Replies to This Discussion

Permalink Reply by James ferebee jr on May 8, 2011 at 3:42am

If they send a 1099 you are done.

They can't 1099 and come after them at the same time...

Permalink Reply by S Smith on May 8, 2011 at 4:42am

I hope they send one--hopefully next year at tax time? We closed on it in Feb.

Permalink Reply by S Smith on May 8, 2011 at 4:43am

the lawyer we dealt with said none of their clients had the banks pursue the deficiencies after 2-3 years of waiting....

Permalink Reply by Richard Zaretsky on May 8, 2011 at 10:12am

Writing it off is not the same as forgiveness of debt or satisfaction of the promissory note.  Writing it off - merely means the lender considers the financial obligation as not likely to be paid and thus a "loss" to them - but still subject to recovery.  It is still very much an open obligation in every legal sense.  The only way to stop the legal ability to collect the funds is (1) bankruptcy; (2) payment in some agreed fashion and amount as full satisfaction of the debt; or (3) the running of the statute of limitations to collect the debt.  Even with #3, although not legally collectable, debt collectors can and likely will still hound you for some sort of payment - they just will have no teeth to back up their threats.  An attorney retained by you can give you more complete advice specific to your situation.