I had house I had to walk away from in September 2008. This house was extremely upside down. I had first mortgage at 308,000 and a second at 50,000. In December 2008, I did receive a form that said the house was worth only 192,000. It was not a 1099C. I never received anymore coorespondence. I did not include this on any tax return. I am concerned that at some point the IRS may audit me. What should I do? Just this year I received a letter from a company saying i owed taxes to the mortgage company for back taxes. The house has been purchased by someone else. Wouldn't they have to cover back taxes before purchasing?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.