Taxes May Be Due on Mortgage Settlement Checks. Slap!

Double Whammy: Mortgage Settlement Payments Will Be Taxed (via Credit.com)

If you are one of the more than 1.8 million people who have received a check from the Independent Foreclosure Review (IFR) settlement — or if you have one coming — don’t spend it all in one place. These payments are considered taxable income for state and federal income tax purposes and come…

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3 thoughts on “Taxes May Be Due on Mortgage Settlement Checks. Slap!”

  1. slap? free money of course you pay the taxes. Don’t go into debt you can’t handle and be responsible for. Unreal feel bad for these people who lived beyond their means or got greedy with multiple homes and mortgages. Then they run up their credit cards by living off them for years and have no intention of paying them back.
    But the real bad guys are the credit counseling companies or debt settlement right? Come on. Most of these people are worse and just trying to weasel out of living beyond their means.
    The best part is people like you profit and enable them and make them feel like they are victim.

    • Your comment seems off base.

      The National Mortgage Settlement Fund was to compensate people who had their homes improperly foreclosed on and to provide other relief.

      “The agreement settles state and federal investigations finding that the country’s five largest mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. Both of these practices violate the law.”

      How does that have anything to do with greedy homeowners or debt relief companies?

      See http://www.nationalmortgagesettlement.com to really learn what this was all about.

    • Did you mean to comment on a different article or something? Your response comes off as nonsensical.

      “Don’t go into debt you can’t handle and be responsible for.”

      The banks are paying pennies on the dollar for fraudulent and unfair foreclosure practices that infringed upon the due process owed to homeowners. I fail to see how having to pay taxes on money that is “just” compensation for illegal behavior on behalf of the banks is at all related to not handling and being responsible for debt.


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