Sheriff Sale
If a property goes to sheriff sale does the bank still 1099 the original mortgagors on the difference or is this just on a short sale
If a property goes to sheriff sale does the bank still 1099 the original mortgagors on the difference or is this just on a short sale
No matter how the is sold(sheriff sale/short sale) if the lender gets less that what they loan out, the 1099 can always be issued. However, the owner can contest the 1009 income tax with the IRS. Most times they won't have to pay if they have a good case.