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D.I.L. 1099 or full foreclosure?

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gilmore Guest	Posted: Mon Aug 18, 2008 3:26 pm    Post subject: D.I.L. 1099 or full foreclosure? Like 0 Dislike 0 i'm between a rock and a hard place........if the bank accepts a D.I.L. on my second home (150k bank loss) will I get hit with a 1099 and have to pay taxes? If that is the case should i follow the advise of others and go for a full foreclosure, avoid a tax hit and hope they dont seek a deficiency judgment. What are the odds in Florida after i default on my second home? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
jenkin7 Joined: 04 Jun 2007 Posts: 4537 Location: Hawaii 728.43 Dollars($)	Posted: Tue Aug 19, 2008 2:13 am    Post subject: Like 0 Dislike 0 Hello gilmore. Welcome to the forums. If the mortgage company accepts the deed in lieu then they will not demand the deficiency judgment but it will have a negative affect on your credit report. Even you need not to pay tax to IRS because of the Mortgage Debt Forgiveness Act. But if you consider foreclosure then the lender will come after you for the deficiency judgment and you will also have the negative affect on the credit report. Feel free to ask the community if you have further questions.

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