Comment

Comment by Kent Dills on March 23, 2010 at 12:58pm

Terri, I've got some good WF contacts. Is this an FHA, Conventional Fannie/Freddie, or Conventional non-Fannie/Freddie loan?

Comment by Victoria Frieberg on March 23, 2010 at 7:37am

you are right Steele..could is such a big word though! The length of time that these deficiency judgements can be held over peoples heads has been alluded to as the russian roulette of the whole deal, some people gamble, some don't..personal tolerance level I guess..

Comment by Steele V. Propp on March 23, 2010 at 7:32am

Just because the option for a deficiency judgement is open doesn't mean it WILL be pursued. Only that is COULD be pursued.

Now, most of us wouldn't want that hanging over our heads but some sellers are willing to take the chance. A number of articles I have read recently give some pretty strong reasons why it is not worth doing judgements. For the present should a lender refuse to give us the no deficiency language we can only present the facts as we know them and let the consumer make the decision.

Maybe a successful number of HAFA shortsales will influence these lenders.

Hope, Hope.

Comment by Tiffany Alleshouse on March 23, 2010 at 7:26am

I'm so thankful to be a part of this group! Too busy to go into detail as of why, but I am thankful!

Comment by Victoria Frieberg on March 21, 2010 at 3:38pm

would have to assume that means they will be pursuing the deficiency if it appears to be an option. depends on your State.

Comment by Zia Montesi on March 21, 2010 at 9:39am

Ah Wells Fargo Short Sale...this is the next one. PNC wasn't too painful, people were pleasant , helpful. That and GMAC, have to do some research on them! zz

Comment by Ben Benita on March 15, 2010 at 10:51am

It's Monday....cut me some slack!!!!

;-)

You are correct, you can get it at:
http://www.irs.gov/pub/irs-pdf/f982.pdf

Comment by Bob Wienk on March 15, 2010 at 10:43am

Ben:

I believe you meant IRS form 982, not 928.

Comment by Pacita C Dimacali on March 15, 2010 at 8:50am

Mortgage Debt Forgiveness Act of 2007 was extended through 2012 http://www.irs.gov/individuals/article/0,,id=179414,00.html

However, that's at a federal level. Many states, including California may not exempt the property owner from taxes due to the difference of what was owed and what was "forgiven" which is considered and will be reported as income.


Here's the update on California's position on this http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.shtml

Comment by Amy Cole on March 15, 2010 at 8:36am

Yes... sellers definitely always receive a 1099 resulting from any Short Sale- it is for the $ difference between what they owed on the loan and what the property sold at- because the IRS considers this 'income' since the debt did not get repaid at full value. sounds kinda crazy but it is true...they consider that the seller did not have to pay an amount previously indebted for so they are 'ahead' by that amount and therefore liable for it as income to be taxed. The Mortgage Debt Forgiveness Act is allowing this 1099 income situation on a primary residence to be waived as taxable income. They just extended the Act for another 2 years I believe.

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