Loans, Debt & Credit - View Single Post - Walking Away in Oregon -- What am I missing...?

Kick_Me_Out · 08-07-2009, 12:29 PM

Never previously modified through SLS -- and am just looking to get them to go away also. And I don't think that I am all that worried about the 1099. I think I read on here somewhere about most of those should be able to go away too - with a good CPA...

Let's look at really general terms...

Buy the house for $200,000 (finance 100%)
Bank Forecloses
They have it appraised and it is at $100,000

They are $100,000 short so they give you a 1099 for $100,000

If you bought it for $200K and "disposed of it" at $100K, didn't you lose $100K? then you get the 1099 that shows income of $100K. Doesn't that make things a wash?

I would need some clarification on that from a tax person, but I think I read that on this board somewhere...

08-07-2009, 12:29 PM	#10 (permalink)
Kick_Me_Out Member Join Date: Jul 2009 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in Oregon -- What am I missing...? Never previously modified through SLS -- and am just looking to get them to go away also. And I don't think that I am all that worried about the 1099. I think I read on here somewhere about most of those should be able to go away too - with a good CPA... Let's look at really general terms... Buy the house for $200,000 (finance 100%) Bank Forecloses They have it appraised and it is at $100,000 They are $100,000 short so they give you a 1099 for $100,000 If you bought it for $200K and "disposed of it" at $100K, didn't you lose $100K? then you get the 1099 that shows income of $100K. Doesn't that make things a wash? I would need some clarification on that from a tax person, but I think I read that on this board somewhere...