If you treat a foreclosure as an exchange. Do you use the fair market value to calculate losses or out of pocket expenses minus the construction loan? For example
Const. loan $250,000.00
Actual cost $300,000.00
FMV less commission $325,000.00
I guess this could used the other way too. Short sales, upside down mortgages etc.
Last edited by doubleddd2360 : 02-08-2010 at 06:16 PM.
Reason: wanted to show example