Foreclosure Worksheet
1099-a received for property in CA.?
Receive 1099-a for property in CA due to foreclosure (was unavoidable). Also recd a worksheet from lender (weird looking) where it indicates that property was sold for < FMV. I checked MLS and saw that property got sold for less than FMV noted in that 1099a and 70% lower than loan. Questions: a) do I have to use that 1099-a to file taxes this year ? b) there was a 2nd mortgage on this property and so what do I do re that ? c) if when I get 1099-c or lender tries to pursue me for payment of difference, what's easiest way to engage a tax attorney (listing via location)? thank you.
In California, generally there is no deficiency judgments on foreclosures. If the bank did a non-judicial foreclosure (Trustee Sale) you are home free.
You will not have any negative tax consequences because of the 1099 due to The Mortgage Forgiveness Debt Relief Act of 2007.
Below is the IRS link telling you how to deal with it on your tax return.
How to Avoid Foreclosure
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Goldmining in Foreclosure Properties. Financial Techniques, Sample Forms, Worksheets, and Checklists. Real-Life Examples … |
