By startingpoint March 13, 2014

Any balance shortfall on your mortgage will likely be written off as a loss by your lender. Because of this, your lenders may also send you a “1099″ for any amount forgiven. Due to the Mortgage Debt Relief Act of 2007, you are NOT required to pay taxes on this money if you short sale your primary residence prior to 2012. Consult your accountant with any other questions regarding this.