Taxes due on foreclosed home

[sandrat]

What is the name of your state? New Mexico
We had a home in Colorado (we have been in NM for the last 2 years) that we signed over the deed in lieu of foreclosure and they relieved us of the deficiency. The amount owed was $99,000 and they sold the home for $50,000. We are now told we owe $11,000 in taxes because we have to pay taxes on the difference. If this is correct what do we do now. I couldn't pay the house payment much less come up with $11,000.

 

[seniorjudge]

I don't know the answer to your tax question, but this is not a foreclosed home.

You sold it cheap.

 

[sandrat]

We didn't sell it the mortgage company did. If it isn't foreclosed how come it shows as repossesed on my credit?

 

[seniorjudge]

We didn't sell it the mortgage company did. If it isn't foreclosed how come it shows as repossesed on my credit?

It was, as you said, repossessed, not foreclosed.