Posted in Labels: Foreclosure, Modification, Mortgages, NonRecourse, Recourse
Tax on Short Sale, Loan Modification and Foreclosure - Recourse vs Non-Recourse Mortgages Tube. Duration : 5.32 Mins.
realestatemarketingthisweek.com - Arizona is not a recourse state, so chances are you will not owe 1099 C Income - Part 6 - In Arizona, typically its not a recourse state, so if they are telling you that theyre going to garnish your wages because you didnt pay back your entire mortgage, there is a local bank ,that was threatening a very good colleague of ours about a small second mortgage that person had taken out. Threatening to send it to collections and garnish her wages. It simply isn't going to happen. But nevertheless, there is still the tax implications that apply, if you need to navigate through this maze. There is a lot to it, you need to protect yourself. You talked about bankruptcy is one of those exclusions, right? One of the problems with bankruptcy is people dont understand the bankruptcy laws. They are so tight now and your feet are really held to the fire from the federal government right now. It's not like you just didn't make your mortgage payment, so you go file bankruptcy, it's just not realistic. Assuming bankruptcy is the last resort option for everybody. And we certainly want to avoid that, it would not be sound financial advice from any credible source that I can think of. Let's walk through a case scenario, somebody who is listening to this broadcast, their head is spinning right now, they're thinking, oh my gosh. I should have known about the tax implications, a short sale versus loan modification. Let's start at the top and work through a quick ...
Tags: tax, taxes, on, loan modification, short sale, loan, modification, short, sale, foreclosure, 1099c, cancellation of debt, income, loss mitigation, mortgage, real estate, recourse, mortgage forgiveness, debt relief act, IRS, expert, advice, CPA, bankruptcy, insolvency, government, attorney, bank, lender, home, bailout