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  • Kevin - Greenville, SC September 24, 2013 at 10:32am
    The Internal Revenue Service does not view a Form 1099-C as an admission by the creditor that it has discharged the debt and can no longer pursue collection. Section 1.6050P-1(a) of the regulations provides that, solely for purposes of reporting cancellation of indebtedness, a discharge of indebtedness is deemed to occur when an identifiable event occurs whether or not an actual discharge of indebtedness has occurred on or before the date of the identifiable event.

     

    http://www.parkertaxpublishing.com/public/Form_1099C_Dissolve_Debt_...

  • bal singh April 18, 2011 at 5:09pm
    thanks a lot Laura for the info, much appreciated.
  • Laura A. VanHise April 15, 2011 at 8:07am

    Here is the executive office number for Bank of America.  Also try calling the Customer Service Department and tell them you need to talk to who prepares 1099C.  Please remember the short sale department has nothing to do with this.  They tried referring my seller there also but ended up with the department that prepares the interest statements and 1099C. 

     

    Bank Of America Executive Customer Relations General 704-386-5687.

    bal singh said:

    Hi Laura,


    Thanks a lot for reply my post, Can you please kindly send me the phone number if you have one,  I need to call for executive office, I don't where to start, thanks again ,

     

    Bal
    Laura A. VanHise said:

    Good morning,

    I had a customer with the exact same time frame and situation.  After going farther up the chain at BOA a 1099C was issued.  You need to get out of the short sale department and talk to the department that issues the 1099C.  The short sale department isn't going to help you.  We had a client who closed on December 30, 2010.  The 1099C never came.  She ended up tallking to the department that issues the 1099C and they said they were getting ready to issue, she received her 1099C within a week.  They should be issuing a 1099C for the amount of the principal balance at the time of closing minus any promissory note you signed.  Call customer service and tell them you want to speak to the department that issues the 1099C.  They will tell you the short sale department since you had a short sale, but this is not correct.  If you can't get any resolve call the Executive Offices at BOA and your problem will be solved by the end of the day I'm sure of it.  If I can help you anymore just write me back.  Thanks,

  • bal singh April 15, 2011 at 5:14am

    Hi Laura,


    Thanks a lot for reply my post, Can you please kindly send me the phone number if you have one,  I need to call for executive office, I don't where to start, thanks again ,

     

    Bal
    Laura A. VanHise said:

    Good morning,

    I had a customer with the exact same time frame and situation.  After going farther up the chain at BOA a 1099C was issued.  You need to get out of the short sale department and talk to the department that issues the 1099C.  The short sale department isn't going to help you.  We had a client who closed on December 30, 2010.  The 1099C never came.  She ended up tallking to the department that issues the 1099C and they said they were getting ready to issue, she received her 1099C within a week.  They should be issuing a 1099C for the amount of the principal balance at the time of closing minus any promissory note you signed.  Call customer service and tell them you want to speak to the department that issues the 1099C.  They will tell you the short sale department since you had a short sale, but this is not correct.  If you can't get any resolve call the Executive Offices at BOA and your problem will be solved by the end of the day I'm sure of it.  If I can help you anymore just write me back.  Thanks,

  • Laura A. VanHise April 15, 2011 at 3:07am

    Good morning,

    I had a customer with the exact same time frame and situation.  After going farther up the chain at BOA a 1099C was issued.  You need to get out of the short sale department and talk to the department that issues the 1099C.  The short sale department isn't going to help you.  We had a client who closed on December 30, 2010.  The 1099C never came.  She ended up tallking to the department that issues the 1099C and they said they were getting ready to issue, she received her 1099C within a week.  They should be issuing a 1099C for the amount of the principal balance at the time of closing minus any promissory note you signed.  Call customer service and tell them you want to speak to the department that issues the 1099C.  They will tell you the short sale department since you had a short sale, but this is not correct.  If you can't get any resolve call the Executive Offices at BOA and your problem will be solved by the end of the day I'm sure of it.  If I can help you anymore just write me back.  Thanks,

  • bal singh April 14, 2011 at 6:02pm

    Can someone please help me on my question please,

    I have completed short sale in Nov 2010, I had first (never refinance) and HELOC with BOA. During short sale closing I agree to Promissory note of 14K for 6 years. On short sale apporval letter BOA stated they are waiving right of Deficiency adn will issue 1099 C.

    Until now I havn't receive 1099 C, then called BOA few weeks back, One of the senior representative in short sale department told me that they are not issuing me 1099 C because i have signed promissory note and also my Short sale won't be reported to IRS.  Can anyone help me here to undertand,  is it ture ?

    I am in CA

    thanks

     

  • Bob Vaskas March 30, 2011 at 5:34pm

    Something to watch out for:  1099A and 1099C are not the same

    1099C is the good one

    1099A is the bad one

    My friend has received a 1099A and is now being sued for deficiency by the lender.  This is 2 years after foreclosure, this is in Lee country, Florida.

    Docket Lines
    Docket Date Docket Text








    10/6/2008 Motion for Default and Default (Issued)
    10/6/2008 Motion for Default and Default (Issued)
    10/17/2008 Final Disposition Form
    10/17/2008 Final Judgment
    10/17/2008 Notice of Sale Issued, Copy to News-Press
    11/6/2008 Affidavit of Publication of Notice of Sale
    11/19/2008 Foreclosure Sale Time - 11:00
    11/19/2008 Bid Sheet
    11/19/2008 Certificate of Sale Issued
    12/2/2008 Certificate of Title Time - 14:00
    12/2/2008 Certificate of Disbursements Issued
    12/2/2008 Certificate of Title Issued
    7/16/2010 Motion for Deficiency Judgment
    8/9/2010 Response to Motion
    8/9/2010 Notice of Limited Appearance
    8/11/2010 Response to Motion
    3/7/2011 Notice of Hearing 4-1-11 at 8:30am
  • Tni LeBlanc (805) 878-9879 March 30, 2011 at 11:26am

    Laura,

     

    I completely agree.  The outcry would be insane.

     

    Tni

  • Laura A. VanHise March 30, 2011 at 11:11am

    TNI,

    I think that if any bank ever came back after a borrower received a 1099C and filed taxes claiming insolvency or if this was their primary resident using the tax code that was offered up when this mess started, there would be an outcry in this country.  I for one would be on every soap box I could find.  I think common sense dictates that these banks just want this mess to go away as fast as they can. 

    I believe that they have given most seller's a window of opportunity to do a short sale and that within a couple of years this will be over.  I'm telling you my age by talking about this, but we did short sales back in the early 80's when the savings and loans went down.  We dealt with the Resolution Trust Company.  Much was written and talked about the repercussions sellers would be in.  As history has shown they just wanted to get the mess cleaned up from the negative amortizations they did back then.  I've been in this business 37 years. I have never heard of or saw a lawsuit from a residential first mortgage lender after a foreclosure or (short sale in the 80's) go after a deficiency here in Florida.  It is costly to file another suit on a borrower already in financial stress and not good on there image.  We didn't have credit lines back then, but history has a way of repeating itself. 

    Tni LeBlanc said:

    I think you're right Wendy.  Theoretically possible I suppose because anything that was done can probably be undone. 

    But oh so messy in its implications because the homeowner relied on that document. 

     

    Besides if a mistake was made that seems to me to be a servicer issue.  If the servicer had authority to issue that document and made a mistake -- they made a mistake and I would think they would be liable to the investor/guarantor as the debt was "mistakenly" rendered uncollectable.  Seems like some bad loan servicing to me and what does that have to do with the person who relied on the document?  I suppose if you didn't want the 1099 rescinding could be an easy process  if the bank also wanted to do that, but since many people are relying on it to deal with their deficiency and getting tax forgiveness anyway -- I think you'd have to tear it out of their cold hands.

     

    1099's are an interesting topic also because they have a potential penalty for not issuing a 1099 in a timely fashion as well.  This discussion never gets old to me.  I loved reading that BofA letter.  Looks like the banks are getting more of a handle on what they want to do and what it means.  I've had plenty of bank reps tell me the same thing that their opinion is that they can not do both:  continue to try to collect and issue a 1099c.

     

    *By the way this is not legal advice and should not be relied on as legal advice.  Legal advice is expensive and this was totally free.

  • Tni LeBlanc (805) 878-9879 March 30, 2011 at 10:42am

    I think you're right Wendy.  Theoretically possible I suppose because anything that was done can probably be undone. 

    But oh so messy in its implications because the homeowner relied on that document. 

     

    Besides if a mistake was made that seems to me to be a servicer issue.  If the servicer had authority to issue that document and made a mistake -- they made a mistake and I would think they would be liable to the investor/guarantor as the debt was "mistakenly" rendered uncollectable.  Seems like some bad loan servicing to me and what does that have to do with the person who relied on the document?  I suppose if you didn't want the 1099 rescinding could be an easy process  if the bank also wanted to do that, but since many people are relying on it to deal with their deficiency and getting tax forgiveness anyway -- I think you'd have to tear it out of their cold hands.

     

    1099's are an interesting topic also because they have a potential penalty for not issuing a 1099 in a timely fashion as well.  This discussion never gets old to me.  I loved reading that BofA letter.  Looks like the banks are getting more of a handle on what they want to do and what it means.  I've had plenty of bank reps tell me the same thing that their opinion is that they can not do both:  continue to try to collect and issue a 1099c.

     

    *By the way this is not legal advice and should not be relied on as legal advice.  Legal advice is expensive and this was totally free.

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