Posted on: 08th Jun, 2010 05:56 pm
I have a home in WV. Is it better to foreclose or do a deed in lieu (primary residence)? Can you negotiate ahead of time with the mortgage company for a 1099C?
Hi Guest,
It's always better to go for a deed in lieu of foreclosure. This will not only help you in selling off the property but you won't be liable for the deficient balance even. Thus, you will receive a 1099 c from the lender. If the property is your primary residence and if the Mortgage Debt Relief Act is in vogue in your state, then you won't have to pay the taxes for that deficient balance.
Thanks
It's always better to go for a deed in lieu of foreclosure. This will not only help you in selling off the property but you won't be liable for the deficient balance even. Thus, you will receive a 1099 c from the lender. If the property is your primary residence and if the Mortgage Debt Relief Act is in vogue in your state, then you won't have to pay the taxes for that deficient balance.
Thanks