Comments on: Facing Foreclosure and the Value of the Property is Less than What You Owe? http://www.atlantarealestateforum.com/facing-foreclosure-and-the-value-of-the-property-is-less-than-what-you-owe-17187/ Atlanta real estate, new home builders, developers, communities and market trends blog in Atlanta, GA Wed, 23 May 2012 09:56:13 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Carol M. Flammer http://www.atlantarealestateforum.com/facing-foreclosure-and-the-value-of-the-property-is-less-than-what-you-owe-17187/comment-page-1/#comment-66627 Carol M. Flammer Sat, 14 Nov 2009 19:07:07 +0000 http://www.atlantarealestateforum.com/?p=17187#comment-66627 Thanks for this information Sherry. The http://www.cpde.com site has great information. It seems that this credential should be an important factor to consider when choosing a Realtor to help with foreclosure related challenges. Thanks for this information Sherry. The http://www.cpde.com site has great information. It seems that this credential should be an important factor to consider when choosing a Realtor to help with foreclosure related challenges.

]]> By: Sherry Davidson http://www.atlantarealestateforum.com/facing-foreclosure-and-the-value-of-the-property-is-less-than-what-you-owe-17187/comment-page-1/#comment-66626 Sherry Davidson Sat, 14 Nov 2009 17:57:56 +0000 http://www.atlantarealestateforum.com/?p=17187#comment-66626 A law passed in December of 2007 that allows homeowners to avoid recognizing income on the debt forgiven on their principal residence. The primary mortgage, 2nd mortgage and even home equity loan amounts forgiven will not be taxed if the money was used to purchase or improve your personal residence. If you used some of the money to pay for other things, this amount will be subject to tax. Investment property or second homes do not qualify for the benefit. You will receive a 1099 for any debt forgiveness and you will need to show the income on the correct IRS form but you can show the amount that should not be taxed. For more information on preventing foreclosures, check out the certified distressed property expert website at http://www.cdpe.com. A law passed in December of 2007 that allows homeowners to avoid recognizing income on the debt forgiven on their principal residence. The primary mortgage, 2nd mortgage and even home equity loan amounts forgiven will not be taxed if the money was used to purchase or improve your personal residence. If you used some of the money to pay for other things, this amount will be subject to tax.

Investment property or second homes do not qualify for the benefit. You will receive a 1099 for any debt forgiveness and you will need to show the income on the correct IRS form but you can show the amount that should not be taxed.

For more information on preventing foreclosures, check out the certified distressed property expert website at http://www.cdpe.com.

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