They will be now be charged according to their tax bracket federal taxes on the amount that the bank forgives.

Directly from Fannie Mae's (Federal National Mortgage Association) latest Form 10-Q is this: "Neighborhood stabilization is a core principle in our approach to managing our REO inventory.

At best as noted above they are not that effective, sounds like at the federal level and consequently state level ambiguous and vague, “unknown”.

Third, they mentioned federal legislation that requires banks to have cash on hand of 7-10 times the amount of bad loans they hold or risk being shut down.

Since the lien is still in place, I would think that this is not a taxable event to this man.

Interest would be reported on line 8a of your Federal 1040.

Just received my assesment, taxable valuation and property classification notice for 2012. although the taxable value has decreased on all houses, the tax bill actually increased by average of $700 for the year.I wrote a letter to the assessor's office last year and the wanted me to pay $25 per case and go to court at the state capital. i dont have the time nor the experience to go that route.Is there a way to fight this legaly?

And you will owe state and federal taxes and penalties on the additional income.

The remainder would be a taxable loss by the LLC.Is this ok?

Combine the federal tax credits, state tax credits, state incentives, potential utility incentives, and a high cost of power and you might just find that your investment pays back pretty quickly.