What is a Deficiency Judgment?
A Deficiency Judgment is the difference in what the property was sold for and what you owed on the mortgage, including interest and attorney fees. Your lender has the right to come back after you for 25 years to collect on the difference. They have 5 years to file a deficiency judgment and 20 years to collect from you…for a total of 25 years.
Many sellers will just give up and walk away from their house. The most famous speech from Winston Churchill was “NEVER GIVE UP, NEVER GIVE UP, NEVER GIVE UP, NEVER GIVE UP and NEVER GIVE UP. When sellers walk away and let their home go to foreclosure, they think it’s over… but it’s not! When you walk away, you are allowing your lender the right to obtain a deficiency judgment and come back after you for the amount owed for 25 years. Our market is not increasing, but decreasing, so by the time your lender gets the house back to resell, you are going to owe even more.
Our company has a high success rate in getting your lender to accept the short sale and waive the deficiency judgment (see Testimonials on www.SellFastRealty.com). Having our Sell Fast Realty team negotiate on your behalf leaves you in control of the outcome of the property. Our #1 Focus is YOU!
What is a 1099-c?
A 1099-c is like a W-2. This is income that you receive. However the 1099-C is what the lender uses to forgive your debt and some sellers are required to pay taxes on this amount. Homestead owners of property only have until December 31, 2012 to take advantage of the Forgiveness Act that President Bush put into place to excuse the owners from having to pay income tax on the 1099-c from their short sale. There are some additional terms; I am not a CPA or an attorney, so I would highly recommend that you contact one. However, many of the homeowners I have helped did not have to pay taxes on the 1099-c.
NOTE: I don’t know if the Forgiveness Act will be extended, so you need to ACT NOW!!
If the property was an investment property for you and you receive a 1099-c, you still may not owe any additional taxes, as it could still be a loss for you. Again, this is a direct question for your CPA to answer.
Many sellers are able to have their CPA file a C982 form which states that “their liabilities outweigh their assets” so they are exempt from paying the taxes. Please talk to your CPA about your specific situation.
What’s the next step for me?
Take Action Now by calling us at 407-888-3433 or call the Sell Fast Realty Agent who provided you with this Special Report. You can also go online at www.SellFastRealty.com or www.FreeFactsAboutForeclosure.com and fill out the contact information. Please be sure to fill out the form completely for a quicker response. We will contact you personally within 24 hours to tell you how our expert short sale team can relieve your stress….. Our #1 Focus is YOU! I am honored that I can educate you with the true facts about foreclosure. I am sure you have some more questions after reading this Special Report and we look forward to discussing them with you on a personal and confidential call with you.
Broker and Short Sale Negotiating Expert
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