I had a foreclosure in 2007. The bank sold the house and I know about the debt forgiveness on the 1st. I had a second. We moved from the house the day we could no longer make the payment - the house is in Michigan, we now live in Tennessee. The second has been charged off -- I know the lender can still (and does) require the payoff of that debt. The debt was not a cash out, but just a refinance of the previous loan. Should I expect to be 1099'd -- the charge-off was in 2007. I wonder if it would be cheaper to try and negotiate a payoff or wait to see if I receive a 1099. If I had the money to pay the debt I would.

Hello c:

All receiving a 1099 means is that you have to pay taxes on amount of forgiven loan.

I think it's a little late to negotiate anything.

excon

A charge off doesn't result in a 1099 only a forgiveness.