Posted on January 13, 2009 - by admin
Rental going into foreclosure - will they come after my wages or will I be taxed?
coral
We have a rental property that we can no longer afford payments. If it goes into foreclosure, will they come after our wages or make us do a 1099? We do not want to do a short sale.
Bulgarian Properties
We have a rental property that we can no longer afford payments. If it goes into foreclosure, will they come after our wages or make us do a 1099? We do not want to do a short sale.
Bulgarian Properties
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January 13, 2009
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1099 at the end of the year for the diference of what you owe and what the bank forecloses on.
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January 14, 2009
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You can do the 1099 for the difference between the foreclosure and resale amount versus what you owe, but the difference can be substantial because foreclosure is expensive. If the amount is a substantial difference, they can still pursue you in court and attach your wages as they will want a lien against you for the remaining balance. Also, this will wreck your credit, so try to get the house sold if possible and avoid the foreclosure on your CBR and the foreclosure costs.