I have a bank who has told the seller they are going to 1099 C her the difference for what the offer is and what is owed. She is short $150,000 from what is owed to the offer accepted. I have asked the bank to waive the deficiency judgement, which they are not willing to do. The seller is concerned about being taxed by the IRS and is now just considering filing foreclosure instead of accepting the short sale to avoid the tax implication.
How do I get the seller to accept the agreement and/ or have the bank waive the dificiency judgement without making her liable and taxed on the 1099C???
Is there any solution to this problem?
Any help would be great!