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Non-Bankruptcy Question
David:
A 1099c can only be issued if the debt is forgiven. Believe this is an admission the debt is forgiven and cannot be collected.
Go to irs.gov and search 1099c. I am using my iPhone and cannot directly send you there, but you will see you may NOT use a 1099c unless the debt is cancelled .
Dennis McGoldrick
350 S. Crenshaw Bl., #A207B
Torrance, CA 90503
On Jun 10, 2010, at 7:07 AM, "David A. Tilem" wrote:
Thanks Mark. If anyone else has thoughts on this issue, I would appreciate hearing from you as well. Is the Creditor prohibited from attempting collection AFTER issuing a 1099-C?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
on
ark T.Jessee
Sent: Wednesday, June 09, 2010 9:06 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Re: Non-Bankruptcy Question
David:
I researched this issue a few years back from the standpoint of when the 1099-C should be issued, but have not reviewed it since. IRS position from my interpretation was that the 1099-C should not be issued unless the creditor believed the debt was completely uncollectable and not before then. That said I am not aware of any statute holding issuance of the 1099-C acts to prohibit the creditor from seeking to collect the debt, although if debtor had to pay tax on the discharged income and the lender took the loss as a tax deduction, I would raise estoppel as a defense in any action filed. I wonder if the FDCPA addresses this issue? At the very least the creditor continuing to attempt collection is a basis to challenge the 1099-C by the debtor as the creditor clearly does not believe the debt is uncollectable. If the debt later is collected from the debtor in full or part then the 1099-C would need to be amended. The creditor should be able have
it's cake and eat it too!
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Wed 9/06/10 6:24 PM , "David A. Tilem" DavidTilem@TilemLaw.com sent:
Robert:
Thanks, but it is not exactly my question. I know that there is COD income tax liability. My question is whether, after issuing a 1099-C, the lender can still attempt to collect the debt. Is the lender somehow precluded from attempting to collect the debt after it issues a 1099-C?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
on
obert
Sent: Wednesday, June 09, 2010 5:29 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Non-Bankruptcy Question
An attempt to give back to the message board.
Borrower owes nothing, based on
The post was migrated from Yahoo.
By issuing a 1099-C the bank is saying that some event happened that
reduced the debtor's
contractual obligation, where the bank agreed to accept less. Ask the
bank Why.
Disclaimer
Although the above response is believed to be accurate, it should not be
relied upon as any type of legal advice. It is intended to educate the
reader and a definite answer should be based on a consultation with a lawyer.
No attorney client relation is formed with me without a written contract.Good Luck starts with a strategy and a plan.
Robert J. Suhajda, MS,CPA
Attorney
17721 Norwalk Blvd. #43
Artesia, CA 90701
562-924-8922
Former financial auditor and controller. Admitted to US Tax Court, IncomeTax, Bankruptcy, IRS representation, Fiduciary income tax returns, Estateand Gift tax returns
In a message dated 6/9/2010 4:19:44 P.M. Pacific Daylight Time,
DavidTilem@TilemLaw.com writes:
Bank is owed $500,000 secured by Property.
Property is worth $400,000.
Bank issues Form 1099-COD for $100,000
Question 1: How much must borrower pay to fully satisfy the obligation?
Question 2: Why?
Remember: NO BANKRUPTCY INVOLVED
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, , G, ,
The post was migrated from Yahoo.
charset="ISO-8859-1"
Let me go back in time, to when I had a desk in the Office of Chief Counsel
of the IRS . . .
I see this case coming to my desk when the IRS issues a notice of deficiency
against Joe Taxpayer for failure to report his $100,000 of COD income, which
our agent found when the computers matched up the 1099-COD and the return.
Joe sues the IRS in Tax Court, saying I didnt get this income because the
creditor is still hounding me for it. Ill call Joe up and ask him what
his evidence is that the debt isnt written off; if its good evidence, then
Im referring the creditor to audit because its issuing fraudulent 1099s.
The creditor is issuing the 1099 so that it can get a bad debt writeoff, and
thus a deduction from income tax. If its taking the deduction and still
pursuing the debt, its defrauding the government and honest taxpayers. I
think I could get a bunch of government employees excited about this one.
I also think that estoppel works well in this situation without dragging the
IRS into it. The 1099 is a document with legal effect that binds the issuer
against the government and against the issuee. You cant write off a debt,
announce it to the government and the borrower, and then seek to collect it.
- John D. Faucher
On 6/10/10 8:47 AM, "jonhayes6666" wrote:
>
>
>
>
>
> This has got great article written all over it - 800 words. I had a client
> recently who got a 1099-C and believed that he no longer had to pay the debt.
> Luckily the bank saw its mistake and rescinded the 1099-C but I wondered about
> the efect myself. Does announcing you have written off the debt somehow
> prevent the collection?
>
> --- In cdcbaa@yahoogroups.com , Mark
> T.Jessee wrote:
>> >
>> >
>> >
>> > David:
>> >
>> > I researched this issue a few years back from the standpoint of when
>> > the 1099-C should be issued, but have not reviewed it since. IRS
>> > position from my interpretation was that the 1099-C should not be
>> > issued unless the creditor believed the debt was completely
>> > uncollectable and not before then. That said I am not aware of any
>> > statute holding issuance of the 1099-C acts to prohibit the creditor
>> > from seeking to collect the debt, although if debtor had to pay tax on
>> > the discharged income and the lender took the loss as a tax deduction,
>> > I would raise estoppel as a defense in any action filed. I wonder if
>> > the FDCPA addresses this issue? At the very least the creditor
>> > continuing to attempt collection is a basis to challenge the 1099-C by
>> > the debtor as the creditor clearly does not believe the debt is
>> > uncollectable. If the debt later is collected from the debtor in full
>> > or part then the 1099-C would need to be amended. The creditor should
>> > be able have it's cake and eat it too!
>> > Mark T. Jessee
>> > Law Offices of Mark T. Jessee
>> > "A Debt Relief Agency"
>> > 50 W. Hillcrest Drive, Suite 200
>> > Thousand Oaks, CA 91360
>> > (805) 497-5868
>> > On Wed 9/06/10 6:24 PM , "David A. Tilem" DavidTilem@...
>> > sent:
>> > Robert: Thanks, but it is not exactly my question. I know that
>> > there is COD income tax liability. My question is whether, after
>> > issuing a 1099-C, the lender can still attempt to collect the debt.
>> > Is the lender somehow precluded from attempting to collect the debt
>> > after it issues a 1099-C? David A. Tilem Certified Bankruptcy
>> > Specialist* Law Offices of David A. Tilem (a debt relief agency)
>> > 206 N. Jackson Street, #201, Glendale, CA 91206 Tel: 818-507-6000
>> > Fax: 818-507-6800 * Bankruptcy specialist cert. by State Bar of CA
>> > Bd of Legal Specialization. Business bankruptcy specialist cert.
>> > by Amer. Bd. of Certification -----Original Message-----
>> > FROM: cdcbaa@yahoogroups.com
>> [mailto:cdcbaa@yahoogroups.com ] ON
>> > BEHALF OF Robert
>> > SENT: Wednesday, June 09, 2010 5:29 PM
>> > TO: cdcbaa@yahoogroups.com
>> > SUBJECT: [cdcbaa] Re: Non-Bankruptcy Question
>> > An attempt to give back to the message board.
>> > Borrower owes nothing, based on
>> > http://www.irs.gov/individuals/article/ ... 14,00.html [1]
>> > Publication 4681....
>> > Hope that is of some use, David.
>> > --- In cdcbaa@yahoogroups.com [2],
>> "David A. Tilem" wrote:
>>> > >
>>> > > Bank is owed $500,000 secured by Property.
>>> > > Property is worth $400,000.
>>> > > Bank issues Form 1099-COD for $100,000
>>> > >
>>> > > Question 1: How much must borrower pay to fully satisfy the
>> > obligation?
>>> > > Question 2: Why?
>>> > >
>>> > >
>>> > > Remember: NO BANKRUPTCY INVOLVED
>>> > >
>>> > > David A. Tilem
>>> > > Certified Bankruptcy Specialist*
>>> > > Law Offices of David A. Tilem (a debt relief agency)
>>> > > 206 N. Jackson Street, #201, Glendale, CA 91206
>>> > > Tel: 818-507-6000 Fax: 818-507-6800
>>> > >
>>> > > * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
>>> > > Specialization.
>>> > > Business bankruptcy specialist cert. by Amer. Bd. of
>> > Certification
>>> > >
>> >
>> >
>> > Links:
>> > ------
>> > [1] http://www.irs.gov/individuals/article/ ... 14,00.html
>> > [2] mailto:cdcbaa@yahoogroups.com
>> > [3] mailto:cdcbaa@yahoogroups.com
>> ?subjectRE: [cdcbaa] Re:
>> > Non-Bankruptcy Question
>> > [4]
>> >
>> http://groups.yahoo.com/group/cdcbaa/po ... Azk3MzU5Nz
>> E0BGdycElkAzExNTgwMzE0BGdycHNwSWQDMTcwNTAwMTE4MARtc2dJZAMxNTcwNgRzZWMDZnRyBHN
>> sawNycGx5BHN0aW1lAzEyNzYxMzMwODE-?actreply&messageNum15706
>> > [5]
>> >
>> http://groups.yahoo.com/group/cdcbaa/me ... rODZvBF9TA
>> zk3MzU5NzE0BGdycElkAzExNTgwMzE0BGdycHNwSWQDMTcwNTAwMTE4MARtc2dJZAMxNTcwNgRzZW
>> MDZnRyBHNsawN2dHBjBHN0aW1lAzEyNzYxMzMwODEEdHBjSWQDMTU2OTQ-
>> >
>
>
>
>
>
>>> - John D. Faucher
charset="ISO-8859-1"
Re: [cdcbaa] Re: Non-Bankruptcy Question
Let me go back in time, to when I had a desk in the Office of Chief Counsel of the IRS . . .
I see this case coming to my desk when the IRS issues a notice of deficiency against Joe Taxpayer for failure to report his $100,000 of COD income, which our agent found when the computers matched up the 1099-COD and the retu
The post was migrated from Yahoo.
NCLC FDCPA manual, at 1.5.12 has discussion on the significance of the
issuance of a 1099 C as to cancellation of the liability. There seems to be
no clear guidance. Some cases are bk cases, some are state courts of
appeal, including at least one CA case and a few fed district court cases.
See also 26 cfr 1.6050P-1 explaining some of the reasons other than debt
cancellation that require a 1099 C.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
This has got great article written all over it - 800 words. I had a client recently who got a 1099-C and believed that he no longer had to pay the debt. Luckily the bank saw its mistake and rescinded the 1099-C but I wondered about the efect myself. Does announcing you have written off the debt somehow prevent the collection?
>
>
>
> David:
>
> I researched this issue a few years back from the standpoint of when
> the 1099-C should be issued, but have not reviewed it since. IRS
> position from my interpretation was that the 1099-C should not be
> issued unless the creditor believed the debt was completely
> uncollectable and not before then. That said I am not aware of any
> statute holding issuance of the 1099-C acts to prohibit the creditor
> from seeking to collect the debt, although if debtor had to pay tax on
> the discharged income and the lender took the loss as a tax deduction,
> I would raise estoppel as a defense in any action filed. I wonder if
> the FDCPA addresses this issue? At the very least the creditor
> continuing to attempt collection is a basis to challenge the 1099-C by
> the debtor as the creditor clearly does not believe the debt is
> uncollectable. If the debt later is collected from the debtor in full
> or part then the 1099-C would need to be amended. The creditor should
> be able have it's cake and eat it too!
> Mark T. Jessee
> Law Offices of Mark T. Jessee
> "A Debt Relief Agency"
> 50 W. Hillcrest Drive, Suite 200
> Thousand Oaks, CA 91360
> (805) 497-5868
> On Wed 9/06/10 6:24 PM , "David A. Tilem" DavidTilem@...
> sent:
> Robert: Thanks, but it is not exactly my question. I know that
> there is COD income tax liability. My question is whether, after
> issuing a 1099-C, the lender can still attempt to collect the debt.
> Is the lender somehow precluded from attempting to collect the debt
> after it issues a 1099-C? David A. Tilem Certified Bankruptcy
> Specialist* Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206 Tel: 818-507-6000
> Fax: 818-507-6800 * Bankruptcy specialist cert. by State Bar of CA
> Bd of Legal Specialization. Business bankruptcy specialist cert.
> by Amer. Bd. of Certification -----Original Message-----
> FROM: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] ON
> BEHALF OF Robert
> SENT: Wednesday, June 09, 2010 5:29 PM
> TO: cdcbaa@yahoogroups.com
> SUBJECT: [cdcbaa] Re: Non-Bankruptcy Question
> An attempt to give back to the message board.
> Borrower owes nothing, based on
> http://www.irs.gov/individuals/article/ ... 14,00.html [1]
> Publication 4681....
> Hope that is of some use, David.
> --- In cdcbaa@yahoogroups.com [2], "David A. Tilem" wrote:
> >
> > Bank is owed $500,000 secured by Property.
> > Property is worth $400,000.
> > Bank issues Form 1099-COD for $100,000
> >
> > Question 1: How much must borrower pay to fully satisfy the
> obligation?
> > Question 2: Why?
> >
> >
> > Remember: NO BANKRUPTCY INVOLVED
> >
> > David A. Tilem
> > Certified Bankruptcy Specialist*
> > Law Offices of David A. Tilem (a debt relief agency)
> > 206 N. Jackson Street, #201, Glendale, CA 91206
> > Tel: 818-507-6000 Fax: 818-507-6800
> >
> > * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> > Specialization.
> > Business bankruptcy specialist cert. by Amer. Bd. of
> Certification
> >
>
>
> Links:
> ------
> [1] http://www.irs.gov/individuals/article/ ... 14,00.html
> [2] mailto:cdcbaa@yahoogroups.com
> [3] mailto:cdcbaa@yahoogroups.com?subjectRE: [cdcbaa] Re:
> Non-Bankruptcy Question
> [4]
> http://groups.yahoo.com/group/cdcbaa/po ... o4BF9TAzk3
The post was migrated from Yahoo.
Thanks Mark. If anyone else has thoughts on this issue, I would appreciate
hearing from you as well. Is the Creditor prohibited from attempting
collection AFTER issuing a 1099-C?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Mark T.Jessee
Sent: Wednesday, June 09, 2010 9:06 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Re: Non-Bankruptcy Question
David:
I researched this issue a few years back from the standpoint of when the
1099-C should be issued, but have not reviewed it since. IRS position from
my interpretation was that the 1099-C should not be issued unless the
creditor believed the debt was completely uncollectable and not before then.
That said I am not aware of any statute holding issuance of the 1099-C acts
to prohibit the creditor from seeking to collect the debt, although if
debtor had to pay tax on the discharged income and the lender took the loss
as a tax deduction, I would raise estoppel as a defense in any action filed.
I wonder if the FDCPA addresses this issue? At the very least the creditor
continuing to attempt collection is a basis to challenge the 1099-C by the
debtor as the creditor clearly does not believe the debt is uncollectable.
If the debt later is collected from the debtor in full or part then the
1099-C would need to be amended. The creditor should be able have it's cake
and eat it too!
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Wed 9/06/10 6:24 PM , "David A. Tilem" DavidTilem@TilemLaw.com sent:
Robert:
Thanks, but it is not exactly my question. I know that there is COD income
tax liability. My question is whether, after issuing a 1099-C, the lender
can still attempt to collect the debt. Is the lender somehow precluded from
attempting to collect the debt after it issues a 1099-C?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Robert
Sent: Wednesday, June 09, 2010 5:29 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Non-Bankruptcy Question
An attempt to give back to the message board.
Borrower owes nothing, based on
http://www.irs.
The post was migrated from Yahoo.
David:
I researched this issue a few years back from the standpoint of when
the 1099-C should be issued, but have not reviewed it since. IRS
position from my interpretation was that the 1099-C should not be
issued unless the creditor believed the debt was completely
uncollectable and not before then. That said I am not aware of any
statute holding issuance of the 1099-C acts to prohibit the creditor
from seeking to collect the debt, although if debtor had to pay tax on
the discharged income and the lender took the loss as a tax deduction,
I would raise estoppel as a defense in any action filed. I wonder if
the FDCPA addresses this issue? At the very least the creditor
continuing to attempt collection is a basis to challenge the 1099-C by
the debtor as the creditor clearly does not believe the debt is
uncollectable. If the debt later is collected from the debtor in full
or part then the 1099-C would need to be amended. The creditor should
be able have it's cake and eat it too!
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868
On Wed 9/06/10 6:24 PM , "David A. Tilem" DavidTilem@TilemLaw.com
sent:
Robert: Thanks, but it is not exactly my question. I know that
there is COD income tax liability. My question is whether, after
issuing a 1099-C, the lender can still attempt to collect the debt.
Is the lender somehow precluded from attempting to collect the debt
after it issues a 1099-C? David A. Tilem Certified Bankruptcy
Specialist* Law Offices of David A. Tilem (a debt relief agency)206 N. Jackson Street, #201, Glendale, CA 91206 Tel: 818-507-6000
Fax: 818-507-6800 * Bankruptcy specialist cert. by State Bar of CA
Bd of Legal Specialization. Business bankruptcy specialist cert.
by Amer. Bd. of Certification -----Original Message-----
FROM: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] ON
BEHALF OF Robert
SENT: Wednesday, June 09, 2010 5:29 PM
TO: cdcbaa@yahoogroups.com
SUBJECT: [cdcbaa] Re: Non-Bankruptcy Question
An attempt to give back to the message board.
Borrower owes nothing, based on
http://www.irs.gov/individuals/article/ ... 14,00.html [1]
Publication 4681....
Hope that is of some use, David.
--- In cdcbaa@yahoogroups.com [2], "David A. Tilem" wrote:
>
> Bank is owed $500,000 secured by Property.
> Property is worth $400,000.
> Bank issues Form 1099-COD for $100,000
>
> Question 1: How much must borrower pay to fully satisfy the
obligation?
> Question 2: Why?
>
>
> Remember: NO BANKRUPTCY INVOLVED
>
> David A. Tilem
> Certified Bankruptcy Specialist*
> Law Offices of David A. Tilem (a debt relief agency)
> 206 N. Jackson Street, #201, Glendale, CA 91206
> Tel: 818-507-6000 Fax: 818-507-6800
>
> * Bankruptcy specialist cert. by State Bar of CA Bd of Legal
> Specialization.
> Business bankruptcy specialist cert. by Amer. Bd. of
Certification
>
Links:
[1] http://www.irs.gov/individuals/article/ ... 14,00.html
[2] mailto:cdcbaa@yahoogroups.com
[3] mailto:cdcbaa@yahoogroups.com?subjectRE: [cdcbaa] Re:
Non-Bankruptcy Question
[4]
The post was migrated from Yahoo.
Ah, I was way off. Well assuming there was a foreclosure I provide an equally well intentioned but probably doubly confused second try:
CCP Section 726, commonly known as the "one-action rule," restricts the remedies available to lenders. CCP Section 726(a) provides that, "There can be but one form of action for the recovery of any debt or the enforcement of any right secured by a mortgage upon real property" Moreover, CCP Section 726 requires the lender to first look to the sale of the collateral security for satisfaction of its debt and prevents the lender from bringing more than one action against the debtor. Therefore, if the creditor prevails on its lawsuit for foreclosure, the court will direct the sale of the encumbered property and the application of the proceeds to payment of the creditor's costs and indebtedness. If the proceeds from the sale fail to satisfy the costs of the foreclosure and indebtedness, the creditor can apply within three months following the sale for a deficiency judgment. Upon such application, and establishment of a deficiency, the court will render a money judgment against the debtor for the amount of the deficiency. See CCP Section 580a.
Other instances not involving foreclosure are at:
The post was migrated from Yahoo.
Robert:
Thanks, but it is not exactly my question. I know that there is COD income
tax liability. My question is whether, after issuing a 1099-C, the lender
can still attempt to collect the debt. Is the lender somehow precluded from
attempting to collect the debt after it issues a 1099-C?
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Robert
Sent: Wednesday, June 09, 2010 5:29 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Non-Bankruptcy Question
An attempt to give back to the message board.
Borrower owes nothing, based on
The post was migrated from Yahoo.
No foreclosure involved.
Don't care about the tax side issues.
I just want to know how much the borrower has to pay the lender to satisfy
the debt in full.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
John Faucher
Sent: Wednesday, June 09, 2010 5:08 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Non-Bankruptcy Question
Hello David:
What is the taxpayers tax bracket? If its the 35% bracket, the borrower
will need to pay the IRS $35,000 to satisfy that obligation. Why? Because
the 1099-COD is income, under 26 USC 108, unless the taxpayer can prove the
benefit of one of the loopholes.
I suspect you know this, and youre asking the meta-question: Why, given
that the lender cant prosecute a deficiency judgment in California, and
thus the borrower owes nothing after the foreclosure?
(Questions which may become relevant: is the debt recourse debt? Is the
property a principal residence?)
Because the individual owed $500,000 the moment before the foreclosure, and
after the foreclosure he owed nothing, and thus got a windfall of debt
cancellation; but he gave up an asset that turned out to be worth $400,000,
so it was a trade (if involuntary) of one asset for the cancellation of debt
worth more. The taxpayer is better off after the foreclosure than before.- John D. Faucher
On 6/9/10 4:19 PM, "David Tilem" wrote:
Bank is owed $500,000 secured by Property.
Property is worth $400,000.
Bank issues Form 1099-COD for $100,000
Question 1: How much must borrower pay to fully satisfy the obligation?
Question 2: Why?
Remember: NO BANKRUPTCY INVOLVED
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
- John D. Faucher
Message
No foreclosure
involved.
Don't care about the tax
side issues.
I just want to know how
much the borrower has to pay the lender to satisfy the debt in
full.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.