Scaredandebet
Just do a short sale. No worries. Banks alwayse send 1099 form to the IRS. Since you are primary residence owner you will be exluded from paying any tax, unless you have taken some cash out of your home and money was used for different purposes than home.
If your offer is close to Fair Market Value you shoul be fine and bank ( Investor) should not ask for any promisorry note.!
Give a try.

Hi Greg: I understand that we have to pay taxes as the law requires. Agents aren't clear about that when you talk short sales with them. I wish they were. We refi'd with CountryWide now BofA owns on both of our loans. We're trying the route of Short sale right now. With your comment are you saying there's no hope for me? What are the outcomes for folks who did refi? I had to because it was a 5/1 ARM, I just had my baby and the rates started to adjust. This was right before the bubble burst.

Barb. Do you really think that stopping a Sheriff sale is a big achievement? It just take a one phone call 2 days prior to the auction and Sheriff Sale is always postponed!!!!!
Secondly I do process right now about 50 SS. 15 of them are in BOFA so do not tell me that I do not know what I am doing. Maybe you have just a luck having your short sale approved with BOFA within 30-60 days, cause this is not a CASUAL turntime. I can tell you thing. Once I had my short sale being approved with 7 business days.! Is it my personal achievment? No. Servicer was small , they were less busy.Is it something that I should write all over that I get short sales approved with a week? no!!
Have a great day!
I do not have to write my full name cause I am not looking for a leads.;)

Having accepted offer by hte sellers? It means nothing!!!!!!!! Bank has to accept the offer. It is big difference between Bofa and former Countrywide. If the seller's loan was originated in Countrywide I thik is much faster than in Bofa. Since they launch REO TRANS platform it should cut some significant time. More or less - you have to wait around 3-5 months..

We are about to submit an offer to Bof A as well and I'm scared. I happened to talk to a lawyer about the possibility of a 1099. He said the issues they are hired for with BofA are that they will only accept the sale if you agree to figure out payments and recoup the difference. Has anyone been dealing with this?

You have to ask your seller first is it really Bofa or old Countrywide. Difference is significant. Bofa is much slower than Countrywide nowadays.

If the listing agent had the third party authorization in before the contract was accepted by the seller, and if the listing agent submitted a complete Short Sale Package for approval and that Bank of America knows that there is a contract, the Short Sale Approval generally has taken with BofA roughly 3 weeks. Then they order the BPO and at the same time the contract is then submitted to BofA along with raw data for the Bank to understand where the property sits in that neighborhood, the median price, the average market time, the list of bank owned properties along with the list of pre-foreclosures that haven't even hit the market yet. And that area can take 3-5 weeks and then you are up to bat. Of course, then the bank wants a quick close but that can always be negotiated. BofA isn't that hard to deal with and they have hired out another company to assist them in the short sale arena, so hopefully, things will move just a tad faster.

It pretty much hinges on the listing agent and what their background is in short sale submission and success. Knock on wood, I've had 100% success with short sales and getting them closed on a timely basis. I always keep the buyer's agent posted on the events, the changes, the requests so the buyer is always informed.

Is Bank of America the only outstanding lien on the property or is there a second loan, home equity loan, etc. Is the seller dealing directly with BofA or is there a loss mitigation company involved. There is no simple answer to your question. I have been involved in short sales where more than one offer had been presented on several different occasions and each one took a different amount of time. It appeared that it depended on who at the bank picked up the file when the offer came to the forefront, what the terms of the offer were (price, closing, and type of financing).

When I have buyers involved in short sales, I always tell them to be prepared for anywhere from 2 months to 6 months to receive final bank approval and, hopefully, get it to the closing table.

Sofille,

There's no standard answer to this question, as each transaction is handled on a case-by-case basis. I would suggest that if you're not WILLING to wait at least three months, that you should not be making offers on short sales.

That's the trade-off for what could turn out to be a fantastic buying opportunity.

Call me if you have any other questions.

Matt Bukovy
Sr. Mortgage Consultant
Wintrust Mortgage
(Formerly Professional Mortgage Partners, Inc.)
3317 W. Irving Park Rd.
Chicago, IL 60618
Cell 773-416-7107
Phone 773-654-2498
eFax 773-409-5558

BOA is the worst! It can take months, but once in a while it is only weeks. The short sale process is very difficult to predict no matter who the bank is, but BOA is clearly the worst to deal with!