Southern California Bankruptcy Law Blog

Category Archives: Short Sales

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The Treatment Of A Second Mortgage After A Foreclosure Sale

Posted in Foreclosure, Short Sales, Uncategorized

I recently had an interesting email exchange with a couple of fellow bankruptcy attorneys on the subject of foreclosure.  The specific question we discussed was whether a second mortgage holder’s claim is extinguished after the holder of the first mortgage conducts a foreclosure sale. The question is complicated by the fact that there are three… Continue Reading

Tax Debts After Foreclosure

Posted in Foreclosure, Home Loans, Short Sales

I.          The Basic Idea:  Cancellation Of Debt Income Let’s first understand the basic idea with a simple non-real estate example.  Suppose you owed me $100,000.  I’m such a nice guy that I forgive the debt.  It turns out that this becomes a mixed blessing because now the IRS and the Franchise Tax Board (FTB) both… Continue Reading