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does this mean that the mortgage company will not come after me for any monies owed? bank forclosed on us last year, the house was sold with a deficiency balance of around 50k. lastly, can i send the 1099 to the cra's to bring my mortgage balance down to zero ??? or is this something the mortgage co will report ? thanks for all the help !!!! :good:

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it was a 1099c, hope that helps !!!!

That's a cancellation of debt usually a bad thing. It's generally when you do a short sale, deed-in-lieu, charge off, etc... I would constault your tax accountant because you may have to include that as income on your tax returns and you may not.

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The 1099-C means they won't be coming after you for the balance, it is cancelled.

 

Suggest that you have your taxes in the year that you rec'd the 1099-C, prepared by a professional; (not HR Puffinstuff either).

They will be filling out an IRS Form 982, and on that form they will declare your assets and liabilities, prior to the debt being forgiven. (This is a snapshot of your financial affairs at the moment before you lost the house). If your liabilities exceeded your assets at that moment, then you will not have any tax liability for the forgiven debt. OR if ths was your primary residence then the debt relief wouldn't be taxable due to The Mortgage Foregiveness Debt Relief Act of 2007

 

But either way, use a professional to do those taxes in the tax year the 1099 was issued.

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