Posted on: 29th Jan, 2009 06:16 pm
I've recently foreclosed on my investment home in Houston, TX. I had two loans - US BANK 80k; CIT 20k. Before US BANK bought back the home at auction, I was getting mail from CIT saying I need to pay the past due balance of 2k and continue to pay the monthly balance. After US BANK bought the home back, I called and US BANK told me that there was no deficiencies and they have the home even though they bought it back around 20k under "no deficiencies?". I called CIT to make payments arrangements and the agent to me that my account has been "recalled?" It's been 4 months and no one has called and I haven't received any mail? The only new thing I've noticed is CIT "charging off" 18k on my credit report. I have two questions:
- Is US Bank going to send me a 1099-C for 20k for me to pay in taxes?
- I'm I also simply waiting for a collection agency to call on behalf of CIT?
So I'm worried, I'm I going to have to pay taxes on the 1099 from US BANK and deal with a thirdparty collection agency too?
It's late-Jan and I haven't gotten any calls, no 1099-C, and I'm pretty worried.
Thank you.
- Is US Bank going to send me a 1099-C for 20k for me to pay in taxes?
- I'm I also simply waiting for a collection agency to call on behalf of CIT?
So I'm worried, I'm I going to have to pay taxes on the 1099 from US BANK and deal with a thirdparty collection agency too?
It's late-Jan and I haven't gotten any calls, no 1099-C, and I'm pretty worried.
Thank you.
welcome charlie,
as the first lender has forgiven the deficiency resulting from the sale of the property, it will definitely send you a 1099 form wherein you will have to report this deficiency as an income. you will have to pay taxes on this deficient amount.
as the second lender has charged off your account to a collection agency, you will now have pay the second mortgage debts to the collection agency. as you haven't got the 1099 form, you can contact the lender once and check it out.
as the first lender has forgiven the deficiency resulting from the sale of the property, it will definitely send you a 1099 form wherein you will have to report this deficiency as an income. you will have to pay taxes on this deficient amount.
as the second lender has charged off your account to a collection agency, you will now have pay the second mortgage debts to the collection agency. as you haven't got the 1099 form, you can contact the lender once and check it out.