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- your husband will not be impacted directly. that is the good news.
- you will be impacted and if you have income you may be expected to pay. You might consider going to look at the property and see if salvaging it with your brother is an option and renting it out.
- Florida state tax law may not be the same as California so call a tax professional there regarding short sale
- the property not being your primary residence can hurt tax wise possibly both fed and state so ask your tax professional both here and there.
My brother had really bad credit and had asked me to be on the loan with him (not sure if this is considered cosigning). I’m on the loan as primary and he’s secondary. This home is located in Florida and I live in California for the last 5 years. This is his primary residence. I make no payments to any of the mortgages nor do I claim it on my yearly taxes. He’s business is failing miserably and he can’t make future payments. He’s been struggling to make ends meet. Now he’s considering short sale and wasn’t sure if it’s an option. My concern is, can he qualify for a short sale? Will the lender consider my income in this decision. Well, I just got married this year…so not sure if my husband’s income is included. Also, if he does a short sale, will this affect my credit? And most importantly, will either one of us be back taxed on this short sale or is this debt forgiven? This will be the last time, I’m putting my credit out there to help anyone. This has been truly a nightmare.
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