How does everyone deal with 1099 of income to the homeowner.

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Does every bank issue a 1099, is it standard, can you do a deal and request the bank not to 1099 the homeowner.

Does it bother you in closing a deal that is short sale of say $100,000 that they are going to get hit with a tax bill of $28,000 or so and they can't even pay mortgage payments, so how are they going to pay this bill??

I am having a moral dilemma and just want to hear from some people.