Countrywide/Deficiency Judgement/Capital Gains Loss?
Need some advice.
Have new Condo in Fort Myers that was purchased as second home in 05. Owe 200K, worth 140-150. Have tenant in place at this point. Took a financial whack and letting this property go. Two questions...
1) Got a lawyer and home is currently listed as Short Sale by local realtor. Since I will get a 1099 for difference from Countrywide, can I offset that "gain" by the losses I took on the property this year..ie interest,taxes, etc.
2) What do lenders look at when deciding to pursue a deficiency judgement and how likely are the to get one? My lawyer is going to send them letters asking them to show that they are the "true" owners of the loan etc. since he claims that is starting to work in litigation against lenders who claim they own the loans...when in reality it is the investor pools they sold the loans off to that own them. He claims they will probably back down when that is asked. Anyone have any experience with this?
I have been hearing of some cases where a judge prevented a foreclosure as this process can only be initiated by the owners of the note. The point being that many servicers do not even know who actually owns the note, and there may be thousands of owners when it has been bundled and securitized.
I would be very interested in hearing more on this- please keep us posted as to the results of your inquiry on this issue.
Chris
My (unclear) understanding is that the servicer of the note is indeed irrelevant- which is why they cannot initiate a foreclosure action...
Chris
I am very interested to know how far along you are in the process. We are about 60 days late with Countrywide and are in a similar situation.
[addsig]
read several articles about this. here a link to this judge ruling:
http://www.bloggingstocks.com/2007/11/15/ohio-court-gives-victory-to-homeowners-facing-forceclosure/