Legal Question in Credit and Debt Law in Georgia

Not sure why this question is posted twice. Here is my answer.

You do not indicate whether the land that was foreclosed is in GA. The creditor is not going to pursue a deficiency judgment action against you. Assuming the land is in Georgia, a creditor has to give notice of its intent to pursue a deficiency judgment and follow up on the foreclosure by bringing suit. If this was not done, then the time for doing it is long past. A 1099c is a cancellation of debt - it means that the creditor has given up trying to collect. You cannot make a creditor issue a 1099c. If one has not been issued, then the creditor in theory could still collect but probably will not since no action to do so was taken.

A 1099a is different - it relates to whether you sustained a gain or loss (since the property was foreclosed upon, I am assuming there was a loss). The tax consequences would depend on if there was a gain or loss and what kind of property it was (primary residence versus investment property). In order to deduct any loss you would have to have income to deduct against, but since so much time has passed I don't know if you can even file an amended return at this point.

I am not a tax lawyer or CPA so you would have to talk to your accountant to confirm this but I would not worry about it.

Here is the Georgia statute on deficiency judgments. As per the statute, if the sale is not reported to the court and confirmed within 30 days after the sale indicating an intent to pursue deficiency then no deficiency action is allowed.

O.C.G.A. � 44-14-161. Sales made on foreclosure under power of sale -- When deficiency judgment allowed; confirmation and approval; notice and hearing; resale

(a) When any real estate is sold on foreclosure, without legal process, and under powers contained in security deeds, mortgages, or other lien contracts and at the sale the real estate does not bring the amount of the debt secured by the deed, mortgage, or contract, no action may be taken to obtain a deficiency judgment unless the person instituting the foreclosure proceedings shall, within 30 days after the sale, report the sale to the judge of the superior court of the county in which the land is located for confirmation and approval and shall obtain an order of confirmation and approval thereon.

(b) The court shall require evidence to show the true market value of the property sold under the powers and shall not confirm the sale unless it is satisfied that the property so sold brought its true market value on such foreclosure sale.

(c) The court shall direct that a notice of the hearing shall be given to the debtor at least five days prior thereto; and at the hearing the court shall also pass upon the legality of the notice, advertisement, and regularity of the sale. The court may order a resale of the property for good cause shown.