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If I let a mortgage go into forclosure will the tax debt relief act signed in 2007 help me?
Question : If I let a mortgage go into forclosure will the tax debt relief act signed in 2007 help me?
This was my principle residents for three years. The original loan was for 84,000. I refinanced and it came up to 94,000. I refinanced again and it came up to 102,000. I know probably it might cover only the original loan of 84,000. Will the relief act not the bailout help me? How much phantom tax would I have to pay on the remaining 18,000? Thanks for your answers!
debt relief loans
Best answer:
Answer by george 2
no and figure it out. all you have to do is look at last years tax book in the tax tables and look up 18000. that will give you an idea as to what you will need to pay.
The best thing to do is AVOID foreclosure. If you are having trouble affording your mortgage, there are a few options you should try:
1. Short Sale
2. Loan Modification
Since the Debt Relief Act passed in 2007 any homeowner that sells their primary residence via short sale is not responsible for tax implications or loss incured by the lender.
A loan modification may help make the loan affordable, but you will usually have to pay a fee for this service. Try http://www.NationalShortSaleOffice.com. They are one of the less expensive companies out there and are reputable.
Good luck!