i am trying to shortsell my house right now but im afraid it will foreclose before i can sell it , need to know about the 1099
2007-08-22 11:34:26 · 2 answers · asked by michelle p 1 in Business & Finance ➔ Personal Finance
You receive a 1099 for the amount of debt forgiven. If the bank forecloses, and sues you for the deficiency, no debt was forgiven. In a short sale, the difference between the sale proceeds and the mortgage balance should be reported on a 1099. If you are insolvent at the time of the short sale, the forgiven debt is not taxable.
2007-08-22 12:14:47 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you short sell and the bank accepts that price then you will not receive a 1099. If foreclosed and the amount of sell is short the loan amount you will have to pay the difference or negotiate it away.
2007-08-22 18:39:20 · answer #2 · answered by Anonymous · 0⤊ 1⤋