I have a owner who does not want to be 1099’d by the lender after a shortsale has been completed. She is asking to put a clause in the contract before she agrees to sell the property.
Is this going to be a problem with the lender (countrywide)?
thanks for all your help
That is non-negotiable with the lender. She will get 1099’d whether she short sales or forecloses. However, you may want to point out that there has been a change in the IRS law and any debt forgiven for a primary residence due to a short sale or foreclosure is no longer taxable for years, 2007 - 2009.
You can not negotiate out federal laws…this homeowner is an idiot. Deal Hunter is right, the law does allow some owners to avoid the 1099…if not, tell them to get a CPA to find out if they are “insolvent” before the sale is complete.
I don’t want to be 1099’ed!!! HAHHAHAAHA. Heck, I don’t want to pay taxes let me just tell my employer as condition of employment that I don’t want to file a w-2 with them.
LOL what a moron. :rolleyes