1099 On Short Sale

Comments(8)

• 
  bnorton13th August, 2004

  A 1099 you really don't have much control over. However, I always make waiving the deficiency judgement a condition of the offer. It is generally not an issue.

• 
  housepoor13th August, 2004

  If buyer doesn't want to be involved with a 1099, do you suggest walking away from deal or is there a solution or options? I have a deal but it is contigent upon no 1099.

• 
  bnorton13th August, 2004

  Check with the lender. It is not uncommon that they don't do either. Also, you may be able to buy the discounted note from the lender. If you do that, then you are the lender, and you can choose whether to 1099 or not. Also, let your seller know that the other option is foreclosure, and if they don't get their number when they sell, they can still file a deficiency judgement against him.

• 
  TheShortSalePro13th August, 2004

  A mortgagee agreeing to waive the pursuit deficiency is a legal issue having to do with mortgagee's rights, and not the same as the mortgagee agreeing not to issue a 1099.... which is largely an internal function of corporate accounting.... Two totally and separate events...
  
  [addsig]

• 
  amynewbie13th August, 2004

  short sale pro
  
  can you kindly elaborate. i dont understand what you mean.
  
  amynewbie

• 
  amynewbie13th August, 2004

  short sale pro
  
  can you kindly elaborate. i dont understand what you mean.
  
  amynewbie

• 
  bnorton14th August, 2004

  Amy,
  
  What he is saying is that waiving a deficiency judgement is giving up the legal right to pursue the difference between what is owed and what is received at sale from the borrower. It involves the legal system.
  
  Issuing a 1099 is an internal policy decision made by the lender.

• 
  amynewbie14th August, 2004

  thanks guys
  
  amynewbie