Posted on: 01st May, 2011 07:21 am
ASC ( a division of Wells Fargo) TRIED TO FORCLOSE ON MY HOME.
I CONTACTED NACA AND THEY SENT INFO TO ASC TO STOP THE FORCLOSURE.
ASC ATTEMPTED A MODIFICATION AND ASKED FOR DOCUMENTS AND A LETTER EXPLAINING WHY MY LOAN WAS IN DEFAULT.
I SENT THEM THE INFO AND EXPLAINED THAT I WAS A VICTIM OF PREDITORY LENDING AND THAT THE PERSON AND PERSONS THAT OWNED THE COMPANY THAT DID MY MORTGAGE WERE INCARCERATED FOR DOING ILLEGAL LOANS.
AFTER NO RESPONSE I CONTACTED ASC ABOUT THE MODIFICATION AND I WAS TOLD THAT I WAS NOT APPROVED BECAUSE I WAS NOT ELIGIBLE, EVEN THOUGH MY FINANCIAL SITUATION PROVED OTHERWISE.
THEY ALSO SAID THAT THEY WERE NO LONGER SERVICING MY LOAN BECAUSE THE INVESTOR ( DEUTSCHE BANK ) HAD WRITTEN IT OF AND THAT THERE WAS NO FORLCLOSURE ON MY HOME.
THIS WAS IN FEBRUARY OF 2010. I DIDNT HEAR FROM ASC OR THE INVESTOR AFTER THAT.
IN APRIL OF 2011 I RECEIVED A 1099C CANCELLATION OF DEBT
Date cancelled 12/31/2010
Amount cancelled 79,396.54
Fair market value 22,00
Also I went to the county auditor and found out that they had filed a Certificate of Release
I Know that the 1099c is a document for the IRS.
So my questions are:
1. SINCE THEY DID NOT FORCLOSE ON MY HOUSE BEFORE THE CANCELLATION OF DEBT AND THE CERTIFICATE OF RELEASE WAS FILED . CAN THEY STILL FORCLOSE OR MAKE ME MOVE OR SELL MY HOME?
2. IF I HAVE A CANCELLATION OF DEBT FROM THE MORTGAGE COMPANY AND FILE IT ON MY TAXES CAN THEY COME AFTER ME FOR THE MONEY BY SELLING MY DEBT TO ANOTHER COMPANY becuase to my understanding the cancellation releases the lien on my home?
3. SHOULD I PAY THE TAXES ON MY DEBT CANCELLATION OR TAKE ADVANTAGE OF THE Mortgage Forgiveness Debt Relief Act and possibly giving the lender a loophole to come after me again
I CONTACTED NACA AND THEY SENT INFO TO ASC TO STOP THE FORCLOSURE.
ASC ATTEMPTED A MODIFICATION AND ASKED FOR DOCUMENTS AND A LETTER EXPLAINING WHY MY LOAN WAS IN DEFAULT.
I SENT THEM THE INFO AND EXPLAINED THAT I WAS A VICTIM OF PREDITORY LENDING AND THAT THE PERSON AND PERSONS THAT OWNED THE COMPANY THAT DID MY MORTGAGE WERE INCARCERATED FOR DOING ILLEGAL LOANS.
AFTER NO RESPONSE I CONTACTED ASC ABOUT THE MODIFICATION AND I WAS TOLD THAT I WAS NOT APPROVED BECAUSE I WAS NOT ELIGIBLE, EVEN THOUGH MY FINANCIAL SITUATION PROVED OTHERWISE.
THEY ALSO SAID THAT THEY WERE NO LONGER SERVICING MY LOAN BECAUSE THE INVESTOR ( DEUTSCHE BANK ) HAD WRITTEN IT OF AND THAT THERE WAS NO FORLCLOSURE ON MY HOME.
THIS WAS IN FEBRUARY OF 2010. I DIDNT HEAR FROM ASC OR THE INVESTOR AFTER THAT.
IN APRIL OF 2011 I RECEIVED A 1099C CANCELLATION OF DEBT
Date cancelled 12/31/2010
Amount cancelled 79,396.54
Fair market value 22,00
Also I went to the county auditor and found out that they had filed a Certificate of Release
I Know that the 1099c is a document for the IRS.
So my questions are:
1. SINCE THEY DID NOT FORCLOSE ON MY HOUSE BEFORE THE CANCELLATION OF DEBT AND THE CERTIFICATE OF RELEASE WAS FILED . CAN THEY STILL FORCLOSE OR MAKE ME MOVE OR SELL MY HOME?
2. IF I HAVE A CANCELLATION OF DEBT FROM THE MORTGAGE COMPANY AND FILE IT ON MY TAXES CAN THEY COME AFTER ME FOR THE MONEY BY SELLING MY DEBT TO ANOTHER COMPANY becuase to my understanding the cancellation releases the lien on my home?
3. SHOULD I PAY THE TAXES ON MY DEBT CANCELLATION OR TAKE ADVANTAGE OF THE Mortgage Forgiveness Debt Relief Act and possibly giving the lender a loophole to come after me again
Hi gsproduct,
The lender has forgiven the debt and filed a 1099c form. Thus, they won't foreclose the property anymore. However, you'll be liable for paying off the taxes for the forgiven debt. You can speak to a tax adviser or a CPA and check out if you can take advantage of the Mortgage Forgiveness Debt Relief Act.
The lender has forgiven the debt and filed a 1099c form. Thus, they won't foreclose the property anymore. However, you'll be liable for paying off the taxes for the forgiven debt. You can speak to a tax adviser or a CPA and check out if you can take advantage of the Mortgage Forgiveness Debt Relief Act.
but is it possible or legal for them to have sold the debt and a new collector to come after me for the debt
Hi GSPRODUCT,
If the lender has already sold off the debt to a collection agency, then they won't come after you in order to recover the debts from you any longer.
Thanks
If the lender has already sold off the debt to a collection agency, then they won't come after you in order to recover the debts from you any longer.
Thanks
Im not asking if the lender will come after me?
I'm asking is it LEGAL for the lender to sell the debt and write it of at the same time.
The lender already informed me that they will not be persuing me for the property or the debt.
I'm asking is it LEGAL for the lender to sell the debt and write it of at the same time.
The lender already informed me that they will not be persuing me for the property or the debt.
Hi gsproduct!
Welcome to forums!
It is legal for the lender to write off the debt and sell it off to a collection agency. In such a situation, the lender will not come after you but the collection agency can come after you to recover the debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is legal for the lender to write off the debt and sell it off to a collection agency. In such a situation, the lender will not come after you but the collection agency can come after you to recover the debt.
Feel free to ask if you've further queries.
Sussane
The lender has issued me a 1099c.
Which to my understanding is a form to report to the IRS a loss on a debt. The lender would than recieve some type of credit for the loss.
The loss on the 1099c would be considered as income for me for which i know i would be responsible for the taxes.
the 1099c was for the WHOLE amont of the loan. I have a small bussines and from what i understood you cant report a loss to the irs and than gain income from the debt you claimed as a loss. A loss is a loss
If the debt was sold wouldnt they have to claim a loss only on the balance.
Which to my understanding is a form to report to the IRS a loss on a debt. The lender would than recieve some type of credit for the loss.
The loss on the 1099c would be considered as income for me for which i know i would be responsible for the taxes.
the 1099c was for the WHOLE amont of the loan. I have a small bussines and from what i understood you cant report a loss to the irs and than gain income from the debt you claimed as a loss. A loss is a loss
If the debt was sold wouldnt they have to claim a loss only on the balance.
Hi Guest,
The lender will issue a 1099c form only when he has forgiven the debts. It is true that you will include this in your tax filing and you may have to pay taxes on the forgiven debt. You can contact a CPA who will better help you in this regard.
Thanks
The lender will issue a 1099c form only when he has forgiven the debts. It is true that you will include this in your tax filing and you may have to pay taxes on the forgiven debt. You can contact a CPA who will better help you in this regard.
Thanks