Hi! I need some help asap with wording on my purchase agreement. This is my first ss and I have all the info needed to send to the lender except my signed purchase agreement. I need specific wording to put in the agreement stating that I’m trying to buy from bank before it goes to auction Mar 23 and that the sellers will have their debt forgiven so they won’t be issued a 1099.
If anyone can help me with this, I would greatly appreciate it!!! Thank you!
You’re using the wronge thing. I use the standard PO for the state of OHIO.
My stated intentions and request for debt forgiveness is done in my offer letter. Below is the standard offer letter I use.
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02 March 2006
To:
From:
RE: Short Sale for loan #:
Dear Sir/Ma’am,
As a foreclosure negotiator my job is to negotiate short sales, payoffs and forbearances between homeowners and lenders for properties in distress. My job is to be a non bias party paid only after the completion of a successful negotiation. Neither I nor my company collects any funds from the homeowners at any time. Our payment comes from the buyer in the resale of the property.
Please keep in mind that like you I also have several cases I work at the same time. I strive to provide quick and accurate information to help make both our jobs go as smoothly as possible.
I do everything I can to provide you with a fair and reasonable offer the first time. If you feel my justifications for the offer are not strong enough please inform me of your counter offer.
The homeowner in this case is in foreclosure due to hardships beyond their control. The homeowner is still dealing with these hardships so any unsecured or secured loan of the remaining balance over my offer is not possible. I also ask on behalf of the homeowner that you do not file a 1099.
Please review the information I have provided for you carefully. I’m confident you will agree that my offer is more than fair and offers your lending institution a minimal loss on this investment. Upon your acceptance of my offer we will require a minimum of 30 days to close. In most situations we are able to close prior to that but on the off chance of an unforeseen problem I do like to allow 30 days.
I have enjoyed working with you on this project. I do hope we have the opportunity to work together again in the future. I look forward to your response.
Sincerely,
Matt Fairfield
Foreclosure Negotiator
Chateau Management
E-mail address
Business phone number
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Not wanting to get into a big discussion on this or anything but will the 1099 actually effect the seller even if the bank sends it?
With the current tax law concerning primary housing, if a person(s) has lived and owned the property for at least 2 out of the last 5 years, then up to $250K (or $500K if married) in profit on the sell of that property is not taxed. That income would also include a 1099 from a lender on a SS situation.
Raj