From:  Selma
Date:  Fri, 16 Nov 2007

Thanks for your article on short sale v. foreclosure. What about a deed in lieu of foreclosure?

Thank you, Selma

Answer

Date:  27 Nov 2007

Hello Selma,

A deed in lieu of foreclosure is taxed the same as a foreclosure. The tax law focuses on settlement of debt by a transfer of property.

Good luck!
Mike Gray

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