Is anyone here has experienced Property Foreclosure?
Question:
Do you automatically need to do 1099-C even if you don't know if the lender submitted 1099-A to the IRS?
It depends.
What state was the foreclosure in? Some States have regulations called "non recourse". A mortgage in which the lender will not pursue personal liability against the borrower.
You can contact your lenders loss mitigation division to find out. You can contact me if you like. You can go to the library and check for Nolo Press's book on foreclosure.
The 1099-A is submitted to the IRS at the end of the year.
If you have lived in the property for 24 months or more before the forgiveness you may not have a 1099-A. 1099-A is for the loss as a profit. You are allowed a profit of $250,000 (single person) $500,000 (couple) if you meet the residency requirement.
Review this information, check with the lender, a tax preparer or the library.
Good Luck
Chris C
Real Estate Financial Advisor
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