question everything
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Mon Jul-28-08 07:39 PM
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I think that the danger was that the difference between the amount of the loan and the sale amount was considered a taxable income, and I think that Congress was going to pass a law nullifying this practice.
Any idea? (A co-worker needs to know..)
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JuniperLea
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Mon Jul-28-08 07:48 PM
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A short sale is when you get the lender to agree to an amount lower, or "shorter" than the principle balance on your mortgage.
The difference between the mortgage principle balance and the sale amount, if greater than the mortgage principle, is income.
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PSPS
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Mon Jul-28-08 07:49 PM
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2. If it was a first mortgage, is may be exempt as a "non-recourse loan" |
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Or, alternatively, insolvency may exclude the difference too. Here's a brief writeup: http://www.irs.gov/newsroom/article/0,,id=174034,00.html
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question everything
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Mon Jul-28-08 07:59 PM
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so now they can call the IRS directly if they are not sure.
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DU
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Thu May 02nd 2024, 09:32 AM
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