Supporting, Informing & Connecting People in Foreclosure
Does anyone know what the taxes would be if the balance of the mortgage is $124,000 and the house sells for $50,000? Do I get a 1099 for the difference and have to pay taxes? If so, how are the taxes calculated? As income? Or is it a lower percentage? Thanks in advance for any help you can give me. I'm thinking of doing the deed in lieu or am I better off doing a short sale?
Thanks for the reply. I heard that the only way to aviod a 1099 is if you have a low credit score (which I do now in 500's) and declare hardship. I am on social security disab. for 9 herniated discs and I get $174 per month for my pension. This should qualify me as a hardship. The bank is sending me the docs. I will have to read them very carefully before I sign them. Thanks for the info.
I totally agree. I don't trust the bank. I will contact an accountant or atty to find out the real truth. And I think the same might apply in a short sale. Either way, I will lose the argument. Thanks for all your advise. Bobbi
The attorney for the bank is Marshall Watson, a foreclosure mill atty, and they are very aggressive. They scheduled a hearing for next friday, May 18, for final foreclosure. I cannot afford an atty. I have sent the judge copies of all my docs to show it is fraud. So I have to wait and see what will happen. I am in NY and the home is in Fl. I have health issues and cannot leave here to go to court. I have requested that we do this by phone the day of the hearing, but no reply yet to my request. MERS is in the middle of this too. Watson atty has already been fined 2 million for their dirty deeds. I am fighting the best that I can. Thanks.