A second is owed on a house, and there is little or no equity to pay it. The second is a line of credit that was taken out against the house for purposes other than remodeling (money used on other things).
Is there an exception to the law
of allowing the homeowner to have no taxes
due upon forgiveness when funds were not used to remodel/purchase? Home was owned as principal residence for 15 years, but vacant last 14 months (rented three months in the middle of those 14).
any difference between it being sold on shortsale and it being foreclosed upon?
details: home purchased in 2000 with 100% proceeds from prior home and $150K in remodeling. All cash.
Mortgage 1st and 2nd taken in 2005 with money used for other things.
mortgage is $2.1m. shortSale proceeds with take out first for $1.5 ($150K of which are past dues taxes, bank costs, broker commissions etc) and $50 toward $750K owed on 2nd.
If foreclosed, likely sale: $1.5 also.