Foreclosure in Wisconsin>Question Details

TANK1982, Home Seller in West Bend, WI

The bank bought our condo back at auction for what was owed. What would the deficiency be that we will have to claim on our taxes next year?

Asked by TANK1982, West Bend, WI Wed Dec 26, 2012

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They will send it to you when the property is finally sold. it will be the amount you woed, plus the cost of foreclosure minus what they sell it for. Depending on tax laws, what type of mortgage you used etc... and when it sells, will change what you may owe. Check wit your cpa or attorney once you get the deficiency letter.
0 votes Thank Flag Link Wed Dec 26, 2012
It would be best for you to speak to a tax attorney or CPA. We are not tax experts, nor attorneys.
0 votes Thank Flag Link Wed Dec 26, 2012
This answer depends on if you had refinanced the property? taken cash out? or if the loan was a purchase money only?
0 votes Thank Flag Link Wed Dec 26, 2012
We only took out the initial mortgage. We never refinanced or took out a 2nd mortgage. It went to auction last week. We owed $87,000 including court costs, fees, etc. The bank was the only bidder and bid what was owed. From my understanding we would have to claim the deficiency on our taxes since they are not suing us for it. But is this all over now at the confirmation hearing where the bank retains the property, or do we have to wait until they sell to a 3rd party to know the deficiency amount that will be reported on a 1099-C?
Flag Wed Dec 26, 2012
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