Debt Forgiveness for a Primary Residence

Tax break

A 2007 law exempts from tax up to $2 million of debt forgiven in a foreclosure or similar proceeding for a primary residence, according to the Internal Revenue Service. The tax break extends to 2012.

The lender's willingness to negotiate varies and depends on the loan balance, condition of the property, location and resale opportunities.

Short sales or deeds-in-lieu of foreclosures are apparently considered the same as a foreclosure on your credit score.

A foreclosure remains on a credit report for seven years. Credit scores can begin to rebound in as little as 2 years if bills are paid on time, according to FICO.

Please let me know if there is anything that I can answer for you in regards to shortsales that you may need to sell, or would like to buy.

Experience in shortsales since 2001.

Warmly,

Stephanie LeFew

Tampa Realtor

Tampa Home Buy Realty

www.TampaHomeBuy.com

813-624-3332 cell

stephanie@tampahomebuy.com