 |
In a Short Sale |
| |
 |
Edith,
My girlfriend and I can no longer afford our home and have opted for the "short sell" - There is a mass of confusion surrounding how the difference is paid down.
I have been told by the front line reps at Countrywide that they can 1099 us for the difference on the loan.
However, the guy who wrote our loan lives here in NV and said that state law says they (countrywide) cannot 1099 us. I have looked all over the web and can't seem to find an answer without having to pay an attorney - do you know? |
| |
| |
 |
The point of a short sale is that the lender agrees to forgive the remainder of the debt. The IRS no longer considers that shortfall as taxable income -- special rule through 2009. Even if you get a 1099, it should not be taxable. |
| |
|
Edith
Originally published on August 5, 2008 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
