Question Details

Elena, Home Seller in Santa Ana, CA

Investment home sold as a short sale, bank wrote off the balance, will I be receiving a 1099?

Asked by Elena, Santa Ana, CA Mon Apr 21, 2008

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4
Yes this is a common practice by lenders. It seems they want "the last lick"
The good news is congress is considering a waiver of taxes on foreclosed
properties and it should also include short sales . contact your U.S. representative's
office to see where this is in the pipeline.
0 votes Thank Flag Link Mon Apr 21, 2008
Elena
This is something that should have been covered BEFORE the lender agreed to a short sale. Based on your post, my bet is that you will be 1099'd for the balance.

The shame is that you perhaps have avoided that. You should also ask how it will read on your credit report. That is also something that should have been agreed to before proceeding.
0 votes Thank Flag Link Mon Apr 21, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Contact the loss mitigation department of your lender, or give permission to the Realtor and Escrow to contact them direct and get a written statement from the person handling your account.
0 votes Thank Flag Link Mon Apr 21, 2008
Yes. Most probably you will be receiving. If I m correct you will have to capital gain tax on that but you should check with your tax consultant
0 votes Thank Flag Link Mon Apr 21, 2008
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