Posted on: 28th Jan, 2010 09:31 pm
I foreclosed on a house and am now receiving a 1099a form. What does this mean? And how much am I going to have to pay?
Hi mcme,
If your house was foreclosed and there was a deficiency from the sale of the house, the lender is required to report it to the IRS. They send you the 1099A form for the deficiency. But it does not necessarily mean if the debt has been forgiven by the lender. The lender can still come after you to recover the balance on the loan. If the lender forgives the deficient amount, they will send you a 1099C form. Contact your lender and find out if they intend to collect the deficiency from you. If they say no, ask them to provide you with written documents stating they have forgiven the debt and will not come after you for it.
If your house was foreclosed and there was a deficiency from the sale of the house, the lender is required to report it to the IRS. They send you the 1099A form for the deficiency. But it does not necessarily mean if the debt has been forgiven by the lender. The lender can still come after you to recover the balance on the loan. If the lender forgives the deficient amount, they will send you a 1099C form. Contact your lender and find out if they intend to collect the deficiency from you. If they say no, ask them to provide you with written documents stating they have forgiven the debt and will not come after you for it.