Posted on Sep 18, 2011 in Roseville and Sacramento Short Sale FAQs

Many homeowner wonder what the tax consequences of completing a short sale. With a short sale, the lender will issue you a 1099-C for the difference between what the property sells for and loan amount. The amount forgiven by the bank is what you will receive on the 1099-C.

There is an opportunity to qualify for the Mortgage Debt Relief Act. You can find more information about this act on the IRS website. However, it is only scheduled to last until the end of 2012.

Because a short sale takes an average of six months, there is a small window of time to complete a short sale sooner rather than later. This will allow you to qualify for debt relief. So, act today, and contact us.

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