Posted on: 12th Jul, 2010 04:22 am
i keep seeing on line that a deed in lieu stops you from having to owe a deficiancy. how come one of the people keeps saying make sure they don't have a deficiency on the deed in lieu. I thought it was a given especially if they give you a 1099. also how long does it take to do a deed in lieu once you hve the complete paperwork in and a pbo in.
hi donnaattuscany!
welcome to forums!
in case of a deed in lieu of foreclosure, the lender forgives the deficient balance resulting from the sale. this forgiven debt is considered as your income and a loss on part of the lender. thus, the lender sends you a 1099c form to file with your tax returns. however, as the mortgage debt relief act is still in vogue, you won't be liable for paying the taxes on that amount. a deed in lieu may take around 90 days to complete.
feel free to ask if you've further queries.
sussane
welcome to forums!
in case of a deed in lieu of foreclosure, the lender forgives the deficient balance resulting from the sale. this forgiven debt is considered as your income and a loss on part of the lender. thus, the lender sends you a 1099c form to file with your tax returns. however, as the mortgage debt relief act is still in vogue, you won't be liable for paying the taxes on that amount. a deed in lieu may take around 90 days to complete.
feel free to ask if you've further queries.
sussane
What type deed? It varies in different states.
Is this a tax deed?
Tom Hines
Property Tax Default Specialist
[Email address deleted as per forum rules. Thanks.]
Is this a tax deed?
Tom Hines
Property Tax Default Specialist
[Email address deleted as per forum rules. Thanks.]