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My house has gone through foreclosure and currently I am one month away from the end of the redemption. I have no plans to stay in the house and will be "walking away". I rec'd a 1099-A acquisition of/abandonment of property, but no 1099-C. Current amt owed was $149,000, but the lender bought at foreclosure for $105,000, well below what a local realtor would've appraised at. Did I not receive a Cancellation of Debt (1099-C0 because I am not through the redemption period? Or am I to assume my lender is coming after me for the $35,000. Also, i filed bankruptcy (Chapt 7) in Dec '08 and am due to be discharged in March 2009, redemption ends April 2009. Can my lender hold me responsible for the $35,000 if i'm currently in bankruptcy? He can't wait till I've been discharged then come after me for it can he?

adonis · Posted: Fri Feb 20, 2009 1:13 am Post subject:

Hi lefsschu,

As far as I know, in a foreclosure, the deficient amount resulting from the sale of the property is not forgiven by the lender. So I don't think you will be receiving a 1099-c form.

As you are still in the redemption period, so I think you have received the 1099A form. In my opinion, the lender will demand the $35,000 that you owe him. Moreover, if you reaffirm your mortgage after discharge and pay him the amount, it will have a positive effect on your credit report.

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