Posted on: 05th Dec, 2009 12:47 pm
Hello,
I reside in California and recently completed the process for a mortgage principal reduction on December 2, 2009. My mortgage amount went from $389,000 to $209,800, at 5.25% interest rate on a 30 year fixed. My question is, "The difeference in the mortgage amount, is it considered taxable income in California? If so, am I required to pay taxes on it or is it forgiven under the Mortgage Forgiveness Act?
I reside in California and recently completed the process for a mortgage principal reduction on December 2, 2009. My mortgage amount went from $389,000 to $209,800, at 5.25% interest rate on a 30 year fixed. My question is, "The difeference in the mortgage amount, is it considered taxable income in California? If so, am I required to pay taxes on it or is it forgiven under the Mortgage Forgiveness Act?
You will need to discuss with your cpa or attorney as it is specific to your financial situation.
Hi, who helped you with your mortgage principal reduction in California? Thanks!
Hi Joev!
Welcome to forums!
It is your lender who would help you in getting a principal reduction on your mortgage. You will have to contact him and inform him about your financial hardship in order to get the reduction.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is your lender who would help you in getting a principal reduction on your mortgage. You will have to contact him and inform him about your financial hardship in order to get the reduction.
Feel free to ask if you've further queries.
Sussane