Tax Consequences for Short Sales and Foreclosures.

**LVrealestateHELP** · 03-24-2011, 12:15 PM

People always want to know what the tax consequences are for people facing foreclosure or possibly short selling. This article discusses several key points and gives examples to help understand the concepts. I hope this helps educate the readers but please remember everyone's situation is unique and we highly recommend coming in to discuss all of your options before making any final decisions.

http://www.assetprotectionbook.com/t2_loan_foreclosure_short_sale_tax_liability.htm

**Greg** · 03-25-2011, 05:54 AM

Forget the tax consequences. The banks are waiting until the people get back on their feet and then they are selling the deficiency to debt collectors who go after the short sale sellers for the money the bank lost in the sale.

**LVrealestateHELP** · 03-25-2011, 09:11 PM

For that reason I would advise my clients to only sign the final docs for a short sale if the lender was giving them a full release of liability for the deficiency.