If a repossession auction does not bring in enough to satisfy the 1st and 2nd mortgage, what happens to the outstanding balance? Property taxes are current.
2007-09-06 04:59:49 · 2 answers · asked by Caped_Crusader 2 in Business & Finance ➔ Renting & Real Estate
One of two things, either you will be taken to court and have a judgment put against you making you responsible for the amount, or less likely they will write it off, which will show up as a taxable bonus of income to you and you will owe the taxes on the difference, (a little over 30% federal, and what ever you state and local percentage is) Or since it is two mortgages, could be both
2007-09-06 10:45:53 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
Same as every other state. It is a deficency balance and the borrower is responsible.
2007-09-06 12:03:02 · answer #2 · answered by wizjp 7 · 0⤊ 0⤋