As we’ve all heard in the news, way too much in my opinion.  Foreclosures, short-sales and deeds in leu of foreclosure are upon is in some areas.  Here we are seeing the bulk of them in Salinas, Greenfield, Marina and some Seaside … with a smattering of properties in Monterey, Pebble Beach and Pacific Grove.  Until the Mortgage Forgiveness Debt Relief Act of 2007, which was signed by President Bush on Dec. 20 the property owner not only lost all of the money in the property, suffered credit damage but they had double whamie called Tax Consequences.  This can all be quite complicated and certainly requires a tax accountant (and a good one at that) to steer the mortgagee in the right direction.  Recently The California Assn. of Realtors’ Member Legal Services team has published a revised legal article, “Taxation of Foreclosures, Deeds in Lieu of Foreclosure, and Short Sales.”

The article is detailed and thorough and may be of use for anyone facing this tragic event.  Get a cup of coffee, focus and read about it on their website… 

www.car.org, or go directly to http://www.car.org/index.php?id=Mzc3MDM= .