Posted on: 04th Feb, 2011 07:37 pm
We sold our home to our son on Jan.26, 2011, closing date. We had a charge-off on the 2nd loan back in 10/06. We have not heard a word or received anything from the charge-off company since 2006, it seems as though they didn't sell it to a collection agency as no one has contacted us in any way to collect payment for the loan. We thought anything having to do with that co. was over.
The lawyer for the sale of our house called the "charge-off" company and the lawyer was told that they had to re-open the loan to access the information needed by the lawyer. Yes, we closed without all paperwork being verified. I don't know why the lawyer still closed, clearly the closing should have been postponed.
The "charge-off" company says I owe them over $27,000.00 in order to get this settled, original loan at time of charge-off was 16,600+. I rec'd a 1098 for tax purposes in 2006 showing "ending principal balance" as $.00. My credit report also shows a balance of $.00 for the loan.
We sold our home to our son due to our financial situation, we would have gone to foreclosure very soon.
I went to the county bldg. in my county and got a North Carolina General Warranty Deed, it already shows my son as the Grantee.
1) What is a 1098? What's the difference between a 1098 and a 1099?
2) What are our options regarding the charge-off? The lawyer wants me to barter my money from the closing with the charge-off co. The lawyer is still holding our money from the closing, a little over $10,000.00. I really don't want to do that, as we have other debts we were planning on paying off with that money. If I didn't need the money we wouldn't have sold the house for as much as we did. My son understands that and is okay with it.
3)And if I did decide to barter what happens if the charge-off co. doesn't accept my $10,000.00?
4) What happens to the house that's already in my son's name? The lawyer says she doesn't know. She has never run into this before.
HELP, PLEASE!!
The lawyer for the sale of our house called the "charge-off" company and the lawyer was told that they had to re-open the loan to access the information needed by the lawyer. Yes, we closed without all paperwork being verified. I don't know why the lawyer still closed, clearly the closing should have been postponed.
The "charge-off" company says I owe them over $27,000.00 in order to get this settled, original loan at time of charge-off was 16,600+. I rec'd a 1098 for tax purposes in 2006 showing "ending principal balance" as $.00. My credit report also shows a balance of $.00 for the loan.
We sold our home to our son due to our financial situation, we would have gone to foreclosure very soon.
I went to the county bldg. in my county and got a North Carolina General Warranty Deed, it already shows my son as the Grantee.
1) What is a 1098? What's the difference between a 1098 and a 1099?
2) What are our options regarding the charge-off? The lawyer wants me to barter my money from the closing with the charge-off co. The lawyer is still holding our money from the closing, a little over $10,000.00. I really don't want to do that, as we have other debts we were planning on paying off with that money. If I didn't need the money we wouldn't have sold the house for as much as we did. My son understands that and is okay with it.
3)And if I did decide to barter what happens if the charge-off co. doesn't accept my $10,000.00?
4) What happens to the house that's already in my son's name? The lawyer says she doesn't know. She has never run into this before.
HELP, PLEASE!!
Welcome terryk,
The Form 1098 also known as Mortgage Interest Statement, is used to report interest which a taxpayer has paid on his or her mortgage. This interest is tax-deductible at the federal level. Form 1099 is a form which is used in the income tax system to prepare and file an information return to report types of income other than wages, salaries, and tips.
If the debt has been charged off by the creditor, then you're liable to pay it off to the collection agency. Charge off does not mean that the debt has been forgiven. You will have to negotiate with the collection agency in order to convince them for accepting a lower amount. Your son may become liable for paying off the lien if you don't pay it off.
The Form 1098 also known as Mortgage Interest Statement, is used to report interest which a taxpayer has paid on his or her mortgage. This interest is tax-deductible at the federal level. Form 1099 is a form which is used in the income tax system to prepare and file an information return to report types of income other than wages, salaries, and tips.
If the debt has been charged off by the creditor, then you're liable to pay it off to the collection agency. Charge off does not mean that the debt has been forgiven. You will have to negotiate with the collection agency in order to convince them for accepting a lower amount. Your son may become liable for paying off the lien if you don't pay it off.