Tuesday, May 8, 2007

They get you coming and going.

For homeowners seriously delinquent on their mortgages & hoping for some relief, the IRS has bad news: If your lender agrees to modify your loan & forgive any part of your debt, you could owe federal income taxes on the amount forgiven.This is especially bad news for the growing numbers of credit-impaired sub-prime borrowers who find themselves "upside down" in the current market: They owe more on their mortgages than the value of their houses, thanks to noxious combinations of zero down payments, declining property values & hefty payment increases they can't afford.

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