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"Double Billing" Bill Heads to the Senate


A bill making its way thru Salem hopes to crack down on banks that claim a loss after a short sale and collect the money later from the borrower. Some people in that position are getting "double-billed" in a way and State lawmakers are trying to stop that. What has happened to some people is they get a 1099 from the bank that claims a loss, so income taxes are owed on that amount. But then, the bank comes in later and sues the prior homeowner for the money owed to them, after they've paid the taxes. Jason Conger says a House Bill makes the bank chose one option and not do both: “A bank still has the right under the contract unless they waive it to try to collect the residual debt from the borrower and this bill prevents the bank from reporting it as income to the borrower and trying to collect the debt.” Conger says to his knowledge this practice isn't very widespread,- but definitely needs to be dealt with. It now moves to the Senate.

 

 

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