Tempe Realtor, Dean Ouellette, did a great little interview with a lawyer about whether you can be taxed on the debt forgiven in a short sale. The answer will scare a lot of people.

The take away for Arizona real estate investors, “But if it is a non-owner occupied residence that was purchased to be a non-owner occupied residence, more than likely, they’ll have tax liability.”

Watch all of Dean’s videos!

Real estate agents are NOT a reliable source of information about this stuff.

You should contact a lawyer like the gentlemen in the videos to get good information that applies to your personal situation before deciding to go with a short sale versus a foreclosure versus whatever in Arizona.