Legal Question in Real Estate Law in Florida

A short sale is when the bank agrees to let someone sell their house for less the amount owed on the mortgage. If the bank provides a full deficiency waiver for the difference between the amount of the mortgage and the amount of the sale, then the bank will issue a 1099 because the forgiven debt may be considered income to you. Unless you receive a full deficiency waiver, the bank may be able to pursue you for the difference. Homeowners should make sure they will not be responsible for the deficiency or have to sign a promissory note. If you need legal advice, consult with an attorney who can advise you of your options before you make a decision. Regards,