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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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Welcome downeysr,
You are not liable for paying any deficient balance to the lender. But as far as I know, you may have to pay taxes for the deficient balance that is forgiven as it will be considered as your income.
_________________
Procrastination is the enemy of your financial success |
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Nina
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Post subject: Charge off (2nd mortgage) |
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Hi Jessica,
I have few doubts and since I have read very interesting articles written by you I guess you might have the answer.
I've been in my home for 10 years. On 2007 the original value of the property went from 80,000 to 160,000 (USD) so I requested a loan for about 110,000 from the equity to start my own business. The business didn't work and I ended up broke and with debts everywhere. I had a very good credit before, after this it went down of course. I have a lot of debts and i've been thinking about to file for bankrupcy, it is a difficult decision for me. The point is that I requested a modification for both loans (the original and the equity one) the first was approved but the second appears as a charge off (probably because the property value now is less than the first loan around $50,000). A collection company has been trying to get in contact with me to collect the 110,000 giving me options to pay. My first question is: Do they still have the power to take my home (by the way both loans were from chase bank). and second Do I qualify for the Mortgage relief Act of 2007?
Thanks for your help. |
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BrokeLady
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Post subject: Is this consider my primary residence |
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| I lost my job at the begining of Jan 2011, so I rented out my house, it is now nov. 2011 and my tenant is moving out and I am moving back in. I can not keep up with the payment and I want to do a deed of Lieu. For tax forgiveness, is this consider my primary residence? I have owned the condo since 2001 and never rented. |
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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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gibert
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Post subject: foreclosed 80/20 loan, az |
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Hi there,
I was foreclosed in Oct. 2010 and got a 1099a for the first for 190k. My second, worth 50k got charged off. My lawyer tells me that I'm not liable for both loans since I'm in a no recoarse state and that both loans were secure by the home. Do I still get a 1099c for both loans? and if I get the 1099c after 2012, do I get taxed or the charged off debt will be forgiven since the date of foreclosure was in 2010? |
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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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Post subject: |
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Welcome gibert,
Though you are not liable for paying off the loans, you may get 1099c forms from your lender. This is because, the lender is forgiving the deficient balance which you had to pay. You may have to pay taxes for the forgiven debt.
_________________
Procrastination is the enemy of your financial success |
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JUL1970
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Post subject: FORM 1099A |
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| I RECEIVED A 1099A- I WAS DIVORCED 2 YRS AGO. MY EX GOT THE HOUSE IN THE DIVORCE AND THEN LET IT GO. HE NEVER TOOK MY NAME OFF OF THE MORTGAGE. AM I RESPONSIBLE. THE OUTSTANDING BALANCE IS $175,957.65 AND FAIR MARKET VALUE IS 99000. WhaT DOES THIS MEAN??? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10439
Location: Alaska
985.83 Dollars($)
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beljoy
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Post subject: complicated situation |
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| we bought our home in 1999 for $64,000. we moved (military) in Aug 2004 and put the house on the market. we started renting it out in feb 2005, and the renter stayed in until may 2009. unfortunately, she left the property in horrible condition and we were unable to make the extensive repairs. listed the house for sale in sep 2009, and after being unable to pay the mortgage for several months initiated the deed in lieu of foreclosure in feb 2011. it was finalized in july 2011. we had a VA loan, and it looks like (per the online account information, which we still have access to) the VA paid most of the principal (paid around $55000, with $800 remaining). the house has not been sold by the bank-- it's not even on the market (again) yet. what might we be looking at tax-wise? |
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| Consult a tax adviser and take his/her opinion in this regard. |
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yulanda
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Post subject: |
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| I lost my home the end of 2009. I have to still pay taxes on the house |
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smithsussane
Joined: 18 Sep 2008
Posts: 10439
Location: Alaska
985.83 Dollars($)
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Hi yulanda!
Welcome to forums!
If you lost your home to foreclosure and if the lender had forgiven the deficient balance, then you will be liable for paying taxes on that forgiven debt to the IRS. The forgiven debt will be considered as your income.
Feel free to ask if you've further queries.
Sussane |
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randy hurst
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Post subject: taxes |
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| i had a house fire and lost everything i had a tv finace threw dell insurance only payed half of want i owed and dell forgave the rest got a tax paper saying dell turn in 1100.00 dollars as a lost how much taxes will in have to pay on the 1100.00 |
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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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Post subject: |
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Welcome randy,
You should contact a tax adviser and he will let you know how much tax you will have to pay for that forgiven debt.
_________________
Procrastination is the enemy of your financial success |
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Ronnie
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Post subject: Exempt from tax on short sale |
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| I live in Pennsylvania, in 2009 I lost my home in a short sale (not foreclosure ). The bank jacked up fair market value to $200,000. Leaving me in $30,000 in canceled debt. Filed for solvency at h&r block, tax master said I would be fine. Find out that the state of Pennsylvania still wants the "taxable income". As for federal and local they forgave the tax. What are my option(s) now for the state. Please help as I do not gave the income. |
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