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My house was foreclosed. The bank bid full price at the sheriff auction. It is my understanding the the bid at auction is FMV. Since the difference between my loan blalance and FMV is zero, am I likely to receive a 1099A or C?

smithsussane · Posted: Wed Sep 08, 2010 9:49 pm Post subject:

Hi Anna!

Welcome to forums!

If there was no deficient amount resulting from the property sale and no balance was forgiven by the lender, then you will receive a 1099a form from the lender. The lender will send you a 1099c form if he forgives any deficient balance.

Feel free to ask if you've further queries.

Sussane

Guest

Thank you Sussane. Since the FMV and the loan balance difference will be zero, I will not owe any taxes with a 1099a correct?

Also, when calculating insolvency, does the amount of the loan being forgiven count as a liability?

thanks again

adonis · Posted: Thu Sep 09, 2010 10:10 pm Post subject:

Welcome Anna,

As the balance amount is zero, you won't be liable for paying taxes. The forgiven debt will not be considered as your liability while calculating insolvency.

Guest

Thank you for the information. I appreciate your help

adonis · Posted: Sun Sep 12, 2010 10:19 pm Post subject:

You're welcome, Anna! Smile

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1099 A or C