[CLBS] fannie mae loan/short sale

[Catherine Dullea]

Dear Listmates:
I have some friends who are selling their home on a short sale.  They have
one home loan with Seterus, guaranteed by Fannie Mae.  Seterus had agreed in
writing that it (not necessarily the feds) will execute a release and
discharge of the mortgage, including any deficiency balance.  Fannie Mae
allegedly approved the settlement, but Fannie Mae is not signing the
settlement agreement, which is solely between Seterus and its borrowers.  We
are well aware there may be a 1099, and I understand that the moratorium on
charging taxes for forgiven debt has expired and congress is not doing
anything with it right now (maybe waiting until elections are over), so a
big potential tax hit.  But our concern is whether the feds can come after
the borrowers for the deficiency of $90,000.

--Katie Dullea