Insolvency/Bankruptcy

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What to do when you receive a 1099 from your lender in the amount of $515,000?


You can find great local Pleasanton, California real estate information on Localism.com Mike Jackson is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.

My seller and I tried to short sell his home from September 2006 through January 2007. He was in default and we did receive offers that were rejected and of course foreclosed. When we originally listed the property we aimed at trying to get a little under what he paid for to satisfy the first and second lenders. The last offer we received was for $540,000 and the banks refused.

Just a few days ago my seller received a 1099 from his lender in the amount of approximatley $515,000. He has been panicking as you could imagine to have to pay taxes on this amount. I asked all throughout my office from my Broker to other Realtors, CPA's, etc and came up with one word. "Insolvency"

I called the C.A.R. hotline today and spoke to the real estate attorney today and they told me to go to the California Society of Certified Public Accountants (800)922-5272. So I called the number and they told me to log on to http://www.calcpa.org/ and click on public , then click on find a cpa , then click unjder the category niche bankruptcy/insolvency. Then you would have to search under area code or zip code. I thought this was valuable information for a seller that does not want to pay taxes on their foreclosed home.

By the way the home I had listed is currently on the market at $399,000 MLS # 40318024

CLICK HERE FOR SHORT SALE LISTINGS

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by ShortSaleRealtor

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