Posted by Marcia on November 06, 2006 at 13:10:37:
The contract with the lender that says the lender will not seek a deficiency judgement; is that in the PA or do you use a different sort of contract? Would you mind giving some detail of what sort of contract this would be if not the PA? Thanks so much!
short sale / 1099 and deficiency judgment - Posted by anni
Posted by anni on November 03, 2006 at 13:18:35:
I READ IN A SHORT SALE ARTICAL THAT WHEN DEALING WITH THE LENDER MAKE SURE WHEN THEY ACCEPT THE OFFER THEY SIGN A DEFICIENCY JUDGEMENT, SO THEY CAN NOT COME BACK FOR ANY LOSSES. I SPOKE TO A LENDER WHO SAID THAT THE DEFICIENCY JUDGEMENT IS FOR THE LENDER TO SIGN IF THEY CHOOSE TO COLLECT ON THE DIFFERENCE. SO I AM CONFUSED. I ALSO READ THAT ON THE 1099 SOME OF THE LARGER LENDERS SUCH AS COUNTRYWIDE AND WELL FARGO USEALLY DO NOT FILE A 1099. IS THERE ANYTHING THAT CAN PROTECT THE HOMEOWNER FROM THE LENDERS COMING AFTER THEM AFTER THE SHORT SALE?
Re: short sale / 1099 and deficiency judgment - Posted by Max-Va
Posted by Max-Va on November 03, 2006 at 13:38:46:
The homeowner recieving a 1099 is almost a given unless some mistake is made. Recieving a 1099 is not necessarily a taxable event. Short sales are usually on preforeclosures, the seller is usually insolvent at the time.
My contract with the lender says that the lender will not seek a deficiency judgement.