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    capitalmute's Avatar
    capitalmute Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 26, 2008, 10:29 AM
    Second Mortgage
    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.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Dec 26, 2008, 11:16 AM
    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
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Dec 26, 2008, 12:46 PM

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