Matt Vernon Spoke to Realtors – Bank of America Seems to be Advancing
Fred Weaver and Kevin Kauffman of Group 46:10 welcome their good friend Brian Gubernick back to talk about his experience at a class given by Bank of America’s Matt Vernon (yo Matt – where’s your FaceBook fan page?).
It seems that B of A is making advances… And by all accounts… Matt is a stand up guy – who knew? Matt was honest and up-front with their short falls. A great change from OCWEN.
Watch and find out what Brian learned.
HOW TO CLOSE AT LEAST 3 DEALS IN THE NEXT 90 DAYS
Get instant access to our online masterclass to learn the simple steps.
HOW TO CLOSE AT LEAST 3 DEALS IN YOUR NEXT 90 DAYS
Get instant access to our online masterclass to learn the simple steps.
About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
Wow no one wants to comment on BofA doing good things? Come on guys =) Give them some love.
LOL 🙂
Pretty interesting stuff. Great video. Little love for BofA…yep, doesn’t happen very often.
I applaud BofA for the vast improvement they’ve made over the past few months. Files have gotten approved much faster and customer service has improved. I actually get the feeling that somebody actually cares about having a good process and helping the homeowner.
Great informative stuff – my partner and I have been talking at length about deficiency rights. I think it also depends on what type of loan it is. Just had an approval letter on a BOA FHA loan and asked the negotiator about Seller getting 1099 and she said NO – and referred me to the HUD PFS Disclosure – which in my opinion is vague too. What say you?
Deidre – here is a write up I did on 1099’s that may shed some light…
Are there any tax ramifications to a Short Sale?
There may be tax ramifications to a Short Sale but this is a very “loaded” question. You may have heard, “Don’t do a short sale because you will get a 1099 and have to pay taxes on the difference between what you owed on your home and what you sold it for or the amount the bank wrote off.” This may be true, but this is not the whole story…
If you borrow money from a lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.
The thing that most people don’t know or don’t tell you is that with a Foreclosure, you will also get a 1099. In the case of a Foreclosure the 1099 is called a “1099-A.” So what’s the difference between a 1099-C and a 1099-A? The ‘C’ stands for “Cancellation of Debt” and the ‘A’ stands for “Acquisition or Abandonment of Secured Property”. The differences are much more than you get the ‘C’ with a Short Sale and the ‘A’ with a Foreclosure. It is important to know that while there are many differences, the tax consequences for the ‘C’ and the ‘A’ are the same. You may not even be required to pay taxes on the ‘income’ as shown on the 1099-C, but don’t just assume that you won’t have to pay. While we are very good at successfully closing Short Sales, we are not tax experts.
Before making your final decision, first consult a CPA or Tax Preparer .
The Mortgage Debt Relief Act of 2007 provides relief to many, many homeowners. For more information on the Mortgage Debt Relief Act, how it works, who it applies to, and more, please read more directly from the IRS website by clicking here .
One more thing you should know is that in approximately 99% of the cases, the amount of the loss at Foreclosure is greater than that of a Short Sale. If you are going to receive a 1099 in either case, it is in your best interest to do a short sale instead of allowing your property to be sold for less at Foreclosure or as an REO (Real Estate Owned or Bank Owned Property). Now that you know this, don’t allow rumors and incorrect information to influence an important decision in your life. Losing your home to Foreclosure is always the last resort and you should seriously look at all of your options before letting your home go to Foreclosure.