video1.0<iframe src="https://www.loom.com/embed/a91c4066f3f74e2e941f6fd2c9d44d97" frameborder="0" width="1108" height="831" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>8311108Loomhttps://www.loom.com8311108https://cdn.loom.com/sessions/thumbnails/a91c4066f3f74e2e941f6fd2c9d44d97-99ff609f1272b13c.gif355.091This Loom explains whether lenders send a 1099 for debt forgiven during a short sale and how a waiver of deficiency affects that. The speaker says the lender will base the forgiven amount on its market-value appraisal, and the difference can create a 1099 unless a waiver of deficiency is obtained. They note that some lenders will not issue a waiver, but even if a property forecloses, a 1099 would still be issued for the remaining deficiency. The speaker shares that they have handled over 700 short sales and in over 80 percent, clients did not receive a 1099, and when it did occur the resulting tax was often negligible, advising to consult a CPA for tax impact.