Posted on

Mortgage Debt Forgiveness

Mortgage Debt Forgiveness

If your mortgage debt is partly or entirely forgiven during tax years 2007 – 2013, you may be able to claim special tax relief and exclude the debt forgiveness income.

Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence. The limit is $1 million for a married person filing a separate return. Continue reading “Mortgage Debt Forgiveness”
Posted on

Deficiency Judgments, Foreclosures & Short Sales

Here’s one of the more recent questions from the Washington Association of REALTORS® legal hotline.  The deficiency judgment seems to be a hot topic again lately.. and another reason why you should seek an experienced agent for your short sale situation. QUESTION:
When can a lender take a deficiency judgment against a seller and, conversely, when is a lender prohibited from taking a deficiency judgment? Continue reading “Deficiency Judgments, Foreclosures & Short Sales”