It's not the IRS who "sends the 1099". For the lender to "write off the loss", they need to send a 1099 to the defaulter as "forgiveness of debt"... which is taxable as ordinary income.
This is the typical deadbeat excuse for bad behavior. Most of what the banks borrowed has been paid back and then some. Now time for deadbeat "homeowners" who lived beyond their means and who used their houses as ATMs to pay theirs back.
And when do the people get the sweetheart deals that the banks got? The banks and those that operate them lived way beyond their means as well. Until we see some banking thugs swinging from a tree, it's a free for all.
Big banks are perceived as "too important to allowed to fail"... maybe correct. But if so (and backstopped by taxpayer funds), they should be regulated like utilities.... limited risk, strict underwriting loan standards, higher capital and reserve requirements. That they get away with, "We'll speculate and LEVERAGE THE CRAP out of our balance sheet... knowing we're TOO BIG TO BE ALLOWED TO FAIL"... is all BULLSHIT! FUCK THE BIG BANKS... FUCK PELOSI, REID AND BARNEY FWANK... FUCK OBAMA... ESPECIALLY OBAMA, THAT PATHOLICALLY NARCISSISTIC COMMIE ASSHOLE.. (but don't get me started.. )
"The people" already got their sweetheart deals... countless loans that let them spend money they hadn't earned on sham lifestyles they never could have afforded otherwise.
On the one hand you say F*** the politicians but on the other hand, you're swallowing their populist pandering hook, line and sinker. Taxpayer funds bailed out the banks, but taxpayers also crashed the system by defaulting on millions of mortgages, credit cards and other loans.
recourse state or not, if you did a cash-out refi or took out equity (the two are basically the same thing), then the cash portion is not protected from deficiency judgments. i'd bet that the money that guy owes was from a cash-out refi
No, I'm not swallowing anybody's BS. I think all defaulters (home mortgages, CCs, whatever) should be pursued... into bankruptcy, if appropriate.