I have 2 loans on my house (80/20) will i get a 1099 on both loans?

From what I have heard it depends on the state. The alternative to owing taxes on the amount of the 1099 is to have a suit filed against you by the lender, so either way you technically owe on the 'forgiven' amount in the short sale.

1 loan, 2 loans, all that matters is the amount that is considered income.

Hello d:

There was a law passed recently that said you will NOT be charged taxes on the "phantom" profit you made on your home.. You MIGHT still receive a 1099, but you can make adjustments on your tax return.

I'm going to go look for it and link you to it.

excon