what kind of lawyer do I need for this problem?

Question

a lender forgot to file a 1099 form, it was for a cancellation of debt... and we are not able to get equality out of our house until this is cleaned up, so....what kind of laywer will I need to present this problem to the proper court. Also what kind of court/hearing would best describe this kind of situation?

okay, maybe this will help, our current mortage company put together a deal and it was all ready but this thing came up and it says we owe $38,000 and well we aint got that...but there is the problem the origanal loan was from Conseco and they sold out to this company called Green Tree and they say we owe, but Conseco sent us a letter of cancellation and then we received a second letter from Green Tree saying the same thing, yet when our current mortage company check the title company Green Tree listed that we owe them the loan...wtf right?, so ....our current mortage company says that that is all they can do and that we need to get a lawyer who will force the Lender to file the right paperwork so we can get our loan......so what do I do????

it was a secondary loan, yes and it was never paid, (by the way this was my boyfriends' problem with his ex-wife, so...) anyways....I'm looking right the letter and it says The Companys' name and it says, Cancellation of debt Owe $0.00... why cant it just be forgiven ( yeah I grew up apartments my whole life, lol, so its all foreign to me, lol)....yes he file bankrupty and the first mortage company let him keep the house, I mean I'm living in it right now so...lol.....what should we do next, who do we need to contact with this proof that we don't owe anyone anything, or is this letter useless as proof of that....he is alwasy busy with work so I have to do the digging and well here I am, lol....all your advice is helpful and appreciated:-)

Answer 1

I suspect what is happening to you is that, when your husband didn't pay his debt and the lender agreed to cancel whatever you owed (probably due to the bankruptcy) your husband was supposed to be issued a Federal Form 1099 for the amount of the cancelled debt, making him liable to pay income tax on that amount. I'd guess that this appeared in the paperwork somewhere and your new lender is concerned that the former lender may discover that it was not sent and filed, and correct their error in the future.

If the error is corrected, you will be liable for a substantial amount of income tax and the new lender is concerned about that.

This isn't a matter for a court of any sort. This will need to be handled by the lender who forgot to issue the Form 1099. If you contact them about it, they WILL issue the Form 1099 and you will owe income tax. If you do NOT contact them, the problem simply won't go away.

Answer 2

There isn't anything you can legally do that will make the process go any faster.

A 1099 form DOES NOT have anything to do with a cancellation of debt....a 1099 form is a Tax form for self-employed borrowers...that doesn't have anything to do with the equity in your home.

If you are talking about refinancing your home and the satisfaction of mortgage not being filed on a previous debt, that is a common problem and is easily fixed. Just get the new attorney that is conducting the closing to contact the old lender and they will actually get the proper paperwork and file it in order to make sure the new lien positions are correct when the new loan is closed.

It's done all day, every day. Not a big deal.

Answer 3

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RE What kind of lawyer do I need for this problem?

a lender forgot to file a 1099 form, it was for a cancellation of debt... and we are not able to get equality out of our house until this is cleaned up, so....what kind of laywer will I need to present this problem to the proper court. Also what kind of court/hearing would best describe this kind of situation?

Answer 4

It sounds like you had a loan through a bank, who sold it to another bank. Who then sold it to another bank. You didn't pay off this loan correct? I think the letter was probably just your notification that the debt had been sold. If you have a copy you should be able to give that to your lender who will have their title company investigate. No bank just cancels a debt for no reason.

If you no longer have the letter then you need to contact the bank directly.

Answer 5

A 1099 is a statement of income of some sort not any type of lien document tht would prohibit you from accessing your equity. I think you may have the wrong form number.

Answer 6

Have you contacted the title company that closed the previous loan...if indeed a title company closed it. If so, they may be able to fix your problem.