If there is a non-judicial foreclosure, I have two tax
Backgound: funds for 1st and 2nd (line of credit), both at same bank, were acquired in a 1st and 2nd years after purchase, and used other than for house.
Questions about short sale and non-judicial foreclosure
1. If spouse is on 1st and not 2nd as co-borrower, and it is the 2nd that is deficient, does she have any tax implications?
2. If she's on the deed (unsure), any difference?
3. If yes, she's liable for deficiency, and it's during separation while they are filing together, and husband has sufficient NOL's, does 100% go against his NOLs, or 50/50 if they start filing separately AFTER the sale.
3a. Any difference if start filing separately before the sale.
NOTE: she filed for divorce dec 29, 2011. 2011 returns are not done.