Posted on: 29th Jan, 2009 08:28 pm
I had a foreclosure 5/08, I recieved a 1099-A form. The balance of principal outstanding is $148,000 and the fmv is $165,000 and I a liable for pepayment of debt. This was my primary residence. Will I have a gain or loss when I file my taxes?
Also, I did not receive a 1099-c but I believe because the fmv exceeds the outstanding principal I will not receive one.
Any help would be appreciated.
Thanks
Also, I did not receive a 1099-c but I believe because the fmv exceeds the outstanding principal I will not receive one.
Any help would be appreciated.
Thanks
I received this after I filed taxes last year and was wondering what I am to do with it. My balance was 163,748.22a and the FMV is considered 50,000 if I am reading the rest of these posts I owe for the 113,748.22 in taxes
Hi James!
Welcome to forums!
I guess your property was foreclosed and your lender did not forgive the deficient balance. So, you received 1099A form. In such a case, you will be liable for paying the deficient balance to the lender. If the lender had forgiven your debts and sent you a 1099c form, then you would have been liable for paying taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I guess your property was foreclosed and your lender did not forgive the deficient balance. So, you received 1099A form. In such a case, you will be liable for paying the deficient balance to the lender. If the lender had forgiven your debts and sent you a 1099c form, then you would have been liable for paying taxes on the forgiven debt.
Feel free to ask if you've further queries.
Sussane
Hi. Our house was foreclosed on in July 2011. They sent it to an auction at the court house where the mortgage company bought it. They put it up on the market after that. We haven't heard anything from them until we got a 1099a in the mail. On the 1099a our loan value is 123,000 and the FMV is listed at 172,000. The box is checked yes for borrower responsibility. We are trying to figure out what this means for our taxes. I was thinking we were going to get a 1099c, not a 1099a, so now we are completely lost as to what to do. Any advice would be appreciated. Thanks!
Hi Michelle!
Welcome to forums!
You are personally liable for paying the mortgage debts as the box 5 is checked. You need to pay the deficient balance to the lender. Once you pay off the deficient balance to the lender, you won't be liable for paying any taxes to the IRS. You won't receive a 1099c form as your debts haven't been forgiven by the lender.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You are personally liable for paying the mortgage debts as the box 5 is checked. You need to pay the deficient balance to the lender. Once you pay off the deficient balance to the lender, you won't be liable for paying any taxes to the IRS. You won't receive a 1099c form as your debts haven't been forgiven by the lender.
Feel free to ask if you've further queries.
Sussane
Okay, so does that mean that it isn't going to effect our taxes and tax return?
Hi MichelleL,
If you pay off the deficient balance to the lender, then it won't affect your tax return in any way.
Thanks
If you pay off the deficient balance to the lender, then it won't affect your tax return in any way.
Thanks
Bank forclosed on primary residence for less than amount owed,FMV is less than amount owed. Had one 30 yr. fixed mortgage on home. Was sent 1099a form. I sent my tax forms out for the year already, before receiving form.What do I need to do next?
Hi j.olson!
Welcome to forums!
You need to check the 1099a form to find out whether or not you're liable for paying the deficient balance to the lender. If yes, then you won't be liable for paying the taxes. Rather you will have to pay the deficient amount to the lender. If your debts has been forgiven by the lender and if you receive a 1099c form, then you will be liable for paying taxes for the forgiven debt to the IRS.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You need to check the 1099a form to find out whether or not you're liable for paying the deficient balance to the lender. If yes, then you won't be liable for paying the taxes. Rather you will have to pay the deficient amount to the lender. If your debts has been forgiven by the lender and if you receive a 1099c form, then you will be liable for paying taxes for the forgiven debt to the IRS.
Feel free to ask if you've further queries.
Sussane
Hello, I live in CA. My bank foreclosed on my primary house in Feb 2011. They said they will send a 1099-A statement but not a 1099-C statement. Since CA law states they cannot pursue a deficiency for a foreclosure, does that mean I do not have to worry about getting a 1099-C statement? For tax purposes in 2012, do I still have to fill out a 982 form?
Thank you,
Miguel
Thank you,
Miguel
Hi Miguel,
If the lender cannot pursue a deficiency judgment, then he will forgive the deficient balance. Once he forgives the deficient balance, then you will receive the 1099c form. And you will be liable for paying taxes for that forgiven amount. In that case, you may have to fill out the 982 form.
Thanks
If the lender cannot pursue a deficiency judgment, then he will forgive the deficient balance. Once he forgives the deficient balance, then you will receive the 1099c form. And you will be liable for paying taxes for that forgiven amount. In that case, you may have to fill out the 982 form.
Thanks
I received a 1099a today for the year 2011 I did a deed in lieu. My principal balance is 27000 more the FMV. box 5 was not mark. the house was in fl but I live in tx. Do I need to file something with my 2011 taxes and do you think I will get a 1099c later.
Welcome Bogglenow,
The lender had forgiven the deficient balance resulting from the deed in lieu sale of the property. Moreover, depending upon the Mortgage Forgiveness Debt Relief Act, you won't be liable for paying any taxes on the forgiven debt amount. Nevertheless, you should contact a tax adviser and take his opinion in this matter.
The lender had forgiven the deficient balance resulting from the deed in lieu sale of the property. Moreover, depending upon the Mortgage Forgiveness Debt Relief Act, you won't be liable for paying any taxes on the forgiven debt amount. Nevertheless, you should contact a tax adviser and take his opinion in this matter.
My home was foreclosed and I received a 1099a from the lender. The balance of the loan was $274,000.00 and the bank purchased the home for what they said was FMV of $212,000.00. Zillow lists the house for $474,900.00. The bank owns the home and has not resold it to date. How does this affect me??
Welcome Guest,
Unless the foreclosure sale is complete, it will remain in your credit report and you won't be able to qualify for any other type of loan. You should contact your lender and ask him to sell off the property asap so that you can get rid of the property.
Unless the foreclosure sale is complete, it will remain in your credit report and you won't be able to qualify for any other type of loan. You should contact your lender and ask him to sell off the property asap so that you can get rid of the property.
I sold my condo for less than what is was worth in July 2012. I owed 124.000K but was approved to short sell it for 54,000K and recived a letter for my company Mortgage saying that I would not have any deficient balance. I filed bankruptcy in Sept. of 2012 and my condo was inculded any way,the backruptcy was discharge in Dec. of 2012. Will I have to pay any taxes on the forgiven deficient, I have not received a 1099c from my Mortgage co.