California Law on Foreclosed Homes and Taxes
California law on foreclosed homes and taxes means you may end up owing money to the IRS. Usually, when a foreclosure takes place in California, the lender will issue the borrower a Form 1099-C -- Cancellation of Debt -- that is also filed with the IRS. The form indicates the amount of debt forgiven due to foreclosure, information to calculate loss or gain and whether you will be personally responsible for taxes due on the forgiven debt.
California Foreclosure Laws
California is a title theory state, which means a deed of trust is used to secure title to the property and remains with a trustee until the loan is paid in full. Primarily, title companies serve as trustees and manage the sale of foreclosed homes. The deed of trust usually contains a power of sale clause, indicating your agreement -- by signing the deed -- for the lender to sell your property to recover the debt, if you fail to make your mortgage payments. This method used to foreclose is known as a non-judicial foreclosure, as the courts are not involved. California law on foreclosed homes includes a one-action rule. The rule prohibits a lender from pursuing a deficiency judgment after foreclosure, which would be a second action.
Tax Consequences
California law on foreclosed homes may indicate possible tax consequences if a lender has forgiven all or a portion of your debt owed, due to foreclosure, mortgage restructuring and deed in lieu of foreclosure or completion of a short sale. The IRS may consider the forgiven debt as taxable income. If Section 121 of the Internal Revenue Code (IRC) applies to your particular situation, the debt forgiven may not be taxable -- up to $250,000; $500,000 for joint returns -- if the foreclosed home has been your principal residence for at least two years.
Non-Recourse Loans
In California, a mortgage loan obtained to buy a home (purchase-money mortgage) is a non-recourse loan. If the lender forecloses on your home, the situation is dealt with as if you sold the property for the amount owed on your loan. In this case, there is no taxable cancellation of debt (COD) income, as long as you qualify under Section 121 of the IRC. With a recourse loan in California, a foreclosure could result in COD income, particularly if your mortgage loan balance exceeds the current fair market value of your property. You may qualify under a provision of the IRC Section 108, which would allow the exclusion of COD income resulting from the "discharge of indebtedness." Recourse mortgage loans in California generally include refinanced mortgages, second mortgages, home equity loans and home equity lines of credit.
Mortgage Forgiveness Debt Relief Act
California law on foreclosed homes and taxes includes mortgage forgiveness debt relief exclusions in regards to state taxes. Initially, the California act was intended to expire at the end of 2009. On April 12, 2010, the Conformity Act was passed, encompassing mortgage debt forgiven on or after January 1, 2009, and prior to January 1, 2013. It applies to all discharges received during calendar years 2007 through 2012. Depending on the year in which your debt was forgiven, the amount allowed to be excluded from your gross income varies.
Foreclosure - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/ForeclosureForeclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by ...
United States Foreclosure Laws
foreclosurelaw.orgThis site will help you research foreclosure laws for any state in the U.S. as well as The District of Columbia
Foreclosure.com Foreclosures Foreclosure Listings
www.foreclosure.comFlorida Login California Georgia TexasForeclosure listings from Foreclosure.com. We also provide pre-foreclosures, for sale by owner, bankruptcy homes and properties. We update our database daily with new ...
Foreclosuredatabank - Foreclosed Homes Foreclosures Sale
www.foreclosuredatabank.comForeclosureDataBank publishes the largest listings database of foreclosed homes for sale on the web, including auctions, short sales and bank owned homes.
Official California Legislative Information
www.leginfo.ca.govWelcome to the official site for California legislative information. This WWW site is maintained by the Legislative Counsel of California, pursuant to California law.
Foreclosure Net - Home Foreclosures, Foreclosed Homes, Free ...
www.foreclosurenet.netForeclosure listings from America's Most Trusted Foreclosure Source - Foreclosure Net. Find bank foreclosures, government foreclosed homes, hud foreclosures, and
California Home Page
www.ca.govTaxes State Agencies State Jobs Business SearchOfficial site. Government page links to state laws, elected officials, agencies and departments, and sites for cities and counties in the state.
Bank Foreclosures for Sale Foreclosure Homes for Sale Repo Homes
www.foreclosurerepos.comSearch bank foreclosures. Find listings of foreclosed homes for sale, bank repo homes, pre foreclosures and repossessed houses.
Foreclosed Homes Nationwide - Totally FREE Foreclosure Listings
www.freeforeclosuredatabase.comBank Owned Foreclosures Fannie Mae Foreclosures Florida ForeclosuresFREE Access to All the Foreclosures Our Competitors WILL Charge You For... 100% Free. Bank Owned Homes, Government Foreclosures and Even Tax Foreclosures.
Foreclosed Homes ForeclosedHomes.com
www.foreclosedhomes.comforeclosure laws by state. Learn about the laws with your state before you dive into the foreclosure market. We also have a glossary to explain the
0 komentar
Posting Komentar