Foreclosure in Sacramento>Question Details

Taxed, Home Owner in Sacramento, CA

Can the bank still try to collect on a mortgage loan after they have issued the Abandonement Statement, 1099-A?

Asked by Taxed, Sacramento, CA Sun Jul 31, 2011

If the house has been abandoned by default of the nonpayment of mortgage, how long does it normally take before the bank writes off the balance not received after the sale? Being the debt forgiveness laws are only good thru the end of 2012, can the bank postpone issuing the Cancellation of Debt until after that time so that you would still have to claim that amount as taxable income?

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3
Kind of a "Who Knows" question? Banks and attorneys seem to have differing opinions, right, wrong or ??
0 votes Thank Flag Link Tue Aug 9, 2011
Your going to need a lawyer! depending what was placed on the contract they will have to read through it. Some states do allow the bank to go after the home owner for any dues.
0 votes Thank Flag Link Mon Aug 8, 2011
You should consult a CPA or attorney. Any Realtor who gives you legal or tax advice may not be a Realtor for long. Banks are in the business of collecting money. If there's a way, they have the will.
Web Reference: http://www.JayEmerson.com
0 votes Thank Flag Link Wed Aug 3, 2011
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