I have a client...and VERY good friend, who I sold her home as a short sale last year. I am MORE than discouraged at this point in the entire process...not at the banks and the short sale process...but NOW after the sale is complete and she has moved on. Let me tell you the story and if you're still reading after that I would like as much advice as I can get.
She was living in a house here in Parker with her 3 kids and husband. She ended up getting a divorce and he moved to Berthoud. She didn't want her kids to be that far from their dad so they moved up there and bought a house as well. She knew she couldn't sell because the market was so bad so she found renters, but still had to contribute monthly to satisfy the mortgage payment...that of which she had NEVER been late. She had become exhausted with that so decided to sell short sale. The bank process was long, but to be expected and the negotiator was great. The process finally came to close and she ended up selling it for about $50K less than what she owed. Now she emails me after going to H&R Block with a forgiven debt of $50k, and she had capital gains on it too, so her Adjusted Gross Income was calculated all the way up to $146k...now owing the IRS $20,000.
My question is...what is the point??? If we are putting our clients in a position like this where they now owe $20,000, and NOW knowing that some banks will report it as a foreclosure anyways...what's the point? And is there ANYTHING she can do...for a single mother of 3, who now, this has just detroyed her? I feel at fault and would like to help her out as much as possible...ANY advice will be greatly appreciated. (Except for telling me that I should've told her to consult a tax advisor, which I did)
Thank you, ~Trisha~
No comments:
Post a Comment