so am i liable for the taxes on the amount the home is sold for in a short sale.
Hi a_nthony!
Welcome to forums!
You can short sale the property provided your lender agrees to it. You will be liable for paying the deficient balance resulting from the sale of the property. If your lender forgives the deficient balance, then there may be chances that you will be liable for paying the taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can short sale the property provided your lender agrees to it. You will be liable for paying the deficient balance resulting from the sale of the property. If your lender forgives the deficient balance, then there may be chances that you will be liable for paying the taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
thanks for the reply, if the lender agrees to short sale will i still be liable for paying the deficient balance even if my first and second mortgage were included in the chapter 7 bankruptcy which discharged in dec 2010. will i still be required to pay the taxes on the short sale amount also what determines if i am liable for for the short sale taxes.
Hi anthone!
Welcome to forums!
As your mortgages have been discharged in your bankruptcy, you won't be liable for paying the deficient balance resulting from the short sale, However, you may be liable for paying the taxes on the debt that has been forgiven.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your mortgages have been discharged in your bankruptcy, you won't be liable for paying the deficient balance resulting from the short sale, However, you may be liable for paying the taxes on the debt that has been forgiven.
Feel free to ask if you've further queries.
Sussane