Posted on: 09th Jun, 2010 12:34 pm
Bank approval DIL for my mortgage of $70.000 but they requiring contribution fee $5.000 And in same time they said--Please note that there may be deficience after the property sold and 1099c will be reported So is this is rigtht If i dont have money so Thank you in advance
from my understanding they can 1099 you for the difference of what your property is selling and what you actually owe... so if you owe $100 they will 1099 you for the remaining $30,000.00. Depending on the lenders they are treating it as income...
Hi home,
In a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. The forgiven dues are then reported to the IRS and it will be considered as your income. Depending the Mortgage Debt Relief Act in your state, you won't have to pay taxes on the forgiven debt.
In a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property. The forgiven dues are then reported to the IRS and it will be considered as your income. Depending the Mortgage Debt Relief Act in your state, you won't have to pay taxes on the forgiven debt.