Foreclosure and Your Taxes

  Question:  We bought our home in a new Gilbert subdivision six years ago.  Although there has been some appreciation lately, our home is worth only $260,000.  We still owe $380,000 on the mortgage.  After my husband lost his job last year, we finally had to stop making payments, and the foreclosure occurred this February.…

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Deed Home to Yourself and Spouse

  Question:  Next month, my husband and I are scheduled to close escrow on a home in Chandler.  We have no living children, and we are both elderly,  Due to my husband’s bad credit, however, the mortgage loan and the title of the home will be in my name only.  If something were to happen…

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Adios to Mortgage Forgiveness Tax Relief Act ("Act")

The general IRS rule is that any forgiveness of debt will be taxable. In response to the housing disaster of the mid-2000’s, the Act was passed by Congress in 2007 to give relief to taxpayers who had debt forgiveness as the result of either a foreclosure or a short sale. The Act was subsequently extended…

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