Foreclosure 1099-C or 1099-A???
Date: Sat, 03/13/2010 - 20:41
I’m not sure how to start this, so just going to let it rip and hopefully it’s coherent.
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[SIZE=3]I owned a home that was foreclosed upon in 2009. I originally bought it in 2003. The original note holder was Capital Commerce, who went belly-up shortly after my loan closed (maybe 30 days later). I didn’t know who they sold/assigned the note to, but shortly after close I got a notice that I should make my monthly payments to Wells Fargo, so I did. And I paid them until November 2008, at which time for reasons I won’t get in to, I stopped paying them. [/SIZE]
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The crazy foreclosure process started. I got my notice of default. The phone rang off the hook. I sent hardship after hardship letter asking for breathing room or some type of assistance. Yada, yada, yada. They weren’t terribly interested.
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I was told during the process that Freddie Mac actually owned the note; Wells Fargo was just the servicing agent. I sent them a request asking them to produce the note, along with other information, no response... I also sent the same request to the lawyers who were processing the foreclosure, with no response.
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For many reasons, I succumbed to the idea that the house would foreclose no matter what I did, and so it did on 8/20/09.
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Fast forward to today. I was working on preparing my tax return and I notice that I got two tax documents related to my foreclosed home. One is a 1099-A (Abandonment of Secured Property), which was issued by Freddie Mac. The other is a 1099-C (Cancellation of Debt), which was issued by FHLMC. Two 1099’s, two Creditors, one mortgage on the property (which was never refinanced), and one foreclosed property. The amounts on the 1099’s are identical, $191k outstanding debt, FMV of property of $105k (which isn’t correct).
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[SIZE=3]So I’m trying to figure this out, why did I get both a 1099-A and a 1099-C on the same property from different creditors? Is this common? Who owned the note? Do they even know? I have long hypothesized that no one could produce this note. I suspect it never made it out of Capital Commerce since they went under so quickly after close. [/SIZE]
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Any thoughts on what action I should take, if any?
[SIZE=3] [/SIZE]
[SIZE=3]I owned a home that was foreclosed upon in 2009. I originally bought it in 2003. The original note holder was Capital Commerce, who went belly-up shortly after my loan closed (maybe 30 days later). I didn’t know who they sold/assigned the note to, but shortly after close I got a notice that I should make my monthly payments to Wells Fargo, so I did. And I paid them until November 2008, at which time for reasons I won’t get in to, I stopped paying them. [/SIZE]
[SIZE=3] [/SIZE]
The crazy foreclosure process started. I got my notice of default. The phone rang off the hook. I sent hardship after hardship letter asking for breathing room or some type of assistance. Yada, yada, yada. They weren’t terribly interested.
[SIZE=3] [/SIZE]
I was told during the process that Freddie Mac actually owned the note; Wells Fargo was just the servicing agent. I sent them a request asking them to produce the note, along with other information, no response... I also sent the same request to the lawyers who were processing the foreclosure, with no response.
[SIZE=3] [/SIZE]
For many reasons, I succumbed to the idea that the house would foreclose no matter what I did, and so it did on 8/20/09.
[SIZE=3] [/SIZE]
Fast forward to today. I was working on preparing my tax return and I notice that I got two tax documents related to my foreclosed home. One is a 1099-A (Abandonment of Secured Property), which was issued by Freddie Mac. The other is a 1099-C (Cancellation of Debt), which was issued by FHLMC. Two 1099’s, two Creditors, one mortgage on the property (which was never refinanced), and one foreclosed property. The amounts on the 1099’s are identical, $191k outstanding debt, FMV of property of $105k (which isn’t correct).
[SIZE=3] [/SIZE]
[SIZE=3]So I’m trying to figure this out, why did I get both a 1099-A and a 1099-C on the same property from different creditors? Is this common? Who owned the note? Do they even know? I have long hypothesized that no one could produce this note. I suspect it never made it out of Capital Commerce since they went under so quickly after close. [/SIZE]
[SIZE=3] [/SIZE]
Any thoughts on what action I should take, if any?
1099-A is the form that you should be receiving when the propert
1099-A is the form that you should be receiving when the property was foreclosed. But you are likely to receive 1099-c form as well if the lender has forgiven the remaining amount on the mortgage after the property was foreclosed.
My loan was non-recourse. So I'm not sure there was any debt to
My loan was non-recourse. So I'm not sure there was any debt to foregive... they took the collateral that secured the loan (house) and that's all they're entitled to. I guess I don't understand what I got both.