Posted on: 03rd Sep, 2007 05:24 pm
Do I have to keep paying on judgement? I have heard they can only collect on one or the other. Someone else told me they can keep collecting
Richard,
If the mortgage company goes for recovery of balance through a judgment then they cannot send you a 1099 form. They can do one of the two; write off the debt and send a 1099 or sue for getting a deficiency judgment. How can they write off the debt and send you a 1099 if they have claimed a judgment and collecting on it?
If the mortgage company goes for recovery of balance through a judgment then they cannot send you a 1099 form. They can do one of the two; write off the debt and send a 1099 or sue for getting a deficiency judgment. How can they write off the debt and send you a 1099 if they have claimed a judgment and collecting on it?
You should contact them and inquire what they are trying to do as they are already collecting on the judgment, how could they issue you a 1099. They cannot do both at the same time.
On this page also you will find similar views expressed about judgment & 1099 forms: http://www.gareia.org/web/L2.asp?SID=17&CID=128 . Please have a look.
On this page also you will find similar views expressed about judgment & 1099 forms: http://www.gareia.org/web/L2.asp?SID=17&CID=128 . Please have a look.
Thankyou for your answer, this whole thing has been going on for over three years with Ocwen Mortgage, it is hard to get them to respond to anything I even had a laywer at one time. I will send them a letter and ask them why they are trying to both, if I hear nothing back do I have any other recoarse. Does the judgment just set there?
Hi Richard,
When the mortgage company has sued you for a deficiency judgment, they cannot issue the 1099 Form. They have no right to do both the things at the same time. Either they will write off your debt with the 1099 Form or will seek the difference between sale amount and the debt amount through the deficiency judgment.
Now as you are not getting any response from them, you can do two things. Either you send a certified mail to the IRS and inform them of your situation or take the matter to the court. Any of these approaches will help to proceed further with this matter.
When the mortgage company has sued you for a deficiency judgment, they cannot issue the 1099 Form. They have no right to do both the things at the same time. Either they will write off your debt with the 1099 Form or will seek the difference between sale amount and the debt amount through the deficiency judgment.
Now as you are not getting any response from them, you can do two things. Either you send a certified mail to the IRS and inform them of your situation or take the matter to the court. Any of these approaches will help to proceed further with this matter.
Hi Richard,
Welcome to our forums.
You've correctly heard that the lender will either go for a judgment or else he will forgive the debt as a result of which it will be reported to the iRS as your income. This will be followed up by the IRS sending the borrower a 1099 form. But getting 1099 form and at the same time paying for judgment - doesn't it sound odd??
Good luck
Welcome to our forums.
You've correctly heard that the lender will either go for a judgment or else he will forgive the debt as a result of which it will be reported to the iRS as your income. This will be followed up by the IRS sending the borrower a 1099 form. But getting 1099 form and at the same time paying for judgment - doesn't it sound odd??
Good luck
I lost my house because the economic situation .The company sold the house to a realty.I Did my tax return and Iam worry about what they can do because the prices on the houses went down,Can I get my tax refund without any cmplications?
I don't think you would face any problem in getting a tax refund. However, consult a tax adviser and take his opinion regarding this.