---

PMI and Short Sale

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
stevemia Joined: 05 Aug 2009 Posts: 7 4.11 Dollars($)	Posted: Sat Feb 20, 2010 10:10 am    Post subject: PMI and Short Sale Like 0 Dislike 0 If the bank issues a 1099C for the entire difference between the selling price and the amount of the mortgage, I understand it as forgiveness and it must be reported to the IRS. Can the PMI company still come after me in a short sale even after the 1099C has been established? Im closing in couple of weeks, realtor told me the bank approved short sale and is not sending file to PMI company because the difference between what is owed and BPO is so great, that it just isnt worth it (second home condo). Who knows, PMI company may still step in but my concern is going to closing and being chased afterwards by PMI company. Please help...also, what assurances can my attorney get from the lender and PMI company that after issuing the 1099C that the PMI company will not try to recover the amounth they pay to the bank. Please help ASAP!
Guest	Posted: Tue Feb 23, 2010 2:50 am    Post subject: Like 0 Dislike 0 Well... the pmi company can still come after you though you received the 1099c. The lender would ultimately recover the dues from the private mortgage insurance company. The insurance company will in turn collect the dues from you. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
stevemia Joined: 05 Aug 2009 Posts: 7 4.11 Dollars($)	Posted: Tue Feb 23, 2010 4:49 am    Post subject: PMI and Short Sale Like 0 Dislike 0 If the debt is being forgiven through a 1099C and I must pay tax on the entire amount (investment property), then it seems like double jeopardy? Paying taxes on the "gift" and then still being in a position to be sued for the money later on? So what guarantees must I get up front to make certain this cannot happen?
Niicss Joined: 03 Oct 2005 Posts: 4770 Location: New Jersey 499.28 Dollars($)	Posted: Wed Feb 24, 2010 2:54 am    Post subject: Like 0 Dislike 0 Once you receive the 1099c, it means that your debt has been forgiven. The lender will not be able to come after you for the dues. However, you would be responsible for paying the taxes on that forgiven debt to the IRS. _________________ Good is the Enemy of Great.

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0