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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation Posted by Rob on April 10, 2009 at 7:25 AM In Reply to: Re: The Mortgage Forgiveness Debt Relief Act and Debt Cancellation posted by Rogie Robinson on April 09, 2009 at 3:51 PM : : : Man, I think I've forgotten way too many things regarding short sales. I've had a lot of push back from realtors and sellers regarding the owners exposure to deficiency judgments. And then just this a.m. I had a faint memory of lenders being unable to pursue one if they address a foreclosure using non-judicial means (which almost all lenders do, e.g. 99.99% - I've never seen one in CA). Which means it's a non-issue. Is this the case? And if someone can cite some code, that would be great! Unfortunately, that still means the lender can 1099 them statutorily until AB111 is renewed (having expired 12/31/08). Love to hear some feedback. : : Hey Rogie : : I believe this is good until 2012, as far as the 1099 goes. As far as the deficiency judgement, I believe the lender can retain that right on recoarse money if the lender only releases the lien. We have had some luck getting a full satisfaction by raising our offer to get the homeowner a full satisfaction. Although on a recent transaction with Indy-Mac Federal they would only give a release. Again has anyone seen a lender go after anyone other than on a HELOC? I also would love any input from the others. : Thanks, Rob. The biggest problem is Countrywide. They have now modified their short sale acceptance letters to say that they reserve the right to pursue a deficiency judgment and they are sticking to their guns. Other lenders have been relatively easy to deal although sometimes they'll request a note. As for AB111, unless there has been a change in the last few days, I don't believe it has been renewed. I've been speaking with a lot of realtors and a couple of investors and they all thought that AB111 did expire. People are pushing the CA legislature to renew it AND make it retroactive to the 1st of the year. Got my fingers crossed for the homeowners and myself! -Rogie Rogie, you are absolutely right. I went and pulled out last CW file, which had that verbage as well as the infamous line 10. On that transaction we were not buying the property. It was straight to a full price end user. It was the best scenario for that situation. As for AB 111, all I can find is the same thing, that the extension is being considered. If the home owner is insolvent would the proposed BS gain be wiped out, or with 121? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : Man, I think I've forgotten way too many things regarding short sales. I've had a lot of push back from realtors and sellers regarding the owners exposure to deficiency judgments. And then just this a.m. I had a faint memory of lenders being unable to pursue one if they address a foreclosure using non-judicial means (which almost all lenders do, e.g. 99.99% - I've never seen one in CA). Which means it's a non-issue. Is this the case? And if someone can cite some code, that would be great! Unfortunately, that still means the lender can 1099 them statutorily until AB111 is renewed (having expired 12/31/08). Love to hear some feedback. : : : Hey Rogie : : : I believe this is good until 2012, as far as the 1099 goes. As far as the deficiency judgement, I believe the lender can retain that right on recoarse money if the lender only releases the lien. We have had some luck getting a full satisfaction by raising our offer to get the homeowner a full satisfaction. Although on a recent transaction with Indy-Mac Federal they would only give a release. Again has anyone seen a lender go after anyone other than on a HELOC? I also would love any input from the others. : : Thanks, Rob. The biggest problem is Countrywide. They have now modified their short sale acceptance letters to say that they reserve the right to pursue a deficiency judgment and they are sticking to their guns. Other lenders have been relatively easy to deal although sometimes they'll request a note. As for AB111, unless there has been a change in the last few days, I don't believe it has been renewed. I've been speaking with a lot of realtors and a couple of investors and they all thought that AB111 did expire. People are pushing the CA legislature to renew it AND make it retroactive to the 1st of the year. Got my fingers crossed for the homeowners and myself! -Rogie : Rogie, you are absolutely right. I went and pulled out last CW file, which had that verbage as well as the infamous line 10. On that transaction we were not buying the property. It was straight to a full price end user. It was the best scenario for that situation. As for AB 111, all I can find is the same thing, that the extension is being considered. If the home owner is insolvent would the proposed BS gain be wiped out, or with 121? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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