My husband and I are in the process of trying to do a short sale on our home. Can you
Tell me what can we expect from a 1099? For example we owe $600k and if sold for
$500k what would we be liable for. We live in the state of va. Also how does this impact
Our credit.

The 1099 will be for the amount that the lender "forgives" If you owe $600K and you pay off only $500K then you will get a 1099 for $100K. You will then have to pay taxes on the "gift" of $100K.

This will have a deletorious addect on your credit, but not as bad as a foreclosure.

What the heck is "deletorious"? :)

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Originally Posted by DianeV Sr Loan Officer

What the heck is "deletorious"? :)

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A misspelling. I meant:

del·e·te·ri·ous http://www.merriamwebster.com/images/audio.gif
: harmful often in a subtle or unexpected way <deleterious effects> <deleterious to health>

;)

Looks like I'll have to keep my Funk and Wagnalls handy...

Quote:

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Originally Posted by bamboo1

My husband and I are in the process of trying to do a short sale on our home. Can you
tell me what can we expect from a 1099? For example we owe $600k and if sold for
$500k what would we be liable for. we live in the state of va. Also how does this impact
our credit.

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Why are you attempting to short sale? How far behind are you and what is the true appraised value of the home?