It’s difficult to make real estate predictions for Los Angeles real estate, but expect more short sales and foreclosures in 2011. 

I received this Short Sale Question and Answer, from Phil Atwan who is Vice President of Innovative Financial Resources Inc
Q. Will I have any tax implications if I Short Sale my property?

Q.  If I sold my home at a loss and the remaining loan is forgiven, does this constitute a                  cancellation of debt?

Q.  Does the Mortgage Forgiveness Debt Relief Act apply to debt incurred to refinance a home?

Q.  The IRS and the State of California have addressed these concerns. We recommend that each individual consult with their Accountant or Attorney to obtain advice as to how the following information will impact their tax liability.

A.  The IRS Speaks:

A.  The California Franchise Tax Board Speaks:

The information provided is for informational purposes only.  IFR and Phyllis Harb recommend that each individual consult with their CPA and/or attorney as to how this can affect their individual situation.

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Foreclosure Alternatives for distressed homeowners

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