Posted on: 22nd Mar, 2011 11:21 am
my realtor said my condo was foreclosed on Feb 14,2011, so no short sale & i do not know whats gonna happen next.He just said im gonaa get IRS form 1099. My concern is : will the bank/lender send me documents/paperworks "after a forclosure" proceedings.Im almost sure I have a deficiency. Pls advise.Thank you.
Welcome sucala,
After the foreclosure is over, you will receive 1099 forms from the lender. If there is a deficient balance and if you receive a 1099c form, then it means that the lender has forgiven the dues and you'll be liable for paying taxes. However, as the Mortgage Debt Relief Act is still in vogue, you won't be liable for paying taxes on the forgiven balance.
After the foreclosure is over, you will receive 1099 forms from the lender. If there is a deficient balance and if you receive a 1099c form, then it means that the lender has forgiven the dues and you'll be liable for paying taxes. However, as the Mortgage Debt Relief Act is still in vogue, you won't be liable for paying taxes on the forgiven balance.
thnx adonis :wink: but would u recommend me to call my lender to know my stand after the foreclosure,bec im anxious if my deficiency was forgiven or not. as of now havent received 1099 yet.
Hi sucala,
You can call up your lender in order to know whether or not you'll be liable for paying off the deficient balance. If your debts have been forgiven, then you'll receive the 1099c form.
Thanks
You can call up your lender in order to know whether or not you'll be liable for paying off the deficient balance. If your debts have been forgiven, then you'll receive the 1099c form.
Thanks