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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Brooklyn Girl Worried about Capitol Gains on Foreclosure & DIL Posted by njd on October 01, 2006 at 11:57 AM In Reply to: Brooklyn Girl Worried about Capitol Gains on Foreclosure & DIL posted by Madonna Maka on September 30, 2006 at 10:15 AM I haven't read the other responses, so this may have already been answered. Cap gains taxes may be applicable if you sell for more than you paid. Ordinary income taxes may be due on the amount of forgiven debt. But, each case is unique so check with a local CPA who can explain insolvency and Section 108 exemption. A short sale may or may not be applicable since the property isn't owner occupied and most mortgagees' short sale criteria requires both a demonstrated hardship (usually an involuntary hardship) and owner occupancy. You should learn its criteria before spinning your wheels unnecessarily. Perhaps you can negotiate for a hybrid short sale... such that the lender will release its security interest facilitating the sale in exchange for the remaining debt to be unsecured. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I haven't read the other responses, so this may have already : been answered. Cap gains taxes may be applicable if you sell : for more than you paid. Ordinary income taxes may be due on : the amount of forgiven debt. But, each case is unique so check : with a local CPA who can explain insolvency and Section 108 exemption. : A short sale may or may not be applicable since the property isn't owner : occupied and most mortgagees' short sale criteria requires both a demonstrated : hardship (usually an involuntary hardship) and owner occupancy. : You should learn its criteria before spinning your wheels unnecessarily. : Perhaps you can negotiate for a hybrid short sale... such that the lender : will release its security interest facilitating the sale in exchange for the remaining : debt to be unsecured. : Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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