A little known fact with Short Sales is that the government will look at any monies forgiven by the lender as income to the borrower.  Meaning that if $30,000 was forgiven by the lender to sell the property, it would be looked at by the IRS as regular income, thus putting an additional burden on the borrower that has had to short sell his property in the first place due to insolvency.

 

          HOWEVER, it is urged that when borrowers receive a notification from the IRS that they have incurred this debt, they should immediately contact the IRS and negotiate an agreement regarding the payment of this debt.  The IRS, faced with an increasing number of these situations, has been lenient in their dealings with borrowers. Additionally, there is a move afoot to reexamine this ruling.   But today, this rule is in place.

 

Schaller Family Real Estate
Kane, Aimee, Lil or Don Schaller
www.Alltruckeehomes.com
800-660-0903
Dickson Realty, Truckee
Owners