Will I owe taxes if I settle on a2nd mortgage for about 10% of what is owed?

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Will I owe taxes if I settle on a2nd mortgage for about 10% of what is owed?

I turned over my home to the 1st mortgagee about 3 years ago but still owe on the 2nd mortgage. They offered a settlement of $11,000 out of a $100,000 loan. Will I have to pay taxes on the $90,000?

Asked on February 29, 2012 under Real Estate Law, California

Answers:


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