Re: Line of Credit Settlement
Posted by Jerry - Ca. on July 06, 2008 at 10:53:47:
In Reply to: Line of Credit Settlement
Posted by xman on June 30, 2008 at 10:42:18:
X-Man:
This is a loaded question with many variables depending on information not given in your post!
If your client does not fall under the recently passed law ... they will get a 1099 from the IRS and be liable for ordinary income taxation on the amount of the phantom income or amount of debt forgiven.
In California ... Non-Purchase money loans such as a Home Equity Lines of Credit (HELOC) allow for deficiency judgemants, but require judicial foreclosure to enable one. Most lenders who get wiped-off title by Senior Lienors will simply sue for a judgment on the Note, which was previouly secured by the property!
Jerry Ca.
Follow Ups:
