OfflineWhen a homeowner has gone through a foreclosure more particularly in pre-foreclosure sale they may receive a 1099.
This is an accounting to the IRS that the home owner made an increase or profit through the year. However, because of the great substantial distress the homeowner has been under the 1099 may not adversely affect them.
The other options banks have are to give a deficiency judgment. This can be given if a short sale or foreclosure auction is followed. When you negotiate with the banks you can require that they not send a deficiency judgment.
In either case if a pre-foreclosure is done right the home owner may owe nothing and have no adverse effects against them other than their credit.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Most home owners are not going to worry about a 1099. They just want to know that they can continue with life. However, in the small percentage of people that have a hindrance with the 1099 you can offer to pay them the amount that will cover their taxes.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125