All Forum Posts by: Don Corson

So, in those states, the bank would always do a 1099? I just can't imagine that the lender would just let that kind of loss go, but I understand well that they are now bogged down w/ many non-performing assets that they need to get off the books.

EagleOne-
I would recommend using iTunes, and subscribing to several Real Estate Investing Podcasts: Get Real w/ the Voss's, Larry Goins Brain Pick a Pro, Real Life Real Estate Investing w/ Vena Jones Cox, Real Estate Investing w/ REI Club. Once you do, you should be able to get shows on whatever subject is of most interest to you. There was one on Larry Goins w/ Graham Treakle that had lots of good info -- if you do a Google search for Graham Treakle, you will see some other downloadable audio out there.
You won't find any step-by-step, answer all your questions type of audio out there -- most are gurus that are trying to sell you there system.
Hope that helps.

When doing a short sale, what would be better for the distressed seller to do (better for THEIR financial future, not the investors) -- get a 1099 from the lender now, or deal with the deficiency later?
It always depends on their situation, but here might be a common example:
John buys new home from builder in 2004 for $180k, 100% financing. Loses his job today, gets several months behind on payments. Tries to sell the house, but market value on this house is now $150k. Joe Investor comes in and offers to take care of his problem, and negotiates with the lender to buy for $130k.
Now, I have heard from various gurus say that the lender will waive the 1099 or the deficiency judgement, but not both -- is that correct? If so, wouldn't it be better for John to just owe the IRS for the income tax on that $50k vs. have the lender waiting in the wings to attach a judgement, just when John is trying to get back on his feet?

Thanks for the feedback -- as a follow-up, is there a rule of thumb for what to offer, such as a certain percentage of the ARV? I didn't mention that the home is in a decent, established neighborhood, in a good school district. There are many new-build neighborhoods in Central Ohio where the every other house has a for sale sign on it, and many w/ HUD stickers in the window -- this is not one of those neighborhoods...

Newbie possibly looking to do first pre-foreclosure deal -- would like some feedback. I've been reading the forum, and reading up on the subject for the past many months, so I know enough to be *dangerous*...
Here are the details. Friend of my wife's, in early stages of foreclosure. Owes about $101k, 7 months behind on payments (which would equal about $6500). House would retail for $140k, and needs about $7k-10k in work to get it there. With that amount of equity, would Countrywide accept less than the balance owed, considering this person cannot make the payments, and wants to walk away from the house?
If so, what would be a rough idea of what they might take? I know I would have to paint a bleak picture of the circumstances for them...
I want to do right by my wife's friend, and hopefully be able to put some $ in her pocket. Foreclosure sale has not been set on sheriff's record, but she said it is in June...

Thanks in advance for some knowledgable feedback!

Don