1099 and Full Waiver of Deficiency
If you receive an approval letter stating the following -- will you still be 1099'd as income on the it:
Upon receipt of the agreed amount, BAC Loan Servicing and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligagion therein, and waive all rights to pursue further judgment or deficiency.
Comment
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Comment by RoJane Maybee on September 26, 2011 at 2:15pm
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Thank you! Yes...we also discovered that the 2nd is all purchase money, so she is protected !
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Comment by Bryant Tutas on September 26, 2011 at 1:32pm
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That is a full written waiver of deficiency. And yes they will receive a 1099c and have to declare it as income. They need to talk to a CPA to see if they will have to pay income taxes on the gain (loss to the lender gain to the borrower).
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