Dieppa Law BlogMortgage Debt
When is It Time to Walk Away from Your Home?
I advise many clients who are at least 50% underwater (their home is worth 50% of less than the outstanding mortgage debt) to consider a short sale. One major factor in that analysis is the taxability of the canceled debt. Canceled debt is normally considered taxable income, but the Mortgage Debt Relief Act of 2007 [...]