Comments on: Special Situation: Lehman Subprime Unit Shutdown http://www.nakedcapitalism.com/2007/08/special-situation-lehman-subprime-unit.html Mon, 23 Nov 2009 13:08:50 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2007/08/special-situation-lehman-subprime-unit.html#comment-503 Anonymous Thu, 23 Aug 2007 22:33:00 +0000 http://www.nakedcapitalism.com/2007/08/special-situation-lehman-subprime-unit-shutdown/#comment-503 I'm curious if you can explain this to me.<br/><br/>I read somewhere yesterday that BoA foreclosed on a couple and forgave their loan. The IRS viewed it as taxable income and the couple owed the IRS almost $30K. The bank picked the property up at auction for $1 after no one bid on it.<br/><br/>Question: The bank now has a property on their books but did they lose money (if they financed it) or is it viewed as an asset (if the mortgage was sold)? I’m curious if you can explain this to me.

I read somewhere yesterday that BoA foreclosed on a couple and forgave their loan. The IRS viewed it as taxable income and the couple owed the IRS almost $30K. The bank picked the property up at auction for $1 after no one bid on it.

Question: The bank now has a property on their books but did they lose money (if they financed it) or is it viewed as an asset (if the mortgage was sold)?

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