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Orlando Foreclosure Attorney
Orlando, Florida 32801
Foreclosure Attorney Michael Stites
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Debt Liability and Taxes You May Owe
after the Foreclosure
Foreclosure is the process where the a lender gets permission to auction off the borrower’s home for not paying their mortgage. Some people give up and move out quickly due to fear of being evicted while others choose to stay and fight. Both kinds of people usually want to put the foreclosure as far behind them as possible. As soon as the bank auctions off the home you both go your separate ways, right? Not always.
If the property sells for less than what you still owed, the leftover balance is called the deficiency. The foreclosing party can either file a law suit to get a deficiency judgment placed against you or they can write the deficiency off as forgiven debt. The IRS labels forgiven debt as taxable income and you may be required to pay it. Here you can learn how this may affect you.
Section 3a: What Happens When Your Home Auctions For Less Than You Owe – Article Coming later 2015
If the lender manages to foreclose on your home when the property value has dropped, they may get less money for the home than what you still owe them.
Attorney Home > Foreclosure Research > Debt Waivers and Tax Liability After Foreclosure
Section 3b: Do You Owe Taxes When the Bank Writes Off for Your Unsecured Debt? – Article Coming later 2015!
Taxes Associated with Deficiency Waivers and Forgiven Debt – Article Coming later 2015!
Money You May Still Owe After Foreclosure
Taxes You May be Liable for if Your Lender Chooses to Forgive Leftover Debt
