Mortgage Foreclosure

Can A Mortgage Lender Seek Deficiency Judgment After Issuing A Form 1099?

  Many people do not understand the significance of tax form 1099 in the foreclosure context. A 1099 is an IRS reporting form indicating that the lender has written off a mortgage and is declaring a tax loss. The borrower may have to declare the bank’s loss as imputed income.


Forclosure Tax Effect: Imputed Income From Debt Forgiveness May Be Offset By Investment Losses

Many people facing foreclosure are concerned about income tax liability from the lender’s forgiveness of mortgage debt. If the mortgage lender does not pursue a deficiency judgment and writes-off the loan after foreclosure the lender could send the owner a IRS Form 1099 for imputed income for the amount of…

Mortgage Foreclosure: Second Mortgage Lender Sues Directly On Promissory Note Instead Of Deficiency Action

I have reported recently that some second mortgage lenders have become more aggressive by suing defaulting homeowners personally for a deficiency judgment. I recently received an email from a litigation attorney representing New York residents who purchased an investment home in Florida subject to a first and second mortgage. I…

Liability For HOA Or Condo Association Dues After Foreclosure

Several people who are contemplating voluntary foreclosure have asked me whether they should continue paying their homeowner or condominium dues during the foreclosure process. I have recommended that homeowners stop paying homeowner dues if they are voluntarily surrendering their homes to their mortgage lender.