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giacona · 09-15-2009, 09:20 AM

Ok, well my short sale is approved. My 1st loan with countrywide came through on 9/1/09. However they are not requiring a promisarry note which is a good thing.

The thing I do not like is the language of the approval it states they have the right to come after me for a defeciancy. However the approval letter says nothing about the recovery department getting in touch with me nor does it say anything how they will report the credit.

The negoitater robin howard will not budge on this language and the invester is Freddie. I am not sure if that makes a difference.

Now I also do my personal banking with B OF A. Since I am approved would I be better off moving my finances to another bank once this closes so they can't see what I am doing?

Now the 2nd lender is getting 6,500, but they also reserve the right for a defeciancy.

I do not have the money to pay either lender. If they pursue me for the difference I may be forced into a CH 13 bankruptucy since I do not qualify for a chapter 7.

Also these is all refinance money none is orignial purchase money so I am not sure what the means. My attorney seems to think bank of america will 1099 me and is not sure about the 2nd lender pnc.

Can anyone please provide input?

Do the Banks get any type of write off by sending a 1099 to the seller? If there is little chance of collecting?

Also If they do send the 1099 will it be for the 2009 tax year or can they send it later? This is just so gut wrenching and not sure what to do here.

09-15-2009, 09:20 AM	#1 (permalink)
giacona Member Join Date: May 2009 Posts: 24 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Short sale approved but scared Ok, well my short sale is approved. My 1st loan with countrywide came through on 9/1/09. However they are not requiring a promisarry note which is a good thing. The thing I do not like is the language of the approval it states they have the right to come after me for a defeciancy. However the approval letter says nothing about the recovery department getting in touch with me nor does it say anything how they will report the credit. The negoitater robin howard will not budge on this language and the invester is Freddie. I am not sure if that makes a difference. Now I also do my personal banking with B OF A. Since I am approved would I be better off moving my finances to another bank once this closes so they can't see what I am doing? Now the 2nd lender is getting 6,500, but they also reserve the right for a defeciancy. I do not have the money to pay either lender. If they pursue me for the difference I may be forced into a CH 13 bankruptucy since I do not qualify for a chapter 7. Also these is all refinance money none is orignial purchase money so I am not sure what the means. My attorney seems to think bank of america will 1099 me and is not sure about the 2nd lender pnc. Can anyone please provide input? Do the Banks get any type of write off by sending a 1099 to the seller? If there is little chance of collecting? Also If they do send the 1099 will it be for the 2009 tax year or can they send it later? This is just so gut wrenching and not sure what to do here.