Financing in Leelanau County>Question Details

Springlake,  in Leelanau County, MI

I am holding a purchase money mortgage on invesment land in Mi and the Buyers want to give me the property back because the market value has dropped.

Asked by Springlake, Leelanau County, MI Thu Jan 12, 2012

If I accept the deed, can I send them a 1099c for the difference between the amount they owe me $189,000 and the current market value of $150,000.

Help the community by answering this question:


You can give them a 1099C but it doesn't impact your cost basis or taxes. All you are really doing is making them pay tax on the 49K.
0 votes Thank Flag Link Wed Aug 15, 2012
If you are not already in contact with your attorney, you should do so soon. This is not a decision you should make without advice from your counsel, accountant and you need to get an updated title insurance policy. Accepting a deed in lieu of foreclosure does not nullify secondary liens. Any claims against the property will be your responsibility.
0 votes Thank Flag Link Wed Jan 25, 2012
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