Short sale tax consequences - Posted by Winston Holmes

import · October 13, 2009, 7:24pm

Posted by Philip on October 19, 2009 at 10:01:45:

lets say the purchase price of the house is 100,000
and the short sale price is 55,000 can the bank legally give a 1099 to the original purchaser and he has to pay income tax on the deficiency.

import · October 13, 2009, 7:24pm

Posted by Winston Holmes on October 13, 2009 at 19:24:58:

Hello;
I had a question on short sales, do you know if a law was passed about 2 years ago preventing the banks from filing a lien against you for the deficiency, so there would be no 1099 filed with the IRS for phantom income.

Appreciate any information.