1099-C - investment property

sgarewal · Joined: 08 Sep 2009 Posts: 1 1.68 Dollars($)

Hello All,

I am in negotiations with the bank on a short sale for an investment property in California and I heard that you can negotiate everything including not receiving a 1099-C. To my understanding if certain conditions have been satisfied then the bank will show the loan paid in full and no cancellation of debt is required, therefore a 1099-C will not be issued.
Has anyone had any success with this? If so, please explain. Thanks.

jameshogg · Posted: Tue Sep 08, 2009 11:00 pm Post subject:

Hi sgarewal,

You can definitely try and negotiate with your lender so that you do not receive a 1099c. But it's the lender's discretion whether or not he would consider your request. You would receive a 1099-c form if your debts are forgiven. If it's not paid in full, I doubt whether or not the lender would report it as "paid in full".

Thanks

Guest

I also have a property in Arizona that is in short-sale. I was told since Arizona is a non-recourse state they will not issue a 1099-C. This sounds to be false and the best course of action would be to foreclose on that property. If I let the property go into foreclosure, they will not issue a 1099-C? Can you confirm. I'm about 45 days away from closing on that one and thinking maybe I should just let it go.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

You will need a good Real estate agent who is experinaced with this and they can negotiate this with bank on behalf of you

Niicss · Posted: Thu Sep 10, 2009 2:04 am Post subject:

As far as I know, forgiveness of a non-recourse loan as a result of foreclosure does not lead to the cancellation of debt income.

All times are GMT - 7 Hours

Page 1 of 1