Posted on: 12th Jun, 2010 08:51 am
we are trying to short sale our home and we are dropping and dropping the price because of the market and now the oil crisis in gulf. we are now $200,000 below what we owe. do i have any way of getting out of the 1099-c? what can you tell us. my husband owns his own company, two years ago, i became disabled and we have been struggling for quite some time. we modified our loan twice and we just can't hang on anymore. now, knowing we are going to have a huge tax liability is not making things any better . we do not qualify for the debt forgiveness act since we used refinance monies to purchase undeveloped land for our "future retirement" home.
It will be completely the lender's discretion whether or not he will forgive the deficient balance and give you a 1099c form. You will have to negotiate with the lender regarding the same.