All Forum Posts by: Corry Taie

The bank can write off their loss with a 1099-C... The seller would then write of their loss (in the form of lost equity) with a 982 form.

If it is a N.O.O. property, and or the loan amount is over $2mm, then this would apply.

If the loan amount is under $2mm, & it is the sellers primary residence, it would fall under the debt forgivness act.

*I am not a tax profesional or attorney so I am not giving tax or legal advise*

Just stating what has been used.

Thanks for that vote of confidence Will. I am certainly giving it 100%. Just picked up a $1M short sale. looking forward to that. Working on getting to 100 in the pipeline. Just dealing with the typical holliday slow down.

Good Luck!

Thanks Will. I am looking forward to doing alot more deals/ 2010 is going to be a great year in Short Sales. I just need ALOT more write offs!! lol

Ok. The bank will NOT believe the value we have so they do their own valuation (i.e. BPO or Appraisal). They then do a risk analysis & make an educated decision as to what they will or will not accept as a pay off. This figure is based on the value they get from THEIR OWN BPO or APPRAISAL.......... They are willing to accept an amount below their percieved value based on their own due diligence. If we resell at or below FMV & make a profit, there is nothing wrong with it. Disclosure is your friend in this situation. BTW the bank is NOT a principal in the transaction. They are simply a third party who has a loan that is collateralised by the property which they will take a settlement offer to release the lien on. No one is getting ripped off or defrauded. Only being helped. Please protect your birth right to free market capitalism, let people who dont "get it" know to get educated & get a clue. They only whine about it because they didnt figure out how to make a living at it. And what a living it is.

As always,
Enjoy & Happy Investing

I will talk to my negotiator. We have a bunch of Short Sales & we are getting them at great discounts. I am sure some are FHA loans. Also, I would suggest beating up the BPO a bit.

We're still getting ours done.

It will be funny when B of A starts getting sued because they cannot require this. The short sale is between the homeowner & the buyer. The bank is simply a 3rd party with a lien on the property who will ultimately accept a settlement offer on the debt. They are NOT a principal in the transaction.

Yeah, I'm not too sure about that either. It would be nice to get these things done faster, but I'm not sure it will happen anytime soon. Plus we will be seeing another decline & more defaults, which will compound the problem.

They're watching!! lol :cool: