Help with Chase 2nd that is a HELOC

Has anyone had a situation where Chase is the 2nd and it's a HELOC? Helping a freind of mine that is an agent who's 2nd is with Chase. Just got a copy of the approval letter that states

We are writing to confirm our agreement to release our security interest in the above-referenced Property upon receipt of interest only, and you are still responsible for the deficiency balance remaining on the Loan, per the terms of the original loan documents.

This might be a silly question but any idea if there is a tax liability here? This loan was charge off last year.

HELP!!!

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Permalink Reply by Donny Piwowarski on April 5, 2011 at 11:46am

Patsy,
Sounds like they might pursue your client for the balance on the loan. If thEy cancel the debt, then there will be a 1099 issued and that will trigger the tax consequence

Permalink Reply by Patsy Clevenger on April 5, 2011 at 1:36pm

Thanks Donny that makes sense.

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