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Short Sale - Havent received 1099-C yet for difference.

Posted on: 09th Feb, 2009 12:41 pm
Hello, I short saled my house on Dec 24th 2008 and it got recorded on the same date. I got a letter from my bank saying that my account is paid in full and closed. Will I be expecting 1099-C for the difference. I have savings acct also with the same bank.
I got my 1099-INT form and then the 1098 form for paid mortgage, but did not receive any 1099-C for cancelled debt.
Wondering if they are going to issue me with 1099-C. If so, should I have gotten it already. Should I check with the bank on this? Is it mandatory to send this form in all cases of short sale?
Any suggestions?
i have been trying to sell my house since last august. i had 1 offer, but my mortgage co said it was too low and on top of that they wanted my husband and i to pay back $47k back due to a refinance where we had paid $30k in credit card debt and cashed out $17k. so, we lost the 1st buyer because we couldnt afford to pay that back. we then received another offer for $15k more than the 1st offer, but we lost that buyer as well for the same problem. i am trying to short sale my home before it forecloses. what is the best solution here?
Posted on: 04th Aug, 2010 01:10 pm
Posted on: 05th Aug, 2010 03:15 am
Thank you Sara..I am writing a letter to the Circuit Judge who is handling the case and will ask for that as well.
Posted on: 09th Aug, 2010 08:27 am
We are in our mid 60's and 4 yrs ago purchased our son's home when he was ill and his ARM came due. Our son did pass away in 2009. Our scores were in the 800 +, we have never had a late payment on our mortgage or other credit obligations. We just received a 1099-C for $110,480.00. We do not have a lot of assets etc and with the housing market we are underwater in our primary residence. Do you think we will have a substantial amount of taxes to pay on the deficiency?
Posted on: 02nd Feb, 2011 12:29 pm
Hi Jan!

Welcome to forums!

As the deficient balance was forgiven, it will be considered as your income by the IRS. However, depending upon the Mortgage Debt Relief Act, you won't be liable for paying taxes on the forgiven debt.

Feel free to ask if you've further queries.

Sussane
Posted on: 02nd Feb, 2011 10:49 pm
hi! i shortsale my house in 2010. i received 1099c last year, but until now i did not received 1099c from my second mortgage. i called the bank but they told me that they have five tears to send the 1099 and according to them they may or may not send me a 1099 my question is..a) can i file form 982 even if did not received 1099c uet for the second mortgage?i received full reconveyance and deedof release from both banks (first and second mortgage)
Posted on: 15th Feb, 2012 03:58 pm
Welcome gina,

If you did not receive a 1099c form, it may mean that you're liable for paying the deficient balance resulting from the short sale of the property. Nevertheless, you can contact a tax adviser and check out whether or not you can file form 982 though you haven't received the 1099c form.
Posted on: 16th Feb, 2012 10:38 pm
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