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do i owe taxes on the negative balance of a forclosed property

Posted on: 29th Jul, 2009 03:30 pm
i have a primary residence and a second home that were both forclosed in tennessee. I owed 200K on them both they were both sold for 120K..... Do I owe taxes on the 80K and can the bank come after me for the 80K balance on both mortgages
Welcome hockeyplayer,

After the foreclosure sale, the lender has the right to sue the borrower for the deficient amount resulting from the sale of the property. However, if you can negotiate with your lender, he may forgive it.
Posted on: 29th Jul, 2009 08:03 pm
hockeyplayer

Welcoem to the forum

To answer you main question, you do nto owe taxes on the deficient amount

The lender may send you 1099C

Good luck and feel free to ask
Posted on: 03rd Aug, 2009 08:58 pm
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