Upside Down Mortgage

Mortgage Relief Act

Question: What is mortgage relief act? How will this effect a short sell on my house,I owe 160,000 house valued at?

57,000 because of foundation failure. We lived there 22 years,I had bad wreck cant work ever again,so we sold house for 60,000 Will we have to count difference on our IRS? I draw disability and I have know one to ask we cant afford 100,000 as income we are broke please help

Answer: You likely won't have to pay taxes on it. The IRS speaks directly to that issue here, the debt is forgiven:

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

http://www.thhf.org/blog/2008/10/mortgage-forgiveness-debt-relief-act/

J. Williams (shadowstats.com): This is a Monetary Inflation

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!