Will seller get a 1099 after a Short sale?

  1. profile image46
    SoCalDeeDeeposted 7 years ago

    Will seller get a 1099 after a Short sale?

    In California, if home loans (first and second) are 400K and buyer has offered 300K for short sale.  Will seller get a 1099 for difference?  If so, wouldn't it be better to let property be foreclosed on?  Seller would not be looking to buy another home in future.

  2. profile image44
    sadaafposted 7 years ago

    A short sale is the process by which homeowners can sell their home for less money than they actually owe on the mortgage(s). This is accomplished by providing proper documentation to the lender(s) to convince them to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgage lender(s) will actually take a loss on the mortgage.

  3. dabeaner profile image55
    dabeanerposted 7 years ago

    I am not into real estate.  But remember that the IRS wants a piece of your hide no matter what you do.

    After all, you are just a serf, a "n-word" on the U.S. corporate-state plantation.