Legal Question in Real Estate Law in California

Do all lenders that foreclose on you send you a 1099?

Is it possible for a lender that foreclosed on you that is a non recouse loan to never send you a 1099 if the loan is a non recouse loan and they did recieve any money ??


Asked on 5/08/09, 1:13 am

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Do all lenders that foreclose on you send you a 1099?

You'll receive a 1099 and you'll owe taxes on the 'forgiveness'.

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Answered on 5/08/09, 8:25 pm
George Shers Law Offices of Georges H. Shers

Re: Do all lenders that foreclose on you send you a 1099?

Not all lenders act the same way. I doubt that you can influence whether they will send a 1099 or not so try to force it out of your mind. For a while the IRS had the policy to ignore these types of 1099 and I am not sure if that still is the policy. Contact the IRS and ask them.

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Answered on 5/08/09, 1:47 am


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