Posted on: 06th Mar, 2012 05:51 pm
Can someone please explain to me my responsibility/obligation...My rental house was foreclosed July of 2011...received a 1099A from the first lender, outstanding balance of $260,000 and fmv is $180,000. Property was sold Jul'2011 at auction for $166,000. 2nd mortgage..balance principal outstanding $483.00 and fmv is $1,690.00 and box 5 states borrower was not personally liable for repayment of debt. How much do I owe? How much taxes do I have to pay? Just would like to have an idea..Thanks.
Hi Burke,
If the box 5 states that you were not personally liable for the mortgage payments, then you don't owe any debts to the lender. As the Mortgage Forgiveness Debt Relief Act is still in vogue, you won't have to pay taxes for the forgiven amount.
Thanks
If the box 5 states that you were not personally liable for the mortgage payments, then you don't owe any debts to the lender. As the Mortgage Forgiveness Debt Relief Act is still in vogue, you won't have to pay taxes for the forgiven amount.
Thanks
Hi Burke!
Welcome to forums!
I agree with James. As it states that you're not liable for any further payments, you won't have to worry about it. You won't be liable for any payments to the lender. However, forgiven debts may lead to taxes but as the debt forgiveness act is available till 31st December, 2012, you won't be liable for paying taxes even.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I agree with James. As it states that you're not liable for any further payments, you won't have to worry about it. You won't be liable for any payments to the lender. However, forgiven debts may lead to taxes but as the debt forgiveness act is available till 31st December, 2012, you won't be liable for paying taxes even.
Feel free to ask if you've further queries.
Sussane