Posted on: 16th Apr, 2010 03:10 pm
I recently went through bankruptcy because I was going to lose my investment property. I now have lost my job and cannot pay my mortgage. I asked my attorny to reopen my bankruptcy and add my primary home. Would I do better to allow forecloser?. My tax professional said I would recieve a 1099 a or c , cancellation of debt and the bank would have no recourse.I do not plan to take action with my bank as theuy have been of no help through the loss of my rental property and now my primary home. Please advise.
Scott Mondro
thanks
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Scott Mondro
thanks
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Hi ordnoms,
You'll have to check out with your bankruptcy attorney whether or not you would be able to reopen your bankruptcy and add your mortgage in it. If not, then you should apply for a deed in lieu of foreclosure with your lender. This will not only help you in getting rid of the property but you won't be liable for the deficient amount as well. As far as the taxes are concerned, as per the Mortgage Debt Relief Act, you won't be liable for the tax payments.
Take care.
You'll have to check out with your bankruptcy attorney whether or not you would be able to reopen your bankruptcy and add your mortgage in it. If not, then you should apply for a deed in lieu of foreclosure with your lender. This will not only help you in getting rid of the property but you won't be liable for the deficient amount as well. As far as the taxes are concerned, as per the Mortgage Debt Relief Act, you won't be liable for the tax payments.
Take care.