Reply
Regular Contributor
Posts: 208
Registered: ‎01-28-2013
0

Short sale deficiency amount question

Hello:

 

If one has completed a SS, and is liable for the deficiency amount, how is that taxed? Is it taxed as income and ups your tax bracket for that year or do you owe that amount back?

 

Also, when a foreclosure is completed, is one held accountable for the outstanding amount of the loan?

 

Thanks in advance.

 

Highlighted
Frequent Contributor
Posts: 320
Registered: ‎07-08-2012
0

Re: Short sale deficiency amount question

Depends on the situation and state.

Certain states allow for a deficient judgement and others dont with a foreclosure.

Talk To a tax advisor for the short sale tax questions but I believe if your held liable then I wouldn't understand why there would be a tax liability if you owe the money. If it was "forgiven" then sure. But even in that case the mortgage debt forgiveness relief act may apply.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.