Regular Contributor
ilzhoefer
Posts: 187
Registered: ‎01-28-2013
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.