mortgage modification question

[obie]

What is the name of your state?NY

I applied for a mortgage mod thru the loss mitigation dept of my mortgage co, its an FHA. I was told I needed to pay all legal fees since the loan is actually in foreclosure, which I understand, but I was told that the difference between what my loan bal is now and what the new bal will be after the modification goes in effect (the arrears) is taxed by NY state to the tune of 75% which comes to 18,000! I just cant believe the state taxes the difference that much. Is this correct? I need to pay that upfront they say (which I cant)

 

[obie]

NY

Any one know?

 

[HomeGuru]

What is the name of your state?NY

I applied for a mortgage mod thru the loss mitigation dept of my mortgage co, its an FHA. I was told I needed to pay all legal fees since the loan is actually in foreclosure, which I understand, but I was told that the difference between what my loan bal is now and what the new bal will be after the modification goes in effect (the arrears) is taxed by NY state to the tune of 75% which comes to 18,000! I just cant believe the state taxes the difference that much. Is this correct? I need to pay that upfront they say (which I cant)

**A: and when you contacted the NY state income tax department, what did those fine folks tell you?