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a07l17
Guest
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Post subject: Need Help with Deed in Lieu |
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| I am the co-owner of a property that has gone into foreclosure. I haven't lived in the property for a year and a half, however the other owner remained in the home. The other owner has now filed Chapter 7 Bancruptcy and included the house. I want to do a Deed in Lieu b/c the property is still in my name and I cannot pay for it. What do I need to do, and what effect will it have on me. |
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adonis
Joined: 22 Oct 2005
Posts: 10267
Location: ALASKA
1046.07 Dollars($)
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Post subject: |
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Hi Guest,
The other owner will have the rights to include the property in his bankruptcy filing as it will be considered as his assets. As he has already filed bankruptcy and included it in his filing, I don't think the lender will now go ahead with your deed in lieu of foreclosure request. You will only be able to proceed further with deed in lieu once the other owner is discharged of bankruptcy.
_________________
Procrastination is the enemy of your financial success |
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Bonnie Flores
Guest
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Post subject: Filing for a 1099C form? |
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| How do I file this and what can I expect as for as being taxed on the cancelled prt of the form? |
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jameshogg
Joined: 20 Dec 2005
Posts: 10164
Location: Nevada
944.24 Dollars($)
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Post subject: |
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Hi Bonnie,
You can check out the given page in order to know the information related to 1099c form:
http://www.irs.gov/instructions/i1099ac/ar02.html#d0e196
The canceled portion of the unpaid debt is treated as your income by the Internal Revenue Service. You'll be charged taxes for that unpaid debt amount.
Thanks |
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Freeman's
Guest
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Post subject: lost hme in "deed in lieu" |
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Our primary residence was lost after a job loss. It was March 2009 balance was 225,000. I never received a Form 1099 nor made any money at all on the transaction. Does it qualify for the Debt forgiveness Tax relief? How do I account for it on the Tax this year?
Pls help
Freeman's |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Post subject: |
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Hi Freeman!
Welcome to forums!
If the lender has forgiven your debts, then you would receive a 1099c form from him. I don't think you would be able to claim the Debt Forgiveness Tax Relief unless you receive that form. I would suggest you to contact your lender and ask him to send you the form and then you would be able to claim the tax relief.
Feel free to as ask if you've further queries.
Sussane |
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Angelo O.
Guest
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Post subject: 1099-C |
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Hello,
2006 I purchased my principal property for $712K put down payment of $143K and with a principal balance of $569K, I lived over a year and rented for 6 months, it was foreclosed 10/09 and the bank sold it for $360K in 12/09. a month ago my lender send me 1099-C form cancellation of debt. On box 2 the amount of debt canceled was $244K. Am I debt free? Please I need your advise.
Thank you,
Angelo O. |
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adonis
Joined: 22 Oct 2005
Posts: 10267
Location: ALASKA
1046.07 Dollars($)
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Post subject: |
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Hi Angelo,
As far as I can understand, your lender has forgiven the deficient balance resulting from the property sale. Yes, you are debt free now in regards to your foreclosed home.
_________________
Procrastination is the enemy of your financial success |
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supernanny
Guest
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Post subject: to forclose or Deen in lieu of |
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WE filed for Bankruptcy in 08 also discharged same yr, never reaffirmed on our Mortgages, we tried a Loan Mod, Indymac our lender is like talking to a wall....they wont speak to because of the Bankruptcy, and we have Tried to contact the Bk Department,again no luck. We are out of Options.
to Short sell? Forclose? or Deed in lieu of FOrclosure????? and can we have it w/o Recourse? HELP!!!! This is all Confusing!!! We also live in Michigan, jobs here are scarce. |
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Anna C
Guest
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Post subject: |
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| My mother has passed away and her residence in CA is ready to be forclosed on. The bank accepted a shout sale, but the buyer dropped out because it took so long. Time is running out on short sale approval and I don't have another buyer yet. Should I try to do a DIL instead of forclosure if I can't short sale? Their is a purchase money mortgage existing on property as well as a 2nd. Please advise if their the first and second will be fully forgiven and if their are any tax ramifications as debtor is no longer with us. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Post subject: |
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Hi!
Welcome to forums!
To supernanny,
Your bankruptcy filing has been discharged and you haven't reaffirmed the mortgage as well. In that case, if the property is foreclosed by the lender or if it goes for a short sale, the lender will not be able to come after you for the dues. I would suggest you to contact your lender and inform him that your bankruptcy has been discharged and you want to get rid of it. I hope the lender will help you.
To Anna,
You can always apply for a deed in lieu of foreclosure in order to avoid foreclosure. Both the mortgage lenders have to agree for the deed in lieu of foreclosure. If the property is sold off at a lower amount, the first lender may not come after you for the deficient balance, but the second lender will come after you for mortgage payments.
Feel free to ask if you've further queries.
Sussane |
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Spinner42
Guest
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Post subject: Deed-in-lieu of foreclosure |
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| Can a rental property be applicable in this deed-in-lieu of foreclosure? |
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jameshogg
Joined: 20 Dec 2005
Posts: 10164
Location: Nevada
944.24 Dollars($)
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Post subject: |
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Hi Spinner,
A rental property can go for deed in lieu of foreclosure. However, the deficient balance resulting from the sale of the property may not be forgiven.
Thanks |
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MarkTallahassee
Guest
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Post subject: 3 Liens Question |
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| Hi, my wife and I got down payment assistance in Florida. We received 2 $10,000 loans to help with down payment from the local city and county governments respectively. We also have a $93000 loan from US Bank. If we do a short sale, deed in lieu of foreclosure, or just walk away and allow the foreclosure, what happens to those extra mortgages? What should we do? |
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MarkTallahassee
Guest
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Post subject: Hello? |
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| I asked a question and noticed that many have responded the same day about their questions, can someone please help? |
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