2 Foreclosures & Ch 7 & taxes in 2009

[Trixie007]

Hi, I'm a bit confused from different posts I've read, would someone mind clarifying for me?

1)primary residence will likely go to foreclosure sale in mid-Feb
2)second home foreclosure sale in mid-Mar
3)looks like we are filing ch 7 early April

I know the mortgage deficiencies will be wiped out in the BK, but will we have to pay taxes on deficiencies since the foreclosures will happen prior to the BK?

Thanks!

[Trixie007]

Bump

Sorry, but I just searched again and can't find the answer. Will we have to pay taxes on the deficiencies of the second mortgages if the foreclosures are completed before we file?

Thanks!

[Tbornetun]

No, the second mortgages will become unsecured debt and will be discharged with the bankruptcy. You will not have to pay taxes on those debts.