Short sale deficiency & 1099 QUESTIONS?!?
Hello. I was writing because my brother is in the process of short selling his house and has LOTS of questions. I told him, i would ask on here and see if i could get any advice and answers from any of you lovely people =) He is doing this process without filing bk. Here are a couple of his questions....anything would be helpful....thank you so much
1. If the B of A agrees to a short sale & sends him a 1099, does this mean they are forgiving the remainder of the debt on the house?
2. And if the debt IS forgiven...can they still try and collect on it?
3. Also, will he have to pay taxes on the 1099 or does the new mortgage debt relief act protect him?
4. He also has a re-purchase 2nd mortgage for $65000.00 with Wellsfargo & they have agreed to release the lien on the house for $5000. Does this absolve him from any issues he will have with them? Or can they come after him as well? And is there a 1099 involved in this?
THANK YOU SO MUCH, ANY INFO WOULD BE HELPFUL
1. If the B of A agrees to a short sale & sends him a 1099, does this mean they are forgiving the remainder of the debt on the house?
2. And if the debt IS forgiven...can they still try and collect on it?
3. Also, will he have to pay taxes on the 1099 or does the new mortgage debt relief act protect him?
4. He also has a re-purchase 2nd mortgage for $65000.00 with Wellsfargo & they have agreed to release the lien on the house for $5000. Does this absolve him from any issues he will have with them? Or can they come after him as well? And is there a 1099 involved in this?
THANK YOU SO MUCH, ANY INFO WOULD BE HELPFUL
