FNMA v. Jones
Sep 15, 2015OUTCOME: Successfully resolved
Client and his business partner purchased a 300 + unit apartment complex. They both lacked the experience and financial capital required for success. The business floundered and FNMA sued for the app ... ointment of a receiver and foreclosure on their 1.5 million dollar mortgage. The court ordered the appointment of a receiver and gave judgment to FNMA for $1,500,000.00 against both owners. FNMA "sold" the debt to a private party. After 6 months of negotiations and based on a complete understanding of the client's financial picture and truthful and frank discussions with the attorney for the creditor, the debt was resolved for a one time payment of $20,000.00, a 1.333% settlement. Please note that the client was 1099'd for the difference and required the services of a knowledgeable CPA to avoid the income tax consequences of the $1,480,000.00 of unpaid debt.
