Posted by John on January 29, 2005 at 16:30:35:
Evidently your lender is now treating the uncollected amount as settled and written off. So that is taxable income to you…
Why did I get a 1099-A after DIL? - Posted by Kevin
Posted by Kevin on January 29, 2005 at 14:40:50:
Back in 2003 I did a deed-in-lieu to Chase Manhatten on a property because I was in deep trouble financially. The lender accepted the deed and transfered it Federal Home Loan Mortgage who then transfered it to Flagstar. Flagstar now has the property listed with a realtor.
Last year my accountant treated the deed-in-lieu as a sale (sale amount=balance of loan) for tax purposes. This year I just received a 1099-A from Flagstar for an amount more than the balance of the loan. What gives ?
The only thing that I can relate is that I did have a loan with Flagstar on this property before I refinanced but I don’t know why I would have foregiveness of debtfrom them now after the DIL was already processed. Chase also has reported on my credit report “Credit grantor received deed for collateral in lieu of foreclosure on a defaulted mortgage”.
Anybody shed some light on this for me ?
Thanks
Kevin
Re: Why did I get a 1099-A after DIL? - Posted by chet
Posted by chet on January 30, 2005 at 22:50:14:
it was “debt forgivness”.
Re: Why did I get a 1099-A after DIL? - Posted by Tom-FL
Posted by Tom-FL on January 29, 2005 at 18:50:34:
So what was the agreement with the bank?
Deed for loan balance?
or
Deed for loan balance + arrearages + attorney fees + court costs + processing fees + fairy godmother fees + rainbow fees + misc. fees?
Apparently there was a deficiency there somewhere.