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    bamboo1's Avatar
    bamboo1 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 19, 2007, 06:16 PM
    Short sales and 1099
    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.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Aug 19, 2007, 06:31 PM
    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.
    DianeV Sr Loan Officer's Avatar
    DianeV Sr Loan Officer Posts: 76, Reputation: 9
    Junior Member
    		  
    #3

    Aug 20, 2007, 05:52 PM
    What the heck is "deletorious"? :)
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #4

    Aug 20, 2007, 06:55 PM
    Quote Originally Posted by DianeV Sr Loan Officer
    What the heck is "deletorious"? :)
    A misspelling. I meant:

    del·e·te·ri·ous
    : harmful often in a subtle or unexpected way <deleterious effects> <deleterious to health>

    ;)
    DianeV Sr Loan Officer's Avatar
    DianeV Sr Loan Officer Posts: 76, Reputation: 9
    Junior Member
    		  
    #5

    Aug 20, 2007, 09:54 PM
    Looks like I'll have to keep my Funk and Wagnalls handy...
    Joe Mortgage's Avatar
    Joe Mortgage Posts: 8, Reputation: 1
    New Member
    		  
    #6

    Sep 7, 2007, 02:05 PM
    Quote 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.
    Why are you attempting to short sale? How far behind are you and what is the true appraised value of the home?
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