If the bank enforces the deficiency judgment, who do they enforce it on the owner or the person on the loan.
I have a scenario where the owner and the person on the loan are different.
Any information would be appreciated. Thanks.
The lender only has an agreement for payment (basically a “contract”) with the person on the loan…the deficiency judgement will go against the mortagor.
Keith
can lender issue a 1099 and file a deficiency judgment ? what do banks usually do ?
They have to issue a 1099, it’s IRS rules.
You can stipulate in the P&S contract that the bank won’t issue a deficiency judgement, then their hands are tied.
JDS: what if they dont agree with the purchase contract in regard to deficiency ? their hands are still grabbing right ? btw, where do u put this on the p&s contract ?
They will agree, they just want the money.
Separate clause right after the purchase terms.