10.12.08
Short Sales and Foreclosure Education
The Minnesota Home Ownership Center put out new Fact Sheets of Interest to Title Insurers, Closers, and anyone dealing with foreclosures.
Here is an excerpt from one fact sheet
“…In other words, debt forgiveness (short sale, deed-in-lieu, permanent loan
modification, etc) still counts as income and lenders are required to issue
Form 1099-C to the homeowner whose debt was forgiven. It is then the
taxpayer’s burden to tell the IRS that they qualify for an exception to paying
tax on this income. To do so, they need to fill out a special form (Form 982),…
A good explanation for a difficult time.
The Minnesota Home Ownership Center oversees a statewide network of non-profit Mortgage Support Advisors that offer free and confidential services to struggling home owners. For more information, visit hocmn.org or call 651-659-9336 (866-462-6466 outside of the metro area).