Upinsmoke2010

Tragic

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I got sick and can't work. Mortgage got behind so instead of foreclosure the mortgage company offered me to surrender the house free and clear.

They did not inform me of the repurcussions. I just got a tax form stating that on the 59,000 mortgage that they gave fair market value of 14,000. Now it shows I owe taxes on the rest. I am out of work with no help. I can't do anything but fret over this. I got all my debts to try to prove I was broke but if my bills owed at that time aren't enough then what happens?

I couldn't afford the place and tried selling it but no luck. Now I have to pay for "forgiveness of debt" with money I don't have??

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Thank you. Very stressed out over this. Ill get the form.

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What a very sad situation.   Are you receiving disability?    Any loan forgiveness is considered income by the IRS and you owe taxes.

 

Look over the bankrupty section here and see if you can qualify.   

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Definitely read the IRS insolvency rules and seek help if you need it.  You might be okay.

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