Legal Question in Real Estate Law in Utah

FHA Forecosure

FHA Rental was damaged by renters. Can't afford repairs. Home will not sell for what is owed. Not my primary residents so FHA rules will not allow a short sale. The Home is in Utah. I have equity in my primary refinance but that home is Homesteaded.

Q1. Will the IRS ask for taxes on any amount that FHA mortgage insurance pays the lender (that the lender does not recoup in the sale of the house)?

Q2. Do I need a lawyer to protect my assets (other then the house that will be foreclosed on).


Asked on 6/02/04, 6:30 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: FHA Forecosure

The IRS can assess taxes on the unpaid loan, but often do not. That is a risk you will have to take. However, if the rental goes into foreclosure, you may be liable for a deficiency judgment which can attach to your residence. A lawyer can help avoid losing your home. Call for a free consultation.

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Answered on 6/02/04, 8:39 pm


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