I was recently approached by a past client who informed me that the short sale of his primary residence in 2012 was not going to receive a 1099C from Wells Fargo..BTW-this was a Fannie Mae backed loan.
Apparently Wells Fargo informed him this was due to some issue with private mortgage insurance (Genworth) on his loan? The Approval Letter simply addresses the terms of acceptance- nothing regarding the 1099c filing (not unusual)..It seems to me that the completion of the short sale requires filing the 1099C by W/Fargo with the IRS regardless of PMI..Am I off on this position?
I've never heard of this happening unless the home was an investment property..Have any of you experienced this? As this was a F/Mae loan- is there any recourse against the servicer?? Any advice as to how to correct this with Wells Fargo would be appreciated.
Thanks in advance, I truly appreciate your feedback on this..
Seth
**********************************
like buttons
Replies