When the bank issues a 1099 on a short sale, you may be held accountable by the IRS for taxes on the amount of the 1099.
The 1099 is saying that you had income based on the sale of the house, even if it was a short sale. that is why you have to get the bank to agree not to issue a 1099.
When I say agree, I mean that it must be put in writing by the bank as a contract.
There are little things like this that you will not know about foreclosure. If your attorney does not specialize in foreclosure defense, he/she may not know this either. The field of Law is so large and complex that lawyers cannot be make guarantees to the outcome of each foreclosure case. However, with our assistance, your chances of successfully defending your foreclosure will be greatly enhanced. Do not go the battle alone, find a foreclosure lawyer who can show you a proven track record of success.
Created by Attorney Charles Franklin & contributing editor Jared Speck