January 30, 2014 – The Dangers and Pitfalls Commonly Seen in Mortgage Foreclosure Settlements
Did you know the mortgage debt forgiveness relief act expired on January 1, 2014? That means if you complete a shortsale or accept a consent judgment with a waiver of deficiency you could have huge liabilities with the IRS. The law that excluded debt forgiveness on your primary residence from your income is no longer the law. To be sure, its much better to owe a bank $100,000 than to owe $35,000 to the IRS. The IRS has much more powerful weapons to force you to pay.