I have a short sale coming up I have the following question. Thank you in advance for answering my questions.

1.I have 80/20 mortgage, which was refinanced in CA, My current balance for 289K and 73K ; The offer I submitted to the lenders for 180K; there would be a balance of 181K

2.My first mortg is a non-recourse and second is a recourse. Do I get a 1099C for the balance

3. Do I get any help from Mort Debt forgivenss 2007 law. Do I get any tax relief from CA


Thanks for your response.

You probably WILL get a Form 1099C (as well as a Form 1099A).

You are likely eligible to file Form 982 under the Mortgage Forgiveness Debt Relief Act of 2007.

As for getting any tax relief from California, it does NOT look like it. The link below provides for tax relief for 2007 and 2008, but nothing in 2009 and beyond.

Mortgage Forgiveness Debt Relief Law (http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.shtml)