Question: I have a rental home refinanced and now under watered to get a short sale in california?

(Posted by: tom s on 2009-12-19 08:31:56)

I have a rental home refinanced and now under watered to get a short sale in California if a lender sends 1099 to IRS for sale's deficiency , which means I have to pay the deficiency as a income by IRS, and if I cant pay it then IRS come after me instead of the lender

Posted by: Ryan M on 2009-12-19, 08:36:54

The IRS will NEVER EVER go after the lender. The debt and the obligation is 100000% YOURS. The IRS will not even sneeze at the thought of going after the lender.

Posted by: drive_55_not on 2009-12-19, 08:44:48

" "if I cant pay it then IRS come after me instead of the lender. " " I'm not sure what you mean by that, You would owe the tax, not the lender, If you were using the property as your primary residence, then you would not be liable for the tax, however since it is a rental property, it isn't exempt.