Comments on: If your investment home goes into foreclosure what liability do you have? http://www.jjrealestatebg.com/usa-real-estate/if-your-investment-home-goes-into-foreclosure-what-liability-do-you-have Pure Real Estate Sat, 31 Jul 2010 17:03:47 +0000 http://wordpress.org/?v=2.7 hourly 1 By: r2mm http://www.jjrealestatebg.com/usa-real-estate/if-your-investment-home-goes-into-foreclosure-what-liability-do-you-have/comment-page-1#comment-905 r2mm Tue, 13 Jan 2009 01:19:23 +0000 http://www.jjrealestatebg.com/usa-real-estate/if-your-investment-home-goes-into-foreclosure-what-liability-do-you-have#comment-905 Depends on how the mortgage was signed. If the investment was held in his name or as in an organization type with personal liability, or if he added a personal guarantee, then he MAY be held responsible for any shortfall on the amount due after the sheriff's sale. If he doesn't have to make up the difference from his personal finances, there will be tax consequences - the shortfall will be considered income by the IRS. Depends on how the mortgage was signed. If the investment was held in his name or as in an organization type with personal liability, or if he added a personal guarantee, then he MAY be held responsible for any shortfall on the amount due after the sheriff’s sale.

If he doesn’t have to make up the difference from his personal finances, there will be tax consequences - the shortfall will be considered income by the IRS.

]]>