Upside Down Mortgages
Do you owe more on your mortgage than your home is worth?
Many Americans have found themselves in the terrible position of owing more money on their mortgage than the current value of their home.
At some point, it doesn't make sense to keep throwing good money away for bad.
At some point, it does make good sense to reduce your losses and cut them.
Disposing of your property incorrectly can lead to disastrous tax problems and even ruin your credit.
You may even have to pay income tax on the lender's losses.
Late payment, notice of default, foreclosure, deed in lieu of foreclosure and/or a short sale...all of these items will seriously affect your credit and hamper your ability to secure a loan on a new property.
The Internal Revenue Service requires every lender that cancels, forgives, or discharges any obligation over $600.00 to file a 1099-C with the previous borrower as well as with the IRS. The amount of debt cancelled or discharged is generally considered ordinary income. A new law may protect you from Debt Relief under certain circumstances.
When your property is foreclosed or sold for less than the amount owed, you are receiving Debt Relief. The lender's loss is considered taxable income and if the lender should lose $50,000, for example, you will receive a 1099 for $50,000. If your tax bracket is 32%, you will owe the Government $16,000.00 above your existing tax obligation for the year. This is not applicable for certain loans where the property is your primary residence and if you are subject to the Debt Relief Forgiveness Act of 2007. This tax is NOT forgiven on Investment Properties, Second Homes and Cash- out Refinances!
Wilshire Holding Group, Inc. has a proven solution to your problem, a way to dispose of that over encumbered property without incurring tax liability and minimizing any negative credit.
For more information, please visit our website at http://realtycrisis.com/ or calls us at (877) 94-HELPME
info@wilshireholding.com
Many Americans have found themselves in the terrible position of owing more money on their mortgage than the current value of their home.
At some point, it doesn't make sense to keep throwing good money away for bad.
At some point, it does make good sense to reduce your losses and cut them.
Disposing of your property incorrectly can lead to disastrous tax problems and even ruin your credit.
You may even have to pay income tax on the lender's losses.
Late payment, notice of default, foreclosure, deed in lieu of foreclosure and/or a short sale...all of these items will seriously affect your credit and hamper your ability to secure a loan on a new property.
The Internal Revenue Service requires every lender that cancels, forgives, or discharges any obligation over $600.00 to file a 1099-C with the previous borrower as well as with the IRS. The amount of debt cancelled or discharged is generally considered ordinary income. A new law may protect you from Debt Relief under certain circumstances.
When your property is foreclosed or sold for less than the amount owed, you are receiving Debt Relief. The lender's loss is considered taxable income and if the lender should lose $50,000, for example, you will receive a 1099 for $50,000. If your tax bracket is 32%, you will owe the Government $16,000.00 above your existing tax obligation for the year. This is not applicable for certain loans where the property is your primary residence and if you are subject to the Debt Relief Forgiveness Act of 2007. This tax is NOT forgiven on Investment Properties, Second Homes and Cash- out Refinances!
Wilshire Holding Group, Inc. has a proven solution to your problem, a way to dispose of that over encumbered property without incurring tax liability and minimizing any negative credit.
For more information, please visit our website at http://realtycrisis.com/ or calls us at (877) 94-HELPME
info@wilshireholding.com
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