My mom is having a short sell that might close this year for one of her condos. However, she has been unemployed for a while and can no longer afford her second condo. So she plans to short sell the second condo next year, because she is still not finding work at all. of course, as soon as the first condo sells , she will move to the second one as her primary residence and try to short sell that one too.
Now my question is how this may impact her tax situation? both condos where bought for 500K and there still about 425K owned (divide by two for each). Could she be better off just going to bankruptcy instead of trying to do all this short sales? And I am worry about the IRS trying to collect on her for dismissal of the loan money. And obviously we cant really afford an attorney. So here we are in yahoo trying to see what might be the best option.
PS: Both loans for condos are the original loans and they have piggy back loans attached to them. if u need any more info just let me know and I will post. Thank you in advance for any suggestions.