donating a house

this is absurd, wanda. how are you planning to donate a house that has two liens on it to anyone, let alone a non-profit. you have no rights to do so. in order for you to transfer title to a home, you must pay off any liens on the property - in other words, the first and second mortgages will be looking for payment in full.

guess who they're going to call? yes, indeed, it will be you. not only that, but no intelligent recipient of a "donated home" is going to act as if you've handed over cash and say thank you. the organization has no desire to obtain properties that are essentially worthless to them.

to answer your question: i suppose the answer is that you will not receive a 1099. instead, you will be asked to repay the debt immediately and at some point, you could be hauled into court on a fraudulent transfer charge, i suppose.

is this some kind of new scam that someone came up with to help people avoid paying their mortgages?

if i come across as too harsh, please forgive me. it's too early in the year for foolishness to appear before my eyes, i'm afraid.