California
Taxpayer purchased the Personal Residence in 2006 and two loans were funded at closing, one primary and one HELOC for almost 100% financing. Both with Citi Mortgage
Taxpayer in 2009 short saled the home, the primary 1st deed of trust accepted the short sale so there shoudl be no 1099C (accoridng to the documents ), however, same lender issued a 1099C for the HELOC loan (which was part of the original purchase) They had to sign off for the short sale to close. No refinances, no new loans, these both were original loans, and the paperwork indicates that.
Box 4 - shows Home Equity
Box 5 - Personally liable for repayment of the debt is checked YES
Is the only recourse to use the form 982 for insolvency to offset this 1099C
Gotta Luv the Loan Brokers, Banks and Finance People.
Thoughts or suggestions would be really welcomed
Sandy
Taxpayer purchased the Personal Residence in 2006 and two loans were funded at closing, one primary and one HELOC for almost 100% financing. Both with Citi Mortgage
Taxpayer in 2009 short saled the home, the primary 1st deed of trust accepted the short sale so there shoudl be no 1099C (accoridng to the documents ), however, same lender issued a 1099C for the HELOC loan (which was part of the original purchase) They had to sign off for the short sale to close. No refinances, no new loans, these both were original loans, and the paperwork indicates that.
Box 4 - shows Home Equity
Box 5 - Personally liable for repayment of the debt is checked YES
Is the only recourse to use the form 982 for insolvency to offset this 1099C
Gotta Luv the Loan Brokers, Banks and Finance People.
Thoughts or suggestions would be really welcomed
Sandy
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