I had a foreclosure,can mortgage company collect on judgement and still send a 1099?

Question

i received 1099,had to claim 30,000 as profit, which was amount of judgement , can they do both?

I appreciate your previous answers,I would like to give a little more info. This was not a short sale ,this went on forever with Ocwen mortgage after 2 years they did foreclose a judgement was issued for around $30,000. At the end of the year they sent me a 1099 in which I had to claim the 30,000 as income. My question is , they cant have a judgement against me if they wrote it off can they?

Answer 1

If you received a 1099 then you probably did what is called a short sale. This is when you (the borrower) and the bank agree to sell the home for LESS than what you (the borrower) owed to the lender.

Whatever the shortfall was (difference in sales price and amount YOU owed) you should have a 1099 for. If your 1099 was for LESS than that, then YES the lender has the right to collect the remaining balance that was not FORGIVEN (hence the 1099 for GAINS)

read over the sale agreement where the lender agreed to sell the property for less than you owed, it should spell out what amount of the debt will be forgiven and what you agreed to PAY the bank back.

Hope this helps

Answer 2

If they wrote off some money you owed they should send a 1099.

Answer 3

read the sale aggrement where the lender sale is less what you have owed. for more details contact http://realestatepropertynews.com/claim-for-foreclosed-house.html