Legal Question in Real Estate Law in Florida

We completed a short sale last year. The mortgage was for 217,000 and the buyer paid 155,000. We have received a 1099-c for over $78,000 which is more than the difference by 12,000. We also received a Mortgage interest statement for around 12,000 which seems to account for the difference in the 1099. Can the bank do that legally and does it mean we have a higher tax due to the IRS?


Asked on 2/14/11, 12:57 pm

1 Answer from Attorneys
Jane-Robin Wender Wender Law, P.A.

YOu definately are going to have to pay taxes on the difference between the short sale and the mortgage. Why there is a 12k difference I don't know but if you read your paperwork you may be liable for attorneys fees, late payments prior to the short sale, interest prior to the short sale, fees for transfer of title in the short sale, etc.

Read more
Answered on 2/16/11, 9:20 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Florida