Foreclosure University Forum

short sale tax liability to seller

by idahosoud, Sunday, February 06, 2005, 22:34 (5336 days ago) @ foreclosureuniversity

several years ago i had property go back to the debt was 150K...
the back accepted an offer from an investor for 125K ...the following
January i rec'd a form >>> 1099
from the bank showing a "charge off
of 25K ..which is treated as ordinary
income...i was'nt expecting this....

Now fast forward to now.. i have a deal
working to get a short sale accepted
to save this seller from foreclosure
and give him a little moving cash...
Seller thinks all is well and i'm a
great guy till next Jan. when he
gets a 1099 for income he's never seen..

QUESTION>> i tell him in writing up front that there could be tax liabilities and risk the chance of

losing the deal>>>>

Suggestions >> comments>>

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