Communication

Confucius was so very intelligent!

As with the judicial foreclosure, if the loan in a nonjudicial foreclosure isn't fully reinstated prior to the date and time of the trustee's sale, the public auction or sheriff's sale occurs on the steps of a prominent public location in town such as a courthouse. If no one bids, the lender bids the amount of its loan plus accrued penalties and fees and takes title to the property. This is the most common scenario unless the property is desirable and has equity, in which case many interested bidders may compete in a free-for all.

If you are familiar with the IRS their perspective is that if you recieved any monetary gain you are to report that gain to the IRS. In the realm of short sale the federal government did pass the mortgage forgiveness act in 2007 that did bring relief to homeowners that were in the position of having to report this "gain" to the IRS. The Obama administration has extended this program that would deny a lenders ability to pursue a homeowner with a 1099 for the "gain" they recieved as a forgiveness of a loan. This is for a homeowners primary residence only. I hope that this information helps!