If you’re facing foreclosure, 2012 will be the last your to do so without tax consequences (provided the lender completely releases the debt).
The rules change January 1st, 2013. Any amount that is ultimately forgiven by the lender on a primary residence, either via short sale or foreclosure, will be taxable at a federal level.
However, declaring bankruptcy can trump the new law. To discuss your options in 2012, pick up the phone and call Neil at (816) 561-1818 today!