The Credit Counseling Professionals

11/10/09

Did You Know ...?

...if you're facing foreclosure and considering a 'short sale' (selling the property for less than you owe the bank, with the lender writing off the rest) - you might owe taxes on the 'forgiven' amount. You should be aware that you may receive a form 1099-C for the amount of the lender's losses. This is considered loan forgiveness in the eyes of the IRS. When considering a short sale, be sure to consult tax/legal counsel to understand the ramifications.

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