My understanding is that profits made at auction are passed on to the initial homeowner/borrower. Does this apply if the house does not sell at auction, becomes officially bank property, and sells, say, years later? I hear a 1099 can be issued for the loss if there is a short-sale of a REO. So does a double standard exist here?

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This entry was posted on Saturday, April 24th, 2010 at 3:57 pm and is filed under Bank Owned REO. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.