House was auctioned off yesterday

[KT in CA]

Originally Posted by trappedincali

Well, it was a busy three days moving, but it's almost complete. We still keep one vehicle at the old house and I have two lights on timers to keep the appearance of occupation.

I called the contact number written on the Fannie Mae form, but got no response. I called Fannie Mae's number (which was also on the notice) and they gave me the number of the agency assigned to the property. Left a voicemail there too, but still no response after three days.

Funny, the letter said I had three days to contact them, but nobody has returned my calls.


Thanks for all the info on the tax situation. We don't really have a lot of debt (~25k), so insolvency may not help much at all.

Since the house probably wont sell until next year, I'm assuming we wont get a 1099 until 2011?

You can include the value of your home at the time of the foreclosure as an asset, and the mortgage(s) you held as a liability. That should put you upside down by quite a bit. It does in our case. We are in the same boat as you with recourse loans. However much you are insolvent by is how much you can take off of the 1099 amount. And the bank will send you a 1099 because they took it back. It doesn't actually have to "sell" to an outside party. The ownership transferred to them at the trustee sale.

[flagirl4444]

If this is your primary residence you may not have to pay income taxes on some or all of the deficiency.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

[trappedincali]

Originally Posted by KT in CA

You can include the value of your home at the time of the foreclosure as an asset, and the mortgage(s) you held as a liability. That should put you upside down by quite a bit. It does in our case. We are in the same boat as you with recourse loans. However much you are insolvent by is how much you can take off of the 1099 amount. And the bank will send you a 1099 because they took it back. It doesn't actually have to "sell" to an outside party. The ownership transferred to them at the trustee sale.

Thanks for the info, that didn't occur to me. Which source do you use for the value though? Did you get help from a CPA on the paperwork?