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being sued for deficiency

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dtinks65 Joined: 13 Apr 2010 Posts: 1 1.40 Dollars($)	Posted: Tue Apr 13, 2010 4:56 am    Post subject: being sued for deficiency Like 0 Dislike 0 My home was sold at sheriff sale in Michigan. It was then bought by an individual. During the time it was being foreclosed, on three occasions I contacted the Mortgage holder about options of short sale, deed in leau, someone wanting to assume the mortgage etc.. FYI, the individual that bought the house eventually, was one that wanted to assume the original mortgage. I was told on all those occasions basically, too bad. Now the mortgage holders attorney sent a letter stating I was being sued for 56,000 that they lost from the mortgage. My wife already filed chapter 7. I have no job or assetts for them to take. Should I just play this out in court or should I contact an attorney?
Niicss Joined: 03 Oct 2005 Posts: 4770 Location: New Jersey 499.28 Dollars($)	Posted: Wed Apr 14, 2010 3:52 am    Post subject: Like 0 Dislike 0 As the property has been foreclosed by the lender, you would be liable for paying off the deficient balance. You can contact your lender and inform him about your present financial situation. It will depend upon your lender whether or not he would forgive the balance amount from the sale of the property.
valerie Guest	Posted: Wed Jun 09, 2010 4:32 pm    Post subject: How do you report paying the deficiency sued for on tax ret Like 0 Dislike 0 We personally guaranteed an investment mortgage. The corp owned the mortgage. The bank foreclosed on the investment property and sued us personally for the deficiency. Can I report that on my income tax return/
adonis Joined: 22 Oct 2005 Posts: 10250 Location: ALASKA 1043.57 Dollars($)	Posted: Thu Jun 10, 2010 1:34 am    Post subject: Like 0 Dislike 0 Welcome valerie, Have you paid off the deficiency judgment? If you've paid the deficiency, then you won't have to claim anything on your tax returns regarding income. However, if the lender has forgiven the deficient amount, then he will send you a 1099c form. The forgiven amount will be considered as your income and you will have to pay taxes on it. You can contact a tax adviser and he will help you in this matter. _________________ Procrastination is the enemy of your financial success

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