URGENT tax law question in desperate need of immediate answer time restrictive HELP!!

[Miller]

I currently own 2 homes in Riverside county California.* I owned the first house and leased it out in Feb. 2008. We moved to the new location then.* However due to very unforseen circumstances, the first home went into default on Feb. 24, 2009.* Our new mortgage on that porperty started in Oct. 2005.* They have set a sale date for June 16, 2009.* We are currently living in the new property and have the same mort. co. Countrywide.* MY QUESTION:* The note was insured, but they investigated the fraud content on the note and this may have voided the mort. insurance and of course no one will give me any answers.* We are trying to short sale this porperty for the 3rd time, but I am told that it is not my primary address and we may not be obsolved of the tax liability.* I have been informed that if it forecloses that we may also have a tax liability. Either way we are screwed!!! I am told to file a chaprter 7 bankruptcy to protect ourselves from all of this, but no one can say for sure when to do this. The only they say is if we do it by this next Mon. June 2, 2009 that they can assure us that we will be protected (They believe)* I have wasted numerous hours over the past 2 1/2 years to to right this wrong that was done to us. I have tried to give them this house back and tried to sell it. They can have it, but we should not have to be made a further victim to these lenders in addition to already being victim to the preditory lending that put us hear and the forged documents that go with this.* HELP, Please help. Are we protected if we file a chapter 7 or are we getting bad advice to be scammed again. Can they 1099 us even though we were there at the residence for over 2 years after the refi. can we be tax liable after foreclosure.* Someone has to know these answers or at least someone who does.* Please Help. Bless you and thank you

[annjd]

Hi--we normally do not give any tax specific advice on this site; you may check with the IRS directly; or your accountant; or the H & R Block web site for 20 dollars: HR Block Tax Advisor link --

[annjd]

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