Legal Question in Real Estate Law in California

Have you had an attorney look at your case to see if you could recover part or all of your investment? I focus on this area of law.

See:

http://www.danielbakondi.com/Tenancy-in-common-tic-fraud.htm

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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Perhaps, but there is one important fact omitted here. The tax that sometimes becomes due following a foreclosure and the lender's issuance of a Form 1099 to you is based on "income" resulting from forgiveness of a debt. The forgiven debt is the deficiency that becomes uncollectible when the lender elects foreclosure under a power of sale in a deed of trust rather than foreclosing judicially.

Whether getting a 1099 will actually result in a tax liability depends, of course, on whether the taxpayer has other income and/or losses and write-offs that will offset the income shown on the 1099. Only your tax accountant can tell you that.

Also, whether a 1099 is appropriate or not depends upon whether the lender has given up a right to a deficiency. In some circumstances where the lender either suffered no loss or never gave up the right to sue for the deficiency, there is no theoretical "income" to the defaulting borrower and issuing a 1099 is improper.