Posted on: 08th Mar, 2009 05:36 pm
I am facing a foreclosure in the state of Arizona. Last year the home appraised for $185,000 and currently real estate comps are priced at $60- 70,000. I am trying to the best of my ability brace for all the ramifications that will result from this. I know my loan has PMI on it, and I know that Arizona has anti deficiency laws in place. My question would be can the lender still issue a 1099 for the difference of loan value vs sale price.
Hi lilmonte!
Welcome to forums!
In a foreclosure sale, you are liable to pay the deficient amount. If you have a PMI, then the deficient amount will be covered under the insurance. As you will be liable to pay the deficient amount, I don't think the lender will issue a 1099-c to you. If the deficient amount is forgiven, then the lender may issue a 1099-c.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
In a foreclosure sale, you are liable to pay the deficient amount. If you have a PMI, then the deficient amount will be covered under the insurance. As you will be liable to pay the deficient amount, I don't think the lender will issue a 1099-c to you. If the deficient amount is forgiven, then the lender may issue a 1099-c.
Feel free to ask if you have further queries.
Sussane