Re: my $.02
Posted by Jeanette on March 01, 2004 at 10:21:48:
In Reply to: my $.02 posted by TheShortSalePro on March 01, 2004 at 08:47:11:
It's a little complicated but here's what I know.... the property is deeded back... the bank should first look at the investor... the investor does not have to 1099 if they are not viewed as financial institution. Some servicer's do not recognize this first step and 1099 everyone but even then there is another step..... On a deed in lieu the mortgagor may be liable for the difference of the amount owed and the fair market value, at the time that it is given back. Some investor/insurers do not require an appraisal at the time that the property is given back. In which case the amount to access property value is "total amount bid" which is the total amount due. There would be no difference in the value of the property and the total amount owed so the 1099 would reflect zero gain. An example of an insurer who uses "total amount bid" is FHA.
- Re: my $.02 - Jeanette 10:29:34 03/01/04
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