Posted on: 20th Jun, 2010 12:58 pm
Chase has sent me a loan modification package that will eliminate 97,702.00 from my mortgage balance. Will I have to pay taxes on the 97,702.00?
Thank you for your help.
Thank you for your help.
No you are not liable for tax payments on a loan modification. A loan modification is different than a short sale with tax liabilities. A loan modification is a pretty good deal if you are able to get one. Remember, if your loan modification has a trial period, your loan has not been modified until you have a competed your trial payments first. Make sure you still do what you need to do to complete your trial period or you may find yourself denied.
Thank you so much!
Loan forgiveness is taxable.
